Jimmy Ray Kelly Jr. duped clients into signing loan documents so he could commit bank fraud

Oregon Attorney General John Kroger today announced the conviction and sentencing of a former contractor to 3 years in prison for a racketeering scheme that involved duping homeowners into signing loan papers in order to defraud a bank.

A judge also required the former contractor to pay $64,000 in restitution to a bank and three Oregon homeowners.

“The Department of Justice is committed to investigating and prosecuting complex racketeering and homeowner rip-off schemes,” said Deputy Attorney General Mary Williams.

Jimmy Ray Kelly Jr. (DOB: 04/16/1960) was convicted of racketeering by a Clackamas County jury on June 18. Kelly ran a complex bank fraud scheme that bilked First Security Bank of Washington out of more than $80,000. He defrauded Washington and Oregon homeowners of more than $300,000.

Racketeering is a Class A felony.

Kelly, of the now defunct Northwest Home Source out of Lake Oswego, put homeowners at substantial risk by duping them into signing bank documents in order to obtain home improvement loans. In addition, Kelly would often take money up front for construction work and then vanish, leaving homeowners with loans they could not afford.

In addition to serving time in prison and paying restitution, Kelly cannot hold a contractor’s license or work as a contractor for 20 years.

The United States Marshal’s Fugitive Task Force was instrumental in Kelly’s arrest. Kelly had a plane ticket to Texas in-hand when the task force arrested him last year at the home of a relative.

Senior Assistant Attorney General Andrew Campbell prosecuted the case for the Oregon Department of Justice.

Attorney General John Kroger leads the Oregon Department of Justice. The Department’s mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.

Contact:

Tony Green, (503) 378-6002 tony.green@doj.state.or.us |