A woman from Southaven, Mississippi, named as Paula Sharice Nelson who is also known by the names of Paula Mason and Paula Kimmons, was charged March 12, 2009 with three counts of tax evasion, money laundering, mail fraud, and bankruptcy fraud. Subsequently, she pled guilty to a count of income tax evasion and mail fraud.

According to the indictment, Paula Nelson devised a scheme to fraudulently acquire mortgage loans for real estate properties throughout Memphis, Tennessee by using false information to financial institutions. She was also said to be involved in a property flipping scheme where she purchased several foreclosed HUD homes in which she sold to purchasers at inflated values. Nelson executed this scheme from April 2000 until September 2005 and involved 14 properties in Memphis.

The evidence presented on the trial also said that Paula Nelson deliberately did not include her income from these sales on her federal income tax returns.

Paula Nelson is scheduled to be sentenced on January 28, 2010 and is expected to face up to 35 years imprisonment and pay as much as $1,250,000 fine.