By Ken Alltucker
Enquirer staff writer

A Springdale mortgage firm has circulated home loan offers using the name of an unlicensed loan officer who admitted his role in a $1.9 million buy-low, sell-high mortgage scam.

Ohio Department of Commerce records show that John Todd Killinger hasn't been a licensed loan officer since 2002. But his employer, Keystone Mortgage, earlier this month mailed a home-loan offer with Killinger listed as the company's contact person.

The solicitation urged a Hamilton homeowner to call Killinger about an "interest rate reduction" offer. The solicitation spelled out three loan scenarios, including an "interest-only" option for a $100,000 loan with a 3.5 percent interest rate and fixed payments of less than $300 a month.

State law forbids mortgage pros from soliciting home loan business if they aren't licensed loan officers.

Killinger pleaded guilty last week to federal charges of bank fraud, conspiracy and income tax evasion in connection with his role in a real estate fraud known as property flipping. He also admitted that he failed to report income of more than $400,000 from 2000 through 2002.

At a court hearing, a federal judge agreed that Killinger should not be taken into custody on condition that he return to court, cooperate with investigators and agree not to commit more crimes.

Killinger no longer works as a loan officer, according to his lawyer, Paul Laufman.

"My understanding is that Mr. Killinger has no intention or is continuing in any way operating as a mortgage broker," Laufman said.

Killinger's name is still listed on Keystone Mortgage's voice mail system. He didn't return a phone message left at his Keystone Mortgage office, and other Keystone officials didn't return phone calls.

Ohio Department of Commerce records show that Killinger was briefly licensed as a loan officer in 2002 after a state licensing law was enacted. The license was revoked after he failed to complete a knowledge test within 90 days of getting the license. He never reapplied.

State regulators intend to "look into" Killinger's actions to determine whether any administrative action is warranted, according to spokesman Pieter Wykoff.

Keystone Mortgage is owned by Jonathon Warbrick and Eric Winkler.

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E-mail kalltucker@enquirer.com