Brent Edward Lovett, 50, Henderson, Nevada, who made false statements to a federally insured credit union to obtain a $7.5 million real estate loan, was sentenced by Senior U.S. District Judge Roger L. Hunt to 98 months in prison, five years of supervised release and ordered to pay restitution to the credit union.
The defendant was convicted by a jury in February 2013 of bank fraud. Lovett was permitted to self-report to federal prison by Aug. 2, 2013.
According to the indictment and evidence presented to the jury during the trial, during 2006, Lovett devised a scheme to defraud Lockheed Federal Credit Union by fraudulently obtaining a commercial real estate loan from which he would skim part of the loan proceeds for himself. Lovett controlled Bay Resorts International, which leased two commercial buildings at 2400 N. Tenaya Way, Las Vegas, Nevada. From about May to June 2006, Lovett caused Bay Resorts to purchase the buildings for $6 million. Lovett caused Bay Resorts to sell the buildings for $10 million to another company he controlled, Equity Resource, Inc.
Lovett caused Equity Resource to apply for a commercial real estate loan with Lockheed Federal Credit Union to purchase the buildings, and in the application and supporting documents, Lovett made false statements and omissions regarding Bay Resorts, Equity Resource, and the sales history of the buildings. Based on those false statements, Lockheed Federal Credit Union made a loan to Equity Resource for $7.5 million. Lovett obtained approximately $1.3 million from the proceeds of the sale of the buildings to Equity Resource. Lovett then allowed the buildings to go into foreclosure and kept the balance of the proceeds for himself.
Daniel G. Bogden, United States Attorney for the District of Nevada, announced the sentence.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.