UPDATE: Jack Sterling Will Be Released From Prison

10:32 AM, Mar 20, 2013   |    comments
Jack Sterling (photo courtesy of WSPA-TV)
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COLUMBIA, S.C. (AP) - The former chairman of Carolina Investors is being released from prison.

Parole and Pardons Board spokesman Pete O'Boyle says the board voted Wednesday to allow Jack Sterling to be released. O'Boyle said it will take about a week to process his release.

O'Boyle said the board ordered that Sterling have nothing to do with the financial industry. He also must perform 200 hours of community service.

The 75-year-old executive started serving his five-year sentence for securities fraud last April.

Sterling was convicted in 2009 for his role in the collapse of Carolina Investors. Sterling was chairman of HomeGold Financial Inc., the parent company of Carolina Investors. Six executives were convicted.

About 12,000 people lost $275 million in the companies' 2003 collapse, one of the biggest bankruptcies in state history.

Following the collapse of the embattled Carolina Investors after a securities fraud investigation, officials released a list of the indicted executives:

Jack Sterling, former HomeGold chairman and chief executive indicted on three criminal counts including securities fraud and conspiracy. 

Ronald Sheppard, former chief executive officer of HomeGold. Sheppard was convicted of securities fraud, conspiracy and obtaining property by false pretenses and sentenced to 20 years in prison.

Karen Miller, former HomeGold chief financial officer. Miller pleaded guilty to one count of conspiracy in September 2005. Her sentencing has been deferred.

Anne Owen, former Carolina Investors vice president. Owen pleaded guilty to eight counts of securities fraud in July 2005. She was sentenced to 10 years, suspended to 90 days with five years probation, home detention and electronic monitoring for 18 months.

Earle Morris Jr., former Carolina Investors chairman. Morris was convicted in November 2004 of 22 counts of securities fraud. He was sentenced to 44 months in prison and is out on bond. The state Supreme Court is considering his appeal.

Larry Owen, former Carolina Investors president. Owen pleaded guilty in July 2004 to 22 counts of securities fraud and sentenced to eight years in prison.

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