Man Steals Over $1M in Loan Proceeds

Allison Tussey —  September 15, 2009 — 5 Comments

Earline Y. Rawls has been indicted by a federal grand jury in connection with a fraudulent mortgage loan scheme in Mississippi. The indictment charges Rawls with one count of conspiracy to commit bank fraud and six counts of bank fraud.

According to the indictment, Rawls devised a scheme which began in August of 2006, and continued through March 29, 2007, and involved the purchase of four residential properties in Madison and Hinds County, Mississippi. The indictment alleges that the primary objective of the conspiracy was to induce approval, funding and distribution of over $1,000,000.00 in loan proceeds through the deceptive submission of fraudulent representations to Merchants and Farmers Bank, Community Bank of Mississippi and BancorpSouth. The indictment further alleges that Rawls, doing business as Heavenly Homes, manufactured fraudulent documents indicating business revenues of $1,301,689 and a profit of $271,530.00 from January 1, 2006 through November 20, 2006. Rawlsallegedly submitted this information in furtherance of her scheme with unindicted co-conspirators.

United States Attorney Stan Harris, Federal Bureau of Investigation Acting Special Agent in Charge Stephen F. Gomez, Federal Deposit Insurance Corporation – Office of Inspector General Special Agent in Charge Thomas C. McDade, and Madison/Rankin County District Attorney Michael Guest announced the federal grand jury indictment against Rawls

This mortgage fraud investigation is a joint effort led by the Federal Bureau of Investigation, and the Federal Deposit Insurance Corporation, and was assisted by other agencies in the Jackson Financial Crimes Task Force, including the Internal Revenue Service, the United States Postal Inspection Service, Housing and Urban Development – Office of Inspector General, Mississippi Department of Banking and Consumer Finance, Mississippi Real Estate Commission and Appraisal Board, the Madison Police Department, and the Madison-Rankin County District Attorney’s Office.

Stephen F. Gomez, Acting Special Agent in Charge of the FBI in Mississippi applauded the work of the Jackson Financial Crimes Task Force, stating, “By combining the assets and resources of our respective agencies, the Task Force is extremely well equipped to address this threat to the financial well-being of the citizens and financial institutions in our community.”

Michael Guest, the Madison/Rankin County District Attorney, said, “Our office is pleased to have the opportunity of working with the United States Attorney’s Office and other state and federal authorities in bringing perpetrators of mortgage fraud in Madison County to justice. The fraudulent representations made to lenders in many instances may be viewed as significantly contributing to the high rate of foreclosures and economic uncertainty in Mississippi. We will continue efforts to prosecute these cases whenever and wherever wrongdoers are discovered. “

U.S. Attorney Stan Harris commended the federal, state, and local agencies who are participating in the Jackson Financial Crimes Task Force. Harris said, “This is a good example, on the anniversary of September 11th, of the excellent work that law enforcement agencies can accomplish when they partner together.”

United States Attorney Stan Harris stressed that this indictment represents an accusation only and all defendants are entitled to a presumption of innocence until proven guilty in a court of law.


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Allison Tussey

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5 responses to Man Steals Over $1M in Loan Proceeds

  1. I don’t think that they are aware of the fraud that went on (National City Mortgage). Guess they had been glad to give the loan.

  2. Annerose, did the people you are talking about get in any trouble? Did the mortgage company report the fraud? Some of the lenders do not want to let anyone see there dirty laundry, especially those that got bail out money. I would have more respect for a lender that said we are responsible and we are going to try to fix it, but they pass the buck. How can you fix something that you deny being even a little responsible?????

  3. I have to agree with Ms Orr. How can you approve a loan for 1 Mil. when someone makes $ 75,000 a year combined income? I worked for an independent contractor, who build his home having the construction expenses mostly paid by the business. Then they submitted construction billings to the Mortgage holder to be reimbursed and pocketed the money. Take a guess, they are now in foreclosure.
    Business will show no profit and they became instantly wealthy. How many people have done this type of fraud and now the taxpayers can bail them out. Who say’s crime don’t pay?

  4. I do not agree with Lynne. Investigations cannot happen until they are reported by the lender. The FBI needs the information. There are so many reports of Fraud, that I am sure they had to priortize. How and what the guidelines would be I don’t know. I work defaulted loans and what has amazed me is the LENDERS who approved people that did not have a job, no social security number, no credit lines not even rental agreement. These people got approved for 400,000 homes, most did not make any payments. I know that brokers were allowed to approve loans using stated income but you would think that they reviewed some of the loans. Lenders are the ones that I hold accountable.They turned their heads to what was going on with the brokers.

  5. First, I have no clue who this person is in the story, nor do I really care, however, what makes me angry is the great press the Feds are getting over these investigations. So, I’m curious with the vast amount of mortgage fraud that went on for the past 6 years or so, why is there no one at the US Attorney or FBI offices getting terminated or investigated? It is obvious they ignored the problem and allowed it to grow for years. If there should be 100% accountability on both ends of this story. I believe if they would have done their jobs in the first place the fraud would be limited. Who is investigating this??? All these fraud arrests make the FBI, US Attorney, SEC, etc look foolish in the publics eye.

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