RALEIGH, N.C. — The unrepentant fraudster Reynold Eugene Mullen, 48, of Durham, was handed an 84-month sentence on Thursday for masterminding a $2.9 million scheme that swindled mortgages and pandemic relief funds.
In a stunning betrayal of the nation’s generosity, Mullen siphoned over $1.3 million in mortgage proceeds by doctoring credit reports and bank statements. His deceitful maneuvers didn’t end there; he also exploited Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds for an additional $1.6 million.
“This white-collar fraud on American taxpayers is stunning,” U.S. Attorney Michael Easley exclaimed. “We will fight for every penny to be returned to the public purse.”
Mullen’s criminal enterprise involved not only his own deceit but also that of his girlfriend, Tiffany Dawn Russell. Together, they used false payroll information and fraudulent tax returns to swindle their way into critical pandemic relief loans. The couple’s ill-gotten gains were funneled into the acquisition of property and Mullen’s plastic surgery.
“Mullen not only took advantage of aid programs intended for those impacted by the COVID-19 outbreak but also displayed a blatant disregard for victims of their scheme,” Internal Revenue Service Criminal Investigation (IRS CI) Assistant Special Agent in Charge Brian Thomas stated. “We remain vigilant in identifying and prosecuting such individuals.”
On May 25, 2022, Russell was sentenced to 63 months in prison for her role in the scam. Mullen’s sentence, handed down by U.S. District Judge James C. Dever III, is part of a broader investigation led by the Internal Revenue Service, Criminal Investigations, and the Federal Bureau of Investigation.
For further information on this case, court documents can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-33-D.
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Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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