(LAS VEGAS, KXNT)–A Henderson man has been sentenced to more than 4 years in prison and ordered to pay more than $800,000 in restitution in a mortgage fraud scheme. His two brothers have already been sentenced in the scheme that prosecutors say cheated banks out of more than a million dollars.
Lance Kellow, 37, was convicted by a jury in March of last year of conspiracy to commit mail and wire fraud, three counts of wire fraud and one count of bank fraud.
Prosecutors say Kellow, a loan officer and licensed mortgage broker, along with two of his brothers, lied to mortgage lenders to obtain real estate and money for their own use.
They are accused of selling their houses to a cousin for significant profit, using false information about the cousin’s employment and finances to qualify him for loans and mortgage applications.
Lenders made loans to the cousin that they would not have otherwise made, say prosecutors. Using this scheme, said the U.S. Attorney’s Office, the Kellow brothers received over $500,000 in cash from these sales. The cousin then defaulted on the mortgages.
Lance Kellow will report to federal prison by June 5, 2014.
Jason Kellow pleaded guilty to conspiracy to commit bank fraud, and was sentenced in March 2013 to 33 months in prison and ordered to pay $1 million in restitution. Vinson Kellow pleaded guilty to wire fraud and was sentenced in April 2013 to seven months in prison.