Case Study: Brandon Barber's Attorney Convicted on Fraud Charges

Case: K Vaughn Knight

This case involved several individual which are:

1. K. Vaughn Knight - Brandon Barber's (debtor) attorney
2. Brandon Barber - the debtor (Arkansas real estate developer)
3. James' Van Doren - Barber's business associate
4. Jeff Whorton - Barber's business associate

This case started when Brandon Barber filed for bankruptcy. He committed bankruptcy fraud by concealing his asset. In concealing his assets, Barber received help from his business associates and his attorney. Barber later pleaded guilty to his role in schemes that provide false documents and information about loan and real estate to banks. On 31 July, 2013 he pleaded guilty to conspiracy to commit bankruptcy fraud, conspiracy to commit bank fraud and money laundering.

After Barber pleaded guilty, Jeff Whorton later in August pleaded guilty to conspiracy to inflate the value of real estate transactions in order to get bigger loans from bank. Then, Barber's business associate James Van Doren pleaded guilty to a single count of money laundering for helping Barber hide money from his creditors in Barber's bankruptcy case.

In November 2013, a jury in US District Court convicted K. Vaughn Knight, the attorney for Barber on 5 counts of money laundering, one count of conspiracy to commit bankruptcy fraud, bankruptcy fraud and money laundering.  The evidence showed that:

• Knight agreed with Barber to conceal a large sum of money by using his lawyer's trust account.
• Knight did not tell the Bankruptcy Court about those money.

The US Attorney concluded this case has always been about fraud. Knight's action has prevented honest, hardworking sub-contractors and creditors from having a chance to recover at least some money they were owed. 

Knight, 46 faces up to 5 years in prison and a $250,000 fine on each of the bankruptcy fraud and money laundering charges and 10 years in prison and a $250,000 fine on each of the money laundering charges.

Reference:
Mark, F. (2013). Brandon Barber Attorney Convicted on Fraud Charges. Arkansas Business, 30 (47), 7.