Two former employees of Direct Mortgage Corp. have filed a federal lawsuit accusing the company and its chief executive of fraud, breach of contract and failing to pay wages, including overtime and commissions.

Brooks Kelly and Jason Harris filed the complaint Feb. 20 in the U.S. District Court for the District of Utah against Direct Mortgage and its CEO, James (Jim) Beech.

The lawsuit seeks more than $750,000 in damages, plus interest, attorneys’ fees and punitive damages. The suit came five days before LenderMac Holdco LLC agreed to acquire the Utah-based company.

Kelly, a Texas resident, was hired in June 2025 as director details ⇒

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