Mississippi State Auditor Shad White announced today that Ethel Cain, a Cleveland business owner, was found guilty on two counts of false representations and one count of wire fraud in connection with CARES Act stimulus funds.

Cain, the owner of Lifeline Financial Freedom Solutions (LFFS), used her company to fraudulently submit grant applications on behalf of other businesses in an attempt to secure funding from Mississippi’s “Back to Business” grant program, administered by the Mississippi Development Authority (MDA).

MDA representatives flagged LFFS after denying several questionable applications submitted by the company. Investigations revealed Cain had submitted nearly $400,000 in potentially fraudulent grant applications, resulting in $38,500 in improperly awarded funds.

“This was my office’s first case arresting someone for COVID stimulus fraud,” Auditor White said. “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 the guilty verdict. Cain’s sentencing date has not yet been set.

The State Auditor’s office encourages anyone with information about suspected fraud to report it by visiting [www.osa.ms.gov](http://www.osa.ms.gov) and clicking the red button or calling 1-800-321-1275 during regular business hours.