LAS VEGAS A member of Lockheed FCU (now Logix FCU) was sentenced yesterday to 98 months in federal prison and ordered to pay $4.9 million restitution for making false statements to obtain a $7.5 million member business loan that eventually went sour and siphoning more than $1.3 million of the proceeds for himself.
Brent Lovett, 50, principal owner of Bay Resorts, was convicted of bank fraud in the case in February.
From May to June 2006, Lovett caused Bay Resorts to purchase two commercial buildings in Las Vegas for $6 million, financing the deal with a $7.5 million MBL from the credit union. Lovett caused Bay Resorts to sell the buildings for $10 million to another company he controlled, Equity Resource.
In the application and supporting documents, Lovett made false statements and omissions regarding Bay Resorts, Equity Resource, and the sales history of the buildings.
Lovett obtained roughly $1.3 million from the proceeds of the sale of the buildings to Equity Resource. He then allowed the buildings to go into foreclosure and kept the balance of the loan proceeds for himself.
