Brandon Barber Fraud Investigation Examines Bank Records

by Arkansas Business Staff  on Monday, May. 30, 2011 12:00 am  

The FBI has subpoenaed at least one northwest Arkansas bank's records for any of its dealings with former Fayetteville developer Brandon Barber.

Barber's Chapter 7 bankruptcy, Whispers readers likely will remember, was denied discharge in November by U.S. Bankruptcy Judge Ben T. Barry. That order came as a result of a complaint filed by Legacy National Bank of Springdale, one of the creditors listed in Barber's roughly $48 million bankruptcy filing.

Legacy claimed Barber transferred or concealed funds belonging to him "within one year before July 31, 2009, the date Barber filed his bankruptcy petition, with the intent to hinder, delay, or defraud his creditors," according to the order.

Barry ruled in Legacy's favor in some instances, determining Barber concealed and transferred hundreds of thousands of dollars by forming a limited liability company called NWARE Investments, and with the help of longtime friend James Van Doren, a New York resident.

"Now we will turn our attention to collection from Barber - and perhaps, those who helped him," Legacy's attorney, Marshall Ney of Rogers, said following Barry's ruling.

Ney declined comment when asked by Arkansas Business in December if he had made a criminal referral against Barber. Ney also declined comment last week.

It is a federal crime for a debtor to hide assets from the bankruptcy trustee.

 

 

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