Prosecutor: 'Greed and desperation' motive in COVID-19 fraud trial

A local activist and onetime mayoral candidate fraudulently sought more than $1 million in pandemic relief money in the early months of the COVID-19 pandemic, prosecutors said Wednesday.

During opening statements in federal court in Cincinnati, prosecutors said Kelli Prather made numerous false statements on applications for pandemic relief about the revenue her businesses generated as well as the number of people she employed.

Prather submitted numbers that were “a figment of her imagination,” Assistant U.S. Attorney Anthony Springer told jurors.

“This case is born of greed and desperation,” he said.

Prather, 51, faces charges of bank fraud, wire fraud, making false statements on a loan or credit application and identity theft.

Her attorney, Arica Underwood, gave a brief opening statement, saying the case was about “mistakes and missteps.”

“Those don’t equal misdeeds and misconduct,” Underwood said, adding that Prather will testify and “describe what was going on.”

Underwood said investigators found fraud where there had only been mistakes.

“If you look for the bad in mankind expecting to find it,” she said, “you certainly will.”

Multiple loans

Prather sought money through two federal programs intended to help small businesses pay employees amid lockdowns and economic uncertainty during the early months of the pandemic.

Springer described how Prather sought multiple loans through the Paycheck Protection Program as well as the Economic Injury Disaster Loan program. The loans often ended up being forgiven and became grants, according to testimony.

Prather’s first application was submitted in June 2020 for Enhanced Healthcare Solutions. The application said the business had one employee. It was the only application that was approved, and she received $19,820. However, an official with Fifth Third Bank testified Wednesday that bank officials eventually realized it should not have been approved.

The next month, prosecutors say Prather submitted an application under a different program for the same business, Enhanced Healthcare Solutions. It was submitted in the name of her nephew, Springer said, who was listed as a 55% owner.

The application said the business had 12 employees and listed more than $300,000 in revenue, according to court documents. Springer said a total of three applications were filed in the nephew’s name.

In all, Prather said she owned six different businesses and sought more than $1.2 million, Springer said.

Testimony continues Thursday before U.S. District Judge Matthew McFarland.

This article originally appeared on Cincinnati Enquirer: Prosecutor: 'Greed and desperation' motive in Kelli Prather trial