A former rising star of Northwest Arkansas' real estate boom will be released from prison Tuesday.
After being incarcerated at a prison camp in Pennsylvania, Brandon Barber has been transitioning back to freedom at a halfway house in Brooklyn, N.Y., according to the Federal Bureau of Prisons.
Barber, 41, has spent the past three and a half years either in the Washington County jail or in the federal prison system.
When he is released Tuesday, Barber will have 72 hours to report to a probation officer, according to the amended judgment from Chief U.S. District Judge P.K. Holmes III, who is based in Fort Smith. Barber will be on supervised release for three years.
A Jonesboro native, Barber had a roller-coaster career as a real estate developer in Fayetteville before the economy crashed in the recession, which began in late 2007.
Barber filed bankruptcy in 2009, claiming no assets and $53 million in debt, which the bankruptcy judge refused to discharge.
Barber was arrested in New York City in 2013 on 27 federal charges and pleaded guilty to three of them -- conspiracy to commit bankruptcy fraud, money laundering and conspiracy to commit bank fraud.
Barber admitted he had concealed $1,287,937 from the U.S. Bankruptcy Court, according to a plea agreement with federal prosecutors. That total included $30,000 that was in a briefcase that Barber delivered to an accomplice to hide the cash from his creditors.
Barber also admitted he lied about the value of real estate to get inflated bank loans, and he directed a Fayetteville attorney to use a trust fund account to help him hide money.
Barber agreed to help the government find any assets he may have.
Barber didn't return a telephone call or other messages seeking comment.
One of his former attorneys, Asa Hutchinson III of Rogers, did respond with an email: "I know Brandon will be very grateful to be back with his family, but doubtful he is interested in media coverage."
Barber was also represented by Asa Hutchinson II, who withdrew as his counsel when he was elected governor in 2014. The governor's spokesman, J.R. Davis, didn't respond to calls and emails seeking comment from the governor about the Barber case.
With access to easy loan money, Barber made a name for himself with plans to develop $750 million worth of luxury, mixed-use commercial/residential projects in Northwest Arkansas.
Barber's father-in-law was John Ed Chambers III, who is president of Chambers Bancshares Inc. of Danville.
Barber started off small, building homes with loans from Chambers Bank, then he launched into a series of high-end condominium, hotel and retail ventures with backing from financial institutions in Arkansas and elsewhere.
Part of The Barber Group's brand-building was its reputation for flashy, expensive parties. The company's 2005 Christmas party included 1,200 guests and entertainment by Kool & the Gang. Barber was at the center of a crowd of young and trendy people, many of whom worked for him.
But as the boom went bust, Barber began having personal troubles as well as financial. He racked up more than $200,000 in gambling debts at Las Vegas casinos and was twice arrested for driving while intoxicated. His wife, Keri Chambers Barber, filed for divorce in May 2009.
Besides being the daughter of John Ed Chambers, she is also a niece of Dallas Cowboys owner Jerry Jones.
Barber moved to New York City in 2010 to be closer to their two children. Initially, he waited tables at a restaurant on Manhattan's Upper East Side to bring in some money, Barber said in a 2011 interview.
After the dust settled from the bankruptcy and criminal charges, federal prosecutors said Barber owed about $16.2 million -- $7.5 million to Legacy Bank in Springdale, $8.2 million to Enterprise Bank of St. Louis, and $550,000 to First Federal Bank of Fayetteville.
Barber was ordered to pay only $450,000 in restitution to First Federal Bank.
In an order concerning restitution, Holmes wrote that Barber didn't plead guilty to defrauding Legacy and Enterprise banks, but he did plead guilty in a kickback scheme involving First Federal, so the judge didn't order Barber to pay restitution to Legacy and Enterprise.
Marshall Ney, an attorney representing Legacy National Bank, said Barber is still on the hook for the $7.5 million owed to his client.
"He has a judgment against him that he was not able to discharge in bankruptcy," Ney said. "From our standpoint, we have our civil judgment and the bankruptcy discharge was denied so Legacy does still have substantial debt that is collectible against him."
One of the largest monuments to Barber's real-estate empire is the seven-story Legacy Building that looms over Dickson Street in Fayetteville.
Construction of the Legacy Building cost about $17 million. Legacy National Bank filed a foreclosure suit in January 2008, claiming ownership of the luxury condominium complex in payment for outstanding mortgages, and a Washington County circuit judge granted the bank an $18.72 million judgment six months later.
The Legacy Building was sold for $11.25 million at a foreclosure auction in November 2008. The only bidder was Legacy National Bank.
At the time of the auction, only seven of the 37 condos had been sold, but now only three are for sale, said Jana-Wrenay Elkins, the listing agent for Lindsey & Associates.
Barber was sentenced to five years and five months in prison, getting credit for 19 months he served in the Washington County jail while his case wended through federal court. The government had requested leniency in sentencing because Barber assisted in the prosecution of five accused co-conspirators.
Barber apparently is getting out early because of good behavior.
During his supervised release, Barber will have to report regularly to a probation officer and follow Holmes' order, which included standard provisions regarding felons: commit no crimes, possess no firearms and don't unlawfully possess or use a controlled substance.
"If he's not following the judge's orders, the probation officer has a direct line to the court," said Dewaine Allen, chief deputy U.S. marshal for the Western District of Arkansas.
During his sentencing hearing in 2014, Barber, appearing in court in orange jail coveralls, apologized to his family, friends, bankers and the Northwest Arkansas community for his behavior that he said "compromised my character, reputation and integrity, maybe for the rest of my life."
In a 2011 interview with the Arkansas Democrat-Gazette, Barber said he hoped he's not remembered for his financial and criminal troubles.
"I hope the last few years are a footnote in my obit," he said in 2011. "If there is any positive thing that came out of the past five years -- and there have been some positive and some negative -- then my kids are it."
Karon Reese, a New Orleans real estate agent, got to know Barber when she lived in Fayetteville.
"Brandon was one of many developers who got caught up in the speculative boom of new projects in Northwest Arkansas, a craze in which bankers lent money too easily and carelessly," Reese said. "Many developers lost everything -- their homes, their families, community respect, as well as everything they owned. People who were once flying high were devastated. Some took their lives.
"Brandon made mistakes, and he's paid for those mistakes. But I think some of the responsibility for what took place belongs to bankers, greedy bankers who made big bucks on the backs of naive individuals. What I know of Brandon is his unwavering commitment to his family and his success in turning his life around while incarcerated. We stayed in touch, and his journey was beautiful, although tough, and very inspiring."
During the 2011 interview, Barber said the sheer size and relative anonymity of New York City gave him a chance to start over without too much of his past holding him back. But the felonies will remain on his record.
Metro on 02/19/2017