Founder of Kan.-Based Brooke Corp. Pleads Guilty

4 years 2 months 3 weeks ago Friday, June 28 2013 Jun 28, 2013 Friday, June 28, 2013 10:29:05 AM CDT June 28, 2013 in Your View
By: Associated Press

KANSAS CITY (AP) - The founder of the failed Kansas-based insurance franchising business Brooke Corp. has pleaded guilty to providing misleading information in a federal securities filing.

The U.S. attorney's office says 59-year-old Robert D. Orr of Denver entered the plea Thursday. He admitted that while he was chairman, the company submitted a 2007 annual report that made its finances appear stronger than they actually were. Prosecutors say Orr knew the report didn't include the specific number of failed Brooke Capital franchise locations or the amount of money being spent to prop up struggling franchises.

Brooke was founded in the northwest Kansas town of Phillipsburg in 1986. It set out to provide insurance services for small-town banks to sell to their customers. Eventually, it moved to Overland Park, Kan., and went public in 2003.

 

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