Little Rock business executive Frank Whitbeck, 61, was sentenced to six years in prison today on his guilty plea to a count of mail fraud in embezzling from his insurance company. The prison sentence will be followed by three years of supervised release. He was sentenced by federal Judge Bill Wilson after a day of testimony over the amount of money lost by the insurance company.
He was also ordered to pay restitution of up to $3.7 million, a figure that will be finally computed by December of next year following a valuation of the insurance company. He was fined $12,000 and assessed a $100 special penalty.
He is to report to prison by 2 p.m. Dec. 1. He'll have to check regularly with the probation office before reporting. Federal prison officials will determine his prison assignment.
He'd pleaded guilty in May. Three other counts were dropped in exchange for the plea.
The case relates to Whitbeck's dealings with companies he owned, Signature Life Insurance and Winrock Grass Farms. Whitbeck was accused of diverting most of the assets of Signature Life to himself and other companies he controlled. He was accused of falsely describing loans to Winrock as residential mortgages.