Policy: Law

Government seeks restitution of $7.7M

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News,Business,Law

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.

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