Posted: Mar 21, 2014 2:36 AM
Updated: Mar 21, 2014 2:38 AM
GULFPORT, Miss. (AP) A Biloxi attorney has pleaded guilty covering up evidence connected to a scheme to defraud two banks and the U.S. Bankruptcy Court.
The government says in a news release that it is seeking restitution on behalf of the victims in the amount of $7.7 million.
Stephen Richard Colson entered the plea Wednesday in U.S. District Court in Gulfport.
Federal prosecutors say Colson say the count to which Colson pleaded guilty was part of a larger scheme wherein he used funds generated in new real estate closings to pay off earlier closings.
The scheme was discovered after the acquisition of a title insurance company for which Colson served as agent, by a successor company.
The successor company was forced to pay 54 claims from lenders, borrowers, and sellers.