1

Wesley Meredith Benefits Fraud

In the Summer of 1996 Wesley Meredith Made a Medicaid Application Attesting that he
Made Less than $15,600 Annually but within Months of That Application he Bought a
Home That Would Have Required Demonstrating $49,000 in Income to Get a Mortgage:

June 1996, Meredith had his Wife Apply for Medicaid When She Became Pregnant with
his Second Child. According to Merediths second wife Elizabeth, when she became pregnant
with their son in early 1996, he had her apply for Medicaid to cover the health care costs of the
pregnancy and birth. She had recently had COBRA benefits from her previous job ran out and
Meredith ran his own business Cardinal Landscaping. (Medicaid Card of Elizabeth Meredith
(as XXXX maiden name), Effective from 5/18/96; Medicaid Card of Son, Effective from
5/18/96) Is there a user number or something else we can cite on the cards?

To Qualify Meredith had to Attest to Having Less than $15,600 in Joint-Income.
According to the poverty guidelines set forth by the US Department of Health and
Human Services in 1996, to qualify for Medicaid the Merediths would have had to attest
to making less than $15,600 for a family of four. (US Dept. of Health and Human
Services, The 1996 HHS Poverty Guidelines accessed 9/2/14; Federal Register, Vol.
61, No. 43, March 4, 1996, pp. 8286-8288)

Additionally, Meredith had his Wife Apply for Special Supplemental Nutrition for
Women, Infants, and Children (WIC) Program, Meant for Pregnant Women and
Mothers in Poverty to Provide Basic Nutrition to their Children. Meredith had his
wife apply for WIC supplemental nutrition while she was pregnant and nursing during
the same time period. The WIC program would have the same poverty requirements as
Medicaid. (WIC Checks made out to Elizabeth XXXXX, US Dept. of Health and
Human Services, The 1996 HHS Poverty Guidelines accessed 9/2/14; Federal Register,
Vol. 61, No. 43, March 4, 1996, pp. 8286-8288)

In July 1996, Meredith Purchased a Lot Valued at $147,150, to Receive a Loan he Would
Have Attested to at Least $49,000 in Annual Income Per Federal Regulations. To qualify for
a mortgage of the home in 1996, Meredith would have had to demonstrate $49,000 in income.
With an income-debt ratio then set at 28 percent by the FDIC, Freddie Mac and Fannie Mae, and
assuming an interest ratio of 65% on $147,150, would mean a monthly payment of $1,200.
Requiring annual income just over $49,000. According to a Chicago Tribune article from earlier
in 1996:

If you are shopping for a house, you will have to get used to the term "debt ratios."
These are your debt-to-income ratios. And lenders frequently use them to figure out how
much house you can afford.
- The first ratio is 28 percent. This dictates that your monthly
home mortgage payment--including loan principal and interest, taxes and home
insurance--must not exceed 28 percent of monthly gross income.
Let's say you and your spouse have a combined monthly income of $5,000. With
the 28 percent debt-to-income ratio, your monthly mortgage payment should not
be more than $1,400 ($5,000 X 28 percent).
2
- The second ratio is 36 percent. This requires that your mortgage payment plus
all long-term debt (credit cards, student loans, car loans, etc.) should not exceed
36 percent of your monthly gross income.
For a couple with a dual monthly income of $5,000, their total monthly mortgage and
long-term debt payments cannot surpass $1,800 ($5,000 X 36 percent).

(XXXX Millbrook Drive, Fayetteville for $147,500 dated July 29, 1996, Cumberland County
Register of Deeds; Chicago Tribune, 2/28/96; FDIC Mortgage Loan Prequalifications, access
9/2/14)

And That is to Purchase Just One Property

At the Time Merediths Wife was on Medicaid and he Attested to Making Less than
$15,000 per year, he Owned as Many as Five Real Estate Properties, Including Two
Purchased Within a Month of Their Federal Application Claiming Poverty.

5 Real Estate Properties Owned by Meredith at the Time his Wife was on Medicaid:

Property Date Purchased Value at Purchase
Millbrook Dr. 7/11/96 $147,150
2318 Ireland Dr. 6/28/96 $22,000
Reilly Rd. Paid off 3/7/96 $85,000
Northview Drive 2/18/94 $107,000 (VA loan)
Barton Landing (condo) 9/27/93 xxxx
NOTE: Properties in ITALICS purchased while wife collected Medicaid claiming the
family had less than $15,600 in combined income.
(Cumberland County Register of Deeds, See Records Attached)

Meredith Also Took Out Two Equity Loans While Family is on Federal Benefits, One for
$15,000 Almost Equal to Federal Poverty Level was Paid Off While Claiming Poverty.

