Kentucky woman who used forged papers to get coronavirus aid sentenced to prison

A Kentucky woman who filed fraudulent applications for coronavirus relief meant to aid small businesses and renters has been sentenced to three years and six months in federal prison.

Crystal Elder, of Marion County, also was ordered to repay a total of $52,972 in restitution. Of that, she owes more than $38,000 to a Kentucky program aimed at helping people avoid eviction and the rest to the U.S. Small Business Administration.

Elder pleaded guilty to one charge of wire fraud and one charge of aggravated identity theft.

She admitted that she inflated the number of employees and the expenses of her home health business, Helping Hands of Central Kentucky LLC, in applying to a forgivable loan program Congress approved early in 2020 to help businesses keep employees during the coronavirus pandemic.

Elder used money she received for personal purchases at businesses that included One Sexy Biker Chick, McDonalds, Tractor Supply, Loretto Lumber, Poshmark, Walmart and Dollar General, according to her plea agreement.

Elder also admitted she filed false information to get money from a program set up to pay landlords not to evict renters.

Elder said she rented a place to her daughter, and used a forged check and fake eviction letter in the application. She also illegally used identifying information on her daughter and grandchildren, according to her plea.

In another case, Elder used false information, including a forged health-department permit, in seeking money designed to help restaurants and bars.

The photo submitted with the application was of a business in the Philippines, according to the court record.

Elder’s attorney, John W. Oakley II, argued in a court document that Elder should not get as much time in prison as Randall “Rocky” Blankenship Jr., a Versailles man sentenced to 42 months in prison for using fake information in seeking $1.3 million through the program Congress approved to get money to small businesses, called the Paycheck Protection Program.

The identity theft charge against Elder had a mandatory two-year sentence, however, which Blankenship didn’t face.

U.S. District Judge Gregory F. Van Tatenhove sentenced Elder April 26.