Brent Edward Lovett, 50, Henderson, Nevada, following a six-day jury trial, was convicted of bank fraud for making false statements to a federally insured credit union to obtain a $7.5 million commercial real estate loan.
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.
Lovett is free on a personal recognizance bond and is scheduled to be sentenced by Senior U.S. District Judge Roger L. Hunt on May 29, 2013. He faces up to 30 years in prison and a $1 million fine.
Daniel G. Bogden, United States Attorney for the District of Nevada, announced the conviction.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.