Supreme Court disbars attorney for mortgage scam

JACKSON — The Mississippi Supreme Court has disbarred an attorney convicted with two other in a federal mortgage fraud scheme.

Kimberly A. Castle was one three people convicted in the case. The Supreme Court yesterday granted the Mississippi Bar’s petition for disbarment.

Prosecutors say Castle and the others bought distressed property in Hattiesburg, Petal, Laurel and Gulfport at low prices, got inflated appraisals and high mortgage loans and sold the property soon after buying it — a process called flipping.

Prosecutors say the defendants solicited victims to apply for mortgage loans in excess of the property’s value and pocketed the proceeds.

Castle and the others were convicted in 2007.

Castle, an attorney who the government said used her legal credentials to close the bogus transactions, was sentenced to two concurrent 48-month terms in jail, followed by five years of probation.

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