Kentucky man sentenced for $4 million for loan fraud. This was his third federal case.

A Kentucky man who fraudulently obtained $4.4 million in loans has been sentenced to nine years and two months in prison.

Wavy Curtis Shain, 42, of Nelson County, pleaded guilty to fraud and money laundering charges.

Shain participated in a scheme to defraud two financial institutions by seeking to refinance properties he did not own, conducting false real estate transactions and purchasing real estate in the names of others without their knowledge, according to the filing judicial and a press release. federal authorities.

Shain secured just over $4 million in loans from two lenders.

He also obtained a fraudulent $431,065 loan from a federal program set up at the start of the COVID-19 pandemic to help businesses keep employees on payroll.

Court documents listed properties in Louisville, Owensboro and Morehead that federal authorities were seeking to take in order to recover money from Shain, as well as a Range Rover, a red Lexus convertible, a Cadillac and a BMW, as well as proceeds from the sale of properties in New York, Colorado and Florida.

A judge sentenced Shain last week in federal court in Louisville.

Records show this was his third federal fraud conviction.

In the first case, he pleaded guilty in Kentucky in September 2009 to bank fraud and wire fraud.

Shain admitted that he arranged loans for people and took money from the profits.

He also admitted to a scheme in which he wrote cold checks to accounts at two different banks and deposited them at the other bank, thereby inflating the account balances, and then withdrew the money.

A judge sentenced him to 57 months in prison and ordered $1.8 million in restitution, according to court records.

In July 2020, he was indicted in federal court in Michigan for helping the owner of a health care company — who had served prison time for fraud and identity theft — apply for two fraudulent loans.

In a January 2021 filing in the case, the prosecutor, Assistant U.S. Attorney Adam B. Townshend, said Shain had paid only $13,076 of the $1.8 million in restitution he owed.

Despite this, he spent more than $100,000 on two vehicles in 2019, the prosecutor said.

While awaiting sentencing, Shain told a woman that her ex-husband would have to commit some crimes to get money because, “I mean. . . that’s what I did,” according to the prosecutor’s memorandum.

A judge sentenced Shain to two years in prison in that case and fined him $40,000.