Equity Loans Taken Out in Year Merediths Family was On Medicaid and WIC:
Property Date of Equity Loan Value of Loan
Northview Drive 4/11/96 $15,000 (paid off 5/29/96)
Millbrook Drive 8/29/96 $16,000
(Cumberland County Register of Deeds, See Records Attached)

Though these equity loans would be excluded from poverty requirement, they would drive up
Merediths Income-Debt Ratio meaning he would have had to demonstrate more income to
qualify for loans than the estimated minimum of $49,000.


3
Background

Appendix A: Timeline

Date Action Source
4/4/90 Purchases Track 4 Reilly Rd. for $85,000
Cumberland Register of Deeds (attached)
11/25/91
(9/27/93)
Purchases Bartons Landing Condo (685-4)
for XXXX
Cumberland Register of Deeds (attached)
3/20/93 Marries Elizabeth XXXXX
Cumberland Clerk of Court
5/26/93 Kings Grant
Cumberland Register of Deeds (attached)
2/18/94 Purchases Northview for 107,000 through
VA Loan
Cumberland Register of Deeds (attached)
3/7/96 Pays off Tract 4 on Reilly Rd. ($85,000)
Cumberland Register of Deeds (attached)
4/11/96 Equity Loan on Northview for $15,000
Cumberland Register of Deeds (attached)
5/18/96 Wife Medicaid Activated
Medicaid card for Elizabeth XXXX
(Wesley) dated xxxx
5/29/96 Satisfied 4/11/96 Northview loan: $15,000
Cumberland Register of Deeds (attached)
6/28/96 Purchases 2318 Ireland Dr. for $22,000
Cumberland Register of Deeds (attached)
7/11/96 Purchases Millbrook Dr. in VanStory
Hills for $147,150
Cumberland Register of Deeds (attached)
7/29/96 Sells Northview Dr. for $170,000
Cumberland Register of Deeds (attached)
8/29/96 Equity Loan on Millbrook Dr. for $16,000
Cumberland Register of Deeds (attached)
9/4/96 Son XXXX Born

9/24/96 Forms WBM, LLC
NC Secretary of States Office
12/5/97 Millbrook Dr. sold for $165,000
Cumberland Register of Deeds (attached)
12/3/97 Pays off 8/29/96 loan of $16,000

1/8/98 Elizabeth Wesley gives IRS(?) notice she did
not sign 8/29/96 loan

3/2/98 Divorces Elizabeth XXXX
Cumberland County Clerk of Court
NOTE: Items in BOLD occurred while family known to be on federal benefits: Medicaid
and/or WIC

Appendix B: Index of Attachments

Table I. Charts of Borrowing Regulations
I. Federal Truth on Lending and FDIC requirements debt/income ratio
a. 28%
b. Include taxes, insurance, principal and interest
II. BB&T regulation requirements debt/income ratio

Table II. DSS Regulations
I. Required proof of income at 125% poverty level in 1996 $17,000
I. Required periodic updates

Table III. Documents from DSS
I. Multiple Medicaid Cards stating eligible from 5/18/96 thru 11/5/97
II. 18 WIC checks dated 8/10/96 thru 2/10/97

Table IV. Real Estate Transactions
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I. Vanstory Hills deed for Northview Drive for $107,0000 2/17/94
II. Deed of Trust on Northview Drive for equity line for $15,000 4/11/96
III. Deed for Ireland Drive for $22,000 cash 7/2/96
IV. Deed for Milbrook Drive for $147,500 dated July 29, 1996
V. Deed of Trust on Millbrook Drive for equity line $15,000 dated 8/2/96
VI. HUD statement on Millbrook 12/5/97
VII. Affidavit of Liens Millbrook 12/5/97
VIII. Deed 685-4 Bartons Landing 685-4 11/25/91
IX. Deed of Trust Reilly Road Industrial Park $85,000 4/4/90
X. Satisfaction Deed of Trust Reilly Road Industrial Park 2/2/96
XI. Warranty Deed 2318 Ireland Drive $21,000 cash 7/2/96
XII. Deed of Trust Bartons Landing $ 42,000 9/27/93

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