Co-Defendant in Barber Case Pleads Guilty
by October 18, 2013 4:14 pm 107 views
Brandon Rains, a Fayetteville real estate developer and co-defendant in the Brandon Barber case, pleaded guilty Thursday to lying to FBI and Internal Revenue Service agents, according to a report published Friday in the Arkansas Democrat-Gazette.
In July 2011, Rains told federal agents he was unaware of any off-the-book payments between buyers and sellers of real estate in Springdale’s Executive Plaza. However, Rains now admits he received a $100,000 payment that was not listed on the contract in 2008.
According to the FBI, this money was Rains’ portion of a kickback from a scheme involving him, former Fayetteville real estate developer Brandon Barber and three other co-defendants.
In exchange for Rains’ guilty plea, U.S. District Judge P.K. Holmes will dismiss charges against him for money laundering and conspiracy to commit bank fraud, according to the report.
Barber and Jeff Whorton, a Springdale businessman, both pleaded guilty earlier this year to conspiracy to commit bank fraud and money laundering.
Gary Combs of Springdale, the other co-defendant, died in August 2012. His attorney, David Fisher of Rogers, was also recently charged for conspiracy to commit bank fraud.
Whorton, Barber, Rains and Combs agreed to buy property in Whorton’s Executive Plaza and to apply for loans for more than the purchase price, according to the report.
Combs obtained a $2.75 million loan with First Federal Bank in 2008, and the group divvied up the extra cash, which totaled almost $1 million, according to the report.
Rains faces a maximum penalty of five years in prison and a fine of up to $250,000.
He, Barber and Whorton are awaiting sentencing.
Fisher is scheduled for trial Monday in U.S. District Court in Fort Smith.