A MAGISTRATE could be facing jail after being ordered to pay more than £360,000 relating to a mortgage fraud.

Mother-of-four Shanaz Hussain had forged her husband’s signature on several key documents during a bitter divorce.

Yesterday she was told to pay the cash back within six months or be jailed for three and a half years, after she was convicted of the fraud relating to her matrimonial home in Burnley.

The 39 year-old JP from Haslingden, is a former co-director of the Lincoln Group of Companies as well as a supporter of the Tehreek-e-Insaf party (Pakistan Movement for Justice), founded by ex-test cricketer Imran Khan, and said to be a pillar of the community.

At the Preston Crown Court hearing she was ordered to pay back the cash to Cheltenham and Gloucester Building Society in just six months as well as £8,403 in court costs.

If she fails to do so she will face three and a half years in prison.

Former Haslingden High School and Alder Grange, Rawtenstall pupil, Hussain was also warned that she may face civil proceedings against her by the building society for interest on the money.

Hussain was convicted in January at a Preston Crown Court trial of submitting a host of forged documents to secure the transfer of her matrimonial home, 163c Manchester Road in Burnley, from her former husband Mazhar.

The fraud was discovered by Mr Hussain’s solicitor John McNabb, of Burnley firm SFN, who raised the alarm while handling his client's divorce from the defendant.

Her fingerprints were later found on Land Registry, utility bill and passport forms, which had supposedly been signed by Mr Hussain and Ansar Amin, of Walker Preston Solicitors in Blackburn.

But Mr Hussain denied signing the papers, as did Mr Amin.

Hussain, who was found guilty of seven fraud offences, was given a 12-month prison sentence, suspended for two years. She was also ordered to complete 300 hours community service.

Speaking at Preston Crown Court yesterday Peter Birkett QC, for Hussain, said although she is ‘asset rich’ she is ‘cash poor’ as most of her wealth is tied up in property.

He said: “The divorce process is ongoing and as such there maybe a difficulty in accessing the money within the six month period as some assets are jointly held .

“My client will be co-operative and will do whatever she can to free up the money — however more time may be needed.”

Judge Christopher Cornwall said that an application could be made to extend the six-month payment period.

He said: “£360,000 is recoverable and is to be set aside as compensation for Cheltenham and Gloucester Building Society. A six-month period to pay will be given initially but as some of the assets are jointly held this may be extended.”

Hussain, who served on the Burnley, Pendle and Rossendale bench for six years until 2009 is no longer a magistrate.