Former Mississippi Real Estate Investor Charged with Fraud

A federal grand jury has returned an indictment against a Mississippi real estate investor in connection with an allegedly fraudulent mortgage loan scheme. According to Stan Harris, U.S. attorney for the Southern District of Mississippi, Earline Y. Rawls is accused of devising a scheme that began in August 2006 and continued through March 2007, involving the purchase of four residential properties in Madison and Hinds County. The indictment alleges that the primary objective of the conspiracy was to induce approval, funding and distribution of more than $1 million in loan proceeds through the deceptive submission of fraudulent representations to Merchants and Farmers Bank, Community Bank of Mississippi and BancorpSouth. Prosecutors say Ms. Rawls, doing business as Heavenly Homes, manufactured fraudulent documents indicating business revenues of $1.3 million and a profit of $271,530 from January 2006 through November 2006. Ms. Rawls, who could not be reached for comment, allegedly submitted this information in furtherance of her scheme with non-indicted co-conspirators.