Mississippi State Auditor Shad White announced today that Ethel Cain, a Cleveland business owner, was found guilty of two counts of false statements and one count of wire fraud involving CARES Act stimulus monies.
Cain, the owner of Lifeline Financial Freedom Solutions (LFFS), illegally submitted grant applications on behalf of other businesses under the Mississippi Development Authority’s “Back to Business” award program.
MDA staff identified LFFS after dismissing many suspicious applications made by the company. Investigations indicated that Cain had submitted nearly $400,000 in potentially fraudulent grant applications, resulting in $38,500 in wrongly received cash.
“This was my office’s first case of arresting someone for COVID stimulus fraud,” Auditor White stated. “I’m thankful to the agents in my office and the prosecutors who worked to bring this case to a successful conclusion.”
A jury in Bolivar County Circuit Court returned a guilty judgment. We have not yet determined Cain’s sentencing date.
The State Auditor’s Office invites anybody with information regarding suspected fraud to report it by going to [www.osa.ms.gov] and clicking the red button, or calling 1-800-321-1275 during regular business hours.