Judge Sentences Brandon Barber to 65 Months in Prison

Former Northwest Arkansas developer Brandon Barber was sentenced Tuesday to 65 months in prison and three years of supervised release.

The sentence was handed down at the federal courthouse in Fort Smith by U.S. District Judge P.K. Holmes. Barber, who pleaded guilty July 31, 2013, to three felony charges of conspiracy to commit bankruptcy fraud, money laundering and conspiracy to commit bank fraud, has been in the Washington County Jail since June 14, 2013.

He likely will be credited for that time served, according to officials.

Barber, 38, was arrested in New York by FBI agents on March 20, 2013, and faced 27 counts of various federal charges, including fraud and money laundering, all of which took place from 2005 to 2009 and were designed to defraud banks, creditors and the U.S. Bankruptcy Court.

Barber originally entered a plea of not guilty April 15, 2013, but pleaded guilty July 31 to three federal charges as part of a plea deal with federal prosecutors.

Barber has yet to be sentenced and has been behind bars at the Washington County jail since June, after U.S. Magistrate Judge Erin L. Setser found Barber had repeatedly violated terms of his home detention, which he had been under since his initial arrest.

Barber has been represented by Rogers attorney Asa Hutchinson III and his father, Arkansas gubernatorial candidate and former U.S. congressman Asa Hutchinson.

From June 2003 to October 2008, entities controlled by or affiliated with Barber secured more than $200 million in loans from various financial institutions

In the summer of 2006, Barber’s namesake company, The Barber Group, reached its peak when it had six projects — with a total estimated cost of $790 million — in various stages of development.

“The defendant’s efforts to deceive creditors, the Federal Bankruptcy Court, and others as to his true financial condition resulted in tremendous losses that struck at the heart of our local economy,” U.S. Attorney Conner Eldridge said in a statement. “As a result of this fraudulent conduct, businesses and hard-working individuals — including not only banks but also plumbers, roofers, architects, and others involved in the construction and development business — were not paid.  We will continue to work together to identify and prosecute fraudulent schemes and do all we can to ensure that businesses are protected from such conduct.”

According to Eldridge, the status of four other defendants involved in the case is as follows:

James Van Doren pleaded guilty on August 23, 2013, and is set to be sentenced on November 3.

Jeff Whorton pleaded guilty on August 26, 2013, and is set to be sentenced on November 5.

Brandon Rains pleaded guilty on October 17, 2013, and is set to be sentenced on November 6.

K. Vaughn Knight was convicted of eight counts of bankruptcy fraud and money laundering on November 18, 2013. The jury verdict was overturned on June 10 and the case is currently on appeal.