A former senior official with Chicago Public Schools has been indicted on federal charges related to COVID-19 loan fraud. Crystal Cooper, who served as the district’s chief operating officer until her resignation in 2023, was charged in May with three counts of wire fraud connected to pandemic relief loans. The charges were made public during Cooper’s initial court appearance on July 23, where she pleaded not guilty and was released on a $10,000 bond ahead of a court date scheduled for August 27.
According to the federal indictment, beginning in June 2020, Cooper applied for two loans through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. These programs were designed to assist small businesses and vulnerable workers during the COVID-19 pandemic. The indictment alleges Cooper falsified documents to overstate the income of a side business she owned in order to secure approximately $28,000 in loans, which were ultimately forgiven by the government. Prosecutors claim she used the funds for personal benefit.
While the indictment does not specify the name of her side business, public records and Cooper’s LinkedIn profile identify her as co-owner of Suite 1367 Development LLC, a general contracting firm that received PPP funds in 2021. The charges state that Cooper submitted false tax information stating her business earned $75,000 in gross income for 2020, which was significantly inflated compared to the actual revenue.
During the period of alleged fraud, Cooper held leadership roles at CPS, initially serving as director of nutrition support services, a position critical in managing meal programs during school closures. She was promoted to chief of staff in 2021 under then-CEO Pedro Martinez and became chief operating officer the following year. Her annual salary exceeded $200,000.
An internal CPS inspector general report from September 2023 found that Cooper had concealed income from her side business throughout her employment, failing to disclose this information in required financial statements. The report, which did not name Cooper but matches details linked to her case, said she admitted to hiding this income during an internal investigation. Shortly afterward, she resigned and was placed on the district’s do-not-hire list.
A spokesperson for Chicago Public Schools emphasized the district’s commitment to integrity and accountability, noting the role of the inspector general in uncovering the alleged misconduct. The spokesperson stated that CPS would continue to enforce policies ensuring ethical standards across the district.
The case is part of a broader pattern of pandemic relief loan fraud involving public employees in Chicago. According to a 2023 CPS report, over 780 district employees received PPP loans during the pandemic, with some cases involving legitimate claims and others potentially involving identity theft. The same report highlighted 14 employees, mostly in senior roles with salaries above $100,000, who were found to have committed fraud. Additionally, investigations by the City Hall inspector general uncovered more than 1,000 possible instances of PPP fraud among city employees, including at least 36 Chicago police officers accused of misusing hundreds of thousands of dollars in relief funds.
Cooper’s attorney has declined to comment on the case, which remains pending in federal court.