Chicago businessman gets 2 years in state-grant fraud scheme

SPRINGFIELD, Ill. (AP) - A Chicago businessman has been sentenced to two years in prison for fraudulently getting two state agencies to award him similar grants and pocketing some of the money.

U.S. District Judge Sue Myerscough sentenced 66-year-old George E. Smith in Springfield last week. He's also been ordered to pay $500,000 in restitution to the state.

Smith pleaded guilty in March to mail fraud and money laundering.

Myerscough noted that Smith took advantage of a personal relationship with a former director of the Illinois Department of Children and Family Services in getting for his nonprofit a $450,000 grant in 2008 to help disadvantaged students. The same day, the Illinois State Board of Education awarded his agency $342,000 for a similar program.

Neither agency was aware of the other's grant.