Lexington pastor convicted in COVID-19 loan fraud case sentenced to three years in prison
A Lexington minister convicted of fraud in connection with more than $350,000 in COVID-19 relief loans has been sentenced to three years and one month in prison.
A jury in federal court convicted Neal Harris, 57, and his wife, Kelly Harris, 64, on eight charges each of wire fraud earlier this year.
The couple applied for loans through a federal program designed to help businesses hurt by the economic downturn caused by the coronavirus pandemic that started in the U.S. in early 2020.
They ultimately received a total of $357,300 through applications submitted for four businesses, according to a sentencing memorandum by Assistant U.S. Attorney Kate K. Smith.
Those included Grace Christian Fellowship Church, which Neal Harris established and leads, and the Ruby E. Bailey Family Service Center in Lexington, which offered programs that included after-school activities for low-income young people, according to the court record and tax returns.
Federal authorities said the couple put false information in the loan applications, including misrepresenting when the businesses started, the number of employees and gross revenue.
Neal Harris’ attorney, Pamela D. Perlman, said in a sentencing memorandum that he tried unsuccessfully to get help on the loan applications to do them correctly, but no one could answer his questions.
Harris worked at the Toyota plant in Georgetown for many years and operated a barbecue business on the side to raise money for his church, according to the memo.
Harris left Toyota after hurting his back and turned the barbecue sideline into a full time business, the memo said.
Perlman sought a sentence for Harris that did not include prison time, saying that a prison sentence “would be far greater punishment than is called for in this case.”
Federal authorities, however, said that in addition to putting false information in the loan applications, Harris and his wife later submitted more false documentation and lied during their testimony at the trial.
The couple used money from the loans to pay homeowners association fees and other personal debts and to buy restaurant equipment and a vehicle, according to a government motion.
Central Bank in Lexington raised concerns that accounts the couple had were fraudulent and turned over information to federal authorities, according to the court record.
The bank also returned some of the money to the federal government.
U.S. District Judge Robert E. Wier sentenced Neal Harris on Monday.
The judge sentenced Kelly Harris last week to three years and 10 months in prison and ordered her to repay $110,785.
Prosecutors said Neal Harris owes restitution of $170,796.
