New Arrest In Mortgage Scheme

The charges were brought against the Meridian and Collinsville women on Friday, with seven counts each against them, including conspiracy in mortgage fraud. The announcement comes at a time when fraudulent lending practices are being brought to light, and more and more strict penalties are being allotted. The case states that the first woman, owner and operator of a mortgage company in Meridian, conducted fraudulent business from January 1999 to December 2004, with the second woman being an employee of the firm.

The scheme consisted of the two women preparing and submitting false documents, including loan applications and sales contracts, to ensure mortgage approval from lenders. The approval resulted in commission to the two women, ranging from $1800 to $4400. The charges also state that the brokers fees that the owner charged were inflated, a severe allegation when it coincides with falsifying documents. The company was fined more than $10,000 and the owner’s license was suspended for three years. The investigation came after customer complaints were filed against this mortgage company.