Siblings plead guilty in loan fraud case

From Staff ReportsNovember 26, 2008 

— A brother and sister pleaded guilty Monday to creating fake student loan applications that netted them $340,000 from Chase bank.

Melissa Renee Heggie, 29, of Grimesland, and her brother, Marvin R. Heggie, 27, of Raleigh, pleaded guilty in U.S. District Court to one count each of conspiracy to commit wire and mail fraud, aiding and abetting wire fraud, aiding and abetting mail fraud, and aggravated identity theft, according to the U.S. Attorney's Office.

They were indicted in September, along with Travis S. Hunter and Derrick King.

From June 2007 to March 2008, the Heggies were involved in a scheme to defraud Chase by submitting fake student loan applications, prosecutors said.

The Heggies recruited 14 people to provide their Social Security numbers and other identifying information by telling them they could make some money by applying for a loan. The applications were submitted to Chase online.

The applications contained false information, including the individual's status as a college student. After all of the paperwork was complete, Chase mailed checks to the applicants at an address used by the Heggies, prosecutors said.

The Heggies would then contact the applicants, and they would all cash the checks.

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