Woman who ran for Cincinnati mayor found guilty in $1.2 million COVID-19 fraud case

Kevin Grasha, Cincinnati Enquirer
Updated ·2 min read
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A day after testifying that her accountant, a bank manager and even her own nephew may have been responsible for fraud she was accused of committing, a jury convicted Kelli Prather on all 14 counts she faced.

The jury in federal court in Cincinnati on Tuesday found Prather guilty of defrauding two federal programs that were intended to help small businesses during the early months of the COVID-19 pandemic.

She was convicted of bank fraud, wire fraud, making false statements on a loan application and identity theft.

Prather faces up to 30 years in prison on just the bank fraud charge. U.S. District Judge Matthew McFarland ordered that she be jailed until her sentencing, which was not scheduled.

The verdict shows the downfall of a woman who just two years ago wanted be Cincinnati’s mayor. Prather, 51, testified in her own defense Monday and told the jury she still has political aspirations.

The charges surrounded Prather’s attempts between June and November 2020 to qualify for COVID-19 relief money.

Prather submitted applications that included multiple false statements, seeking more than $1.2 million for six businesses she owned. But prosecutors said most of the businesses were not in operation.

Prather claimed in one application that in a seven-month span she earned nearly $1 million from her business, Rich Glo Management, prosecutors said. Around the same time, prosecutors said, she was receiving unemployment assistance from the state.

And despite claiming more than a million dollars in revenue for her businesses, prosecutors said, no federal taxes were reported or collected from the businesses between 2017 and 2020.

“Ms. Prather was not the successful businesswoman she claimed to be,” Assistant U.S. Attorney Ebunoluwa Taiwoo said during closing arguments Monday.

Prather testified in her own defense and described how she had sought political office, running for U.S. Senate, Cincinnati City Council, Hamilton County Commission and Cincinnati mayor between 2016 and 2021.

She also described herself as a social justice and civil rights activist, as well as the author of a book about her life.

Prather's attorney said the charges arose from "mistakes and missteps."

This article originally appeared on Cincinnati Enquirer: Kelli Prather guilty in $1.2 million COVID-19 fraud case