Former Oklahoma insurance agent sentenced for wire fraud
Ponca City Now - August 18, 2016 9:54 am
TULSA, Okla. (AP) – A former insurance agent in northeastern Oklahoma has been sentenced to more than two years in prison after pleading guilty to two counts of wire fraud and two counts of money laundering.
Gary Edward Hibbing was also ordered to pay more than a half-million dollars in restitution to his former clients. Hibbing owned Grand Lake Investments and Insurance in Grove.
Federal prosecutors accused Hibbing of defrauding his clients through a scheme called "twisting," where an agent convinces a client to surrender an existing annuity in exchange for a new one. The client is charged an early termination fee and the agent earns a commission.
Hibbing was sentenced Wednesday to 27 months in prison. In his plea agreement, Hibbing admitted that his clients lost a total of $505,000 in fees.