CINCINNATI — Bru Burger has signed on as the first restaurant tenant for the Montgomery Quarter Development, a mixed-use project.

The project update comes about a month after developers broke ground for apartments at the construction site on Montgomery Road.

Neyer Properties, Brandicorp, and the city of Mongomery’s development team are collaborating on the project. Casto will be contributing to the development through its housing space.

Jeff Chamot, the director of development for Neyer Properties says residents can expect to see structures for the incoming parking garage, retail and office space in future months. Last month, workers broke ground on apartments that will also be on site.

“There’s a significant park space and community space and there will be concerts and other public activities in there. We have a hotel coming in as well. So there will be weddings and activities. So we really want it to be a very exciting and vibrant space for the community.”

Bru Burger and Fifth Third Bank Wealth Management will be the first businesses there to open to the public next summer. The apartments will be finished and ready for move-in by the end of 2022.

Monique John covers gentrification for WCPO 9. She is part of our Report For America donor-supported journalism program. Read more about RFA here.

If there are stories about gentrification in the Greater Cincinnati area that you think we should cover, let us know. Send us your tips at moveupcincinnati@wcpo.com.

CINCINNATI — A federal judge has granted class-action status to a 9-year-old lawsuit that alleges Fifth Third Bank misled consumers about the interest rates they paid on cash-advance loans.

It's a case that could cost the bank more than $280 million, according to court filings. The lawsuit alleges Fifth Third violated Truth in Lending rules and breached loan agreements when it offered Early Access loans by quoting an annual percentage rate of 120% for short-term loans that carried much higher effective interest rates.

Fifth Third declined to comment on the March 26 ruling by U.S. District Judge Michael Barrett.

People who were enrolled in Fifth Third's Early Access Loan Program from Aug. 3, 2011 through April 30, 2013 will be eligible to pursue damages on the Truth in Lending act claims. Those suing for breach of contract can opt into the class action if they enrolled in Early Access before May 1, 2013, and took out at least one loan from the program.

"We are pleased with Judge Barrett's ruling, which clears the way for a classwide trial and the return of hundreds of millions in usurious interest to thousands of Fifth Third customers," said Hassan Zavareei, a Washington, D.C., attorney who successfully argued the case on behalf of plaintiffs.

"While we cannot comment on the pending litigation, Fifth Third's commitment is to put our customers first," said Fifth Third spokesman Ed Loyd.

As WCPO previously reported, the bank has argued its customers were aware of the fees they were paying for Early Access loans, which allowed people to borrow against their next paycheck when they were short on cash.

Because the bank clearly spelled out that borrowers would pay a $10 fee on every $100 borrowed, Barrett initially dismissed the breach of contract claim. But he was reversed by the Sixth Circuit Court of Appeals, which ruled the bank's contracts included two contradictory explanations for the annual percentage rate that applied to its loans.

"The APR is designed to allow people to compare the cost of credit, and it's exactly what it doesn't do here," University of New Mexico Law Professor Nathalie Martin told WCPO last July. Martin predicted that the case would be certified as a class action, increasing the pressure on Fifth Third to settle the case.

CINCINNATI —

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.