A Forsyth County man was arrested by local authorities last week and charged for allegedly operating as a mortgage lender without the proper licensing under state law.
Kenneth Edward Neil, 60, owner of KSN Enterprises LLC, was taken into custody at his home on Chattahoochee Lane at Lake Lanier’s southern end on Wednesday, Aug. 28, a Forsyth County Sheriff’s Office spokesperson said on Thursday.
On July 16, the Georgia Department of Banking and Finance finalized a cease and desist against KSN Enterprises and Neil, stating that it had “obtained evidence” that the company had “engaged in residential mortgage lending” without a license, in direct violation state law.
Neil has been charged by the Forsyth County Sheriff’s Office for allegedly violating OCGA 7-1-1002, which states that businesses or individuals in the state of Georgia are prohibited from acting directly or indirectly as a mortgage broker or lender, unless they are licensed through the Nationwide Mortgage Licensing System and Registry (NMLS).
Violating OCGA 7-1-1002 and conducting business as a mortgage lender without a license is a felony in the state of Georgia, according to a spokesman for the Georgia Department of Banking and Finance.
Detectives with the Forsyth County Sheriff’s Office reportedly began investigating Neil in May after a Forsyth County resident came forward to authorities stating that her mortgage company, KNS Enterprises LLC, was refusing payments on her mortgage and had begun foreclosure proceedings on her property.
The woman also stated that she had discovered that neither Neil nor his company, KSN Enterprises LLC, were licensed to write or service mortgages, and that KSN Enterprises LLC was not registered as a business with the Georgia Secretary of State’s Office.
After his arrest on Aug. 28, Neil was briefly held in the Forsyth County Jail before being released under bond.
When contacted by the FCN, Neil declined to comment.