Metro Council candidate faces federal fraud charges

LOUISVILLE, Ky. (WAVE) – Betty Walker, also known as Betty Bailey, appeared before a federal judge Thursday after filing to run for the Metro Council District 5 seat in January.

Prosecutors allege Bailey took part in a scheme involving loans intended to help small businesses and their employees during the COVID pandemic.

According to a federal indictment, Bailey applied for a Paycheck Protection Program (PPP) loan around March 26, 2021, through a woman named Kaelynn Greene and received more than $16,000. She reportedly paid Greene $2,500 for assistance around April 9 and used the funds for personal expenses.

To conceal the activity, the indictment states that Greene submitted a federal loan forgiveness application on Bailey’s behalf in December, falsely claiming nearly $10,000 had been used for payroll. Prosecutors say that did not occur.

Bailey also allegedly recruited others into the scheme, collecting payments from them and passing money to Greene to file additional fraudulent applications. Prosecutors claim the scheme generated about $1.6 million between 2020 and 2022 among five individuals.

Despite the charges, Bailey’s name will remain on the May ballot. Jefferson County Clerk David Yates said state law does not allow removal of a candidate under these circumstances.

“I am aware of the federal charges involving a candidate for Metro Council. While those allegations are serious, under Kentucky law an indictment does not disqualify a candidate from appearing on the ballot,” Yates said in a statement. “Under Kentucky law a County Clerk has no discretion to remove a certified candidate. Once a candidate is certified, the Clerk is legally required to prepare the ballot unless one of three things occurs: 1) the candidate withdraws or dies, 2) the Secretary of State does not certify the candidate, or 3) a court issues an order disqualifying the candidate. In this situation, my role is strictly ministerial, not judicial. My office will continue to administer the election fairly, transparently, and in accordance with the law.”

Bailey faces a charge of conspiracy to commit wire fraud. Her campaign website and Facebook page remain active, and she has not responded to requests for comment.

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