A Lexington woman convicted of fraud related to loans totaling more than $350,000 has been sentenced to three years and 10 months in federal prison.
Kelly Harris is required to pay $110,785 in restitution to the federal government under the sentence.
Harris and her husband, Neal Harris, applied for a loan in 2020 under a federal program designed to help businesses weather the economic crisis caused by the COVID-19 pandemic.
According to court documents, the requests were made to the Ruby E. Bailey Family Service Center, Turtle Doves, North Side Market, Grace Christian Fellowship Church and American Workhorse LLC.
The Bailey Center ran programs in Lexington, including food assistance and after-school activities for low-income youth. Turtle Doves was founded to help black farmers bring their crops to market, according to federal tax filings and court documents.
Neal Harris was a pastor at Grace Christian Fellowship when he applied for a church pandemic loan in 2020.
Not all of the loans were approved, but according to the U.S. Department of Justice, the Harrises received a total of $357,600 in loans for three of the companies.
According to authorities, a bank discovered the fraud and returned some of the money to the government.
A jury convicted Neal and Kelly Harris on eight counts of wire fraud. They did not apply for all the loans together, so they will face different repayment amounts.
The restitution amount for Neal Harris will be determined at a later date.
U.S. District Judge Robert E. Wier sentenced Kelly Harris on Monday. Neal Harris is expected to be sentenced next week.
Kelly Harris acted in good faith by applying for loans to keep her nonprofit afloat, but she could no longer handle the complicated paperwork, her attorney, Ned Pillersdorf, said in a sentencing memorandum.
In letters to the court, several advocates said Harris is a deeply religious woman who has worked hard to help others.
“Her dedication and tenacity were focused on her personal mission to help others,” said Joseph C. Benton, a Richmond attorney.
However, the prosecutor, Assistant U.S. Attorney Kate K. Smith, said in a sentencing memorandum that Harris knowingly included false information on loan applications, filed falsified Internal Revenue Service documents and lied at trial.
“Defendant’s conduct demonstrates a disregard for the law and a fundamental failure to understand the true purpose of the COVID-19 relief funds,” Smith wrote.
Wier had Kelly Harris arrested during Monday’s hearing, according to the official report.
