Henderson Man Loses Mortgage Fraud Case - 8 News NOW

Henderson Man Loses Mortgage Fraud Case

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LAS VEGAS --  A Henderson man faces up to 30 years in prison following his conviction Friday in a mortgage fraud case that cost banks more than $1 million, Nevada's U.S. Attorney Daniel Bogden said.

Lance Kellow, 36, was convicted of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud and one count of bank fraud. He also faces up to $1 million in fines for each count, and is scheduled to be sentenced by U.S. District Judge Gloria Navarro on May 31.

Kellow is free on a personal recognizance bond.

According to the indictment and evidence presented at trial, Kellow used his experience as a mortgage loan officer to commit mortgage fraud and profit. The government argued that on four occasions, he and his brothers lied to mortgage lenders to get real estate and money for their own use.

Beginning in 2007, Kellow and brothers Jason and Vince Kellow conspired to sell their houses for a significant profit to their cousin, who was not qualified to buy them. The government argued that Kellow and his brothers sent lenders loan applications that contained false statements about their cousin's employment, income, intent to occupy the property, assets and financial liabilities.

To help their cousin qualify for loans, the brothers deposited cash in his account, paid down his debt, and arranged for false verifications of employment and income, all without informing the lenders. They also omitted other property purchases and mortgage loans from their cousin's loan applications. Lenders made loans to their cousin they otherwise would not have made that enabled him to buy the properties.

The Kellow brothers received more than $500,000 from these sales. Lance Kellow received more than $100,000. Because their cousin was not financially qualified to buy the properties, he was unable to pay the mortgages and they went into foreclosure. 

Vinson Kellow pleaded guilty to wire fraud in January 2012. Jason Kellow pleaded guilty to conspiracy to commit bank fraud in August 2010. Sentencing dates for both will be scheduled soon.

The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn Newman and Christina Brown.

 

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