Posted 10/23/2008 06:08 pm
Updated 2 years ago
Little Rock businessman Frank Whitbeck was sentenced to six years in prison for fraud today in federal court.
Whitbeck, 61, also was ordered to pay more than $3.7 million in restitution and a $12,000 fine. The restitution is connected with assets he illegally diverted from Signature Life Insurance Co. of America to another of his ventures, Winrock Grass Farm, and for his personal use.
His actions left the insurance company insolvent and sent the firm into receivership. In a May 8 plea agreement, Whitbeck avoided a trial by pleading guilty to one count of mail fraud.
He was indicted on several counts of fraud related to his submitting false reports to the Arkansas Insurance Department and his attempts to hide his illegal activity.
Whitbeck portrayed the transfer of money as secured loans from Signature Life to Winrock. However, the debt was unsecured.
His sentence includes three years of supervised release. Whitbeck was ordered to report to the Bureau of Prisons on Dec. 1.
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