A former Cincinnati mayoral candidate is facing federal charges in a pandemic relief fraud scheme.Investigators said Kelli Prather received nearly $20,000 of the more than $600,000 in relief she applied for.Federal investigators are warning people who are tempted to defraud the system that they are watching it closely.They said Prather is part of their fourth round of fraud cases in our region."I'm not the career politician. I'm not the party favorite. I'm the person who represents the people," Kelli Prather said during a 2020 interview.She was in the spotlight running for Hamilton County Commission in 2020.Prather was more recently running for mayor of Cincinnati, a city plagued with federal corruption cases."The reason I decided to jump into the mayoral's race is because all of the problems that I have discussed in the past," Prather said during a 2021 interview about the race.Now, she is accused by federal investigators of taking part in pandemic relief fraud."The program benefits were designed to provide a lifeline, to cover payroll. Instead, the funds are being used for something else entirely," Acting U.S. Attorney Vipal Patel said.According to the U.S. Attorney's Office, Prather applied for six paycheck protection program loans claiming to own six businesses.The feds started digging in September 2020, according to documents WLWT reviewed, and they found the businesses did not appear operational.They said Prather wanted more than $600,000 in relief funds and fraudulently received nearly $20,000.Officials said Fifth Third Bank found discrepancies and declined to fund more.Documents show one of Prather's loan applications listed one employee who made $19,862 a month, but supporting documentation showed only $1,500 a year in income."The charged defendants used these funds in various ways, but there was a lot of personal use going on," Patel said.Investigators allege Prather pocketed money and used it at salons and restaurants.Some of the purchases outlined in the federal complaint documents include stops at Dollar General, City Gear, Kroger and Juicy Crab.The documents show Prather claimed her businesses were legitimate, but that she admitted some expenses were personal.Federal officials warn that they are watching these programs closely."If they don't stop, they continue on, we're going to come knocking," Patel said.Prather faces charges including bank fraud, aggravated identity theft and making false statements.She declined to comment.Three other people from our area were also charged in separate pandemic relief fraud schemes.Federal officials said Toni Wright, 34, from Cincinnati, allegedly received $349,000 in fraudulent PPP relief loans.They said she made false statements at the purported sole owner of Poshedbar, a hair and nail salon, Beautiful Beginnings Doula Service and Jerry's Electronics.Investigators said Wright used the money for restaurants, purchases at Michael Kors, Louis Vuitton, Kay Jewelers and for vacations.They also said Wright spent more than $10,000 at Sono Bello, a facility that advertises laser liposuction and body contouring.Wright faces charges including bank fraud, wire fraud, making false statements and false representation of a social security number.Officials said Melissa McGhee, 37, from Cincinnati, allegedly received $186,000 in fraudulent relief funds, which she used, in part, to purchase real estate.Investigators said she allegedly lied about an FHA loan for a new home.They said she applied for seven different pandemic relief loans and received three.According to investigators, McGhee used the business names M&MM Realty Group and M&M Realty Group to submit fraudulent applications.She faces charges including bank fraud, committing fraud in connection with a major disaster or emergency benefits and wire fraud.Federal officials said Jon Alan Bader, 50, from Dayton, allegedly received more than $120,000 in fraudulent pandemic relief funds by lying on applications.They said he registered the business, JB Auto Wholesale, LLC, with the state of Ohio in June 2020, after the cutoff eligibility date for the loans.Investigators said he spent the relief money on Door Dash, Uber, apparel at Puma, Lacoste and Saks, and travel.He faces charges including bank fraud, wire fraud and making false statements.
A former Cincinnati mayoral candidate is facing federal charges in a pandemic relief fraud scheme.
Investigators said Kelli Prather received nearly $20,000 of the more than $600,000 in relief she applied for.
Federal investigators are warning people who are tempted to defraud the system that they are watching it closely.
They said Prather is part of their fourth round of fraud cases in our region.
"I'm not the career politician. I'm not the party favorite. I'm the person who represents the people," Kelli Prather said during a 2020 interview.
She was in the spotlight running for Hamilton County Commission in 2020.
Prather was more recently running for mayor of Cincinnati, a city plagued with federal corruption cases.
"The reason I decided to jump into the mayoral's race is because all of the problems that I have discussed in the past," Prather said during a 2021 interview about the race.
Now, she is accused by federal investigators of taking part in pandemic relief fraud.
"The program benefits were designed to provide a lifeline, to cover payroll. Instead, the funds are being used for something else entirely," Acting U.S. Attorney Vipal Patel said.
According to the U.S. Attorney's Office, Prather applied for six paycheck protection program loans claiming to own six businesses.
The feds started digging in September 2020, according to documents WLWT reviewed, and they found the businesses did not appear operational.
They said Prather wanted more than $600,000 in relief funds and fraudulently received nearly $20,000.
Officials said Fifth Third Bank found discrepancies and declined to fund more.
Documents show one of Prather's loan applications listed one employee who made $19,862 a month, but supporting documentation showed only $1,500 a year in income.
"The charged defendants used these funds in various ways, but there was a lot of personal use going on," Patel said.
Investigators allege Prather pocketed money and used it at salons and restaurants.
Some of the purchases outlined in the federal complaint documents include stops at Dollar General, City Gear, Kroger and Juicy Crab.
The documents show Prather claimed her businesses were legitimate, but that she admitted some expenses were personal.
Federal officials warn that they are watching these programs closely.
"If they don't stop, they continue on, we're going to come knocking," Patel said.
Prather faces charges including bank fraud, aggravated identity theft and making false statements.
She declined to comment.
Three other people from our area were also charged in separate pandemic relief fraud schemes.
Federal officials said Toni Wright, 34, from Cincinnati, allegedly received $349,000 in fraudulent PPP relief loans.
They said she made false statements at the purported sole owner of Poshedbar, a hair and nail salon, Beautiful Beginnings Doula Service and Jerry's Electronics.
Investigators said Wright used the money for restaurants, purchases at Michael Kors, Louis Vuitton, Kay Jewelers and for vacations.
They also said Wright spent more than $10,000 at Sono Bello, a facility that advertises laser liposuction and body contouring.
Wright faces charges including bank fraud, wire fraud, making false statements and false representation of a social security number.
Officials said Melissa McGhee, 37, from Cincinnati, allegedly received $186,000 in fraudulent relief funds, which she used, in part, to purchase real estate.
Investigators said she allegedly lied about an FHA loan for a new home.
They said she applied for seven different pandemic relief loans and received three.
According to investigators, McGhee used the business names M&MM Realty Group and M&M Realty Group to submit fraudulent applications.
She faces charges including bank fraud, committing fraud in connection with a major disaster or emergency benefits and wire fraud.
Federal officials said Jon Alan Bader, 50, from Dayton, allegedly received more than $120,000 in fraudulent pandemic relief funds by lying on applications.
They said he registered the business, JB Auto Wholesale, LLC, with the state of Ohio in June 2020, after the cutoff eligibility date for the loans.
Investigators said he spent the relief money on Door Dash, Uber, apparel at Puma, Lacoste and Saks, and travel.
He faces charges including bank fraud, wire fraud and making false statements.
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