Madison attorney faces federal fraud charges | Crime

JACKSON, MS (WLBT) - A Madison attorney is facing federal fraud charges following a criminal investigation by the FBI and FDIC.

Michael E. Earwood appeared today before U.S. Magistrate Judge F. Keith Ball on a federal indictment charging him with one count each of bankruptcy fraud and bank fraud, announced U.S. Attorney John Dowdy, Acting U. S. Trustee Henry G. Hobbs, Jr. of Region 5, and FBI Special Agent in Charge Daniel McMullen.

According to a press release from the U.S. Attorney, the indictment charges Earwood with devising a scheme to obtain money from a business partner by saying the money would be used to maintain property owned by the business Kinwood Capitol Group. According to the indictment, Earwood then used the Bankruptcy Court to conceal the scheme from his business partner.

Count two of the indictment charges Earwood with bank fraud. According to the indictment, Earwood devised a scheme to defraud a bank by pledging loans property he didn't own as collateral.

The Federal Bureau of Investigation and the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG) conducted the criminal investigation.

If convicted of both counts, Earwood faces a maximum penalty of 35 years in federal prison, according to the press release.