Henderson man sentenced for mortgage fraud scheme
Las Vegas, NV (KTNV) -- A Henderson man has been sentenced to 57 months in prison and ordered to pay $834,000 in restitution for his role in a mortgage fraud scheme that caused over $1 million in losses to federally insured financial institutions.
Lance Kellow, 37, was sentenced on Friday by U.S. District Judge Gloria M. Navarro.
Kellow was convicted by a jury in March 2013 of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and one count of bank fraud.
Kellow, an experienced loan officer and licensed mortgage broker in Southern Nevada, used his experience and knowledge to commit mortgage fraud for profit.
On four different occasions, he and his brothers, Jason and Vince Kellow, lied to mortgage lenders in order to get real estate and money for their own use.
Beginning in January 2007, the brothers conspired to sell their houses to their cousin, who was not qualified to buy them, for a significant profit. The brothers placed false information about their cousin's employment and finances in mortgage loan applications, and helped him qualify for the loans by depositing cash in his bank account and omitting and paying down his debt, all without informing the lenders.
As a result of the false statements in the loan applications, the lenders made loans to the cousin that they would not have otherwise made.
Using this scheme, the Kellow brothers received over $500,000 in cash from these sales. The cousin then defaulted on the mortgages, causing losses to the banks in excess of $1 million.