Brandon Barber wants to hold onto his life insurance policy for his children.
The former northwest Arkansas real estate developer urged U.S. District Court Judge P.K. Holmes III to reconsider his order that calls for Barber’s life insurance policy to be liquidated. The cash surrender value of $9,500 would be used to chip away at the $450,000 he owes in restitution to First Federal Bank.
“It is now [Barber’s] understanding that if this occurs, the life insurance policy would be canceled,” Barber’s attorney, Joel Johnson of Fort Smith, said in his motion, filed July 22. Barber “needs to keep this policy in effect for the benefit of his children.”
Instead, Barber, 39, proposes to borrow $9,500, which will be used in place of the insurance proceeds.
The motion didn’t say where Barber would get his hands on the money, and Johnson declined to comment.
The U.S. Attorney’s Office hadn’t filed its response as of Thursday morning.
Barber is serving the balance of his 65-month sentence in the federal prison in Lewisburg, Pennsylvania. He is scheduled to be released in February 2017.
Last July, Barber pleaded guilty to one count each of conspiracy to commit bankruptcy fraud, money laundering and conspiracy to commit bank fraud.