The Fayetteville lawyer accused of helping former developer Brandon Barber hide millions of dollars in assets from authorities during a bankruptcy was found guilty of all charges Monday in federal court in Fort Smith, according to court documents.
A jury, in its second day of deliberations, found K. Vaughn Knight guilty of eight federal criminal counts. Knight’s fraud and money laundering charges carry a maximum penalty of 140 years in prison and $4 million in fines, according to court documents.
Knight was found guilty of five counts of money laundering, along with one count each of bankruptcy fraud, conspiracy to commit bankruptcy fraud and making false statements to authorities, according to court documents.
Knight is the last of Barber’s co-defendants to be tried in connection with the $200 million fraud scheme. Barber pleaded guilty over the summer to three separate criminal fraud counts, leaving the other 24 to be dismissed because of a deal reached with prosecutors. He faces a maximum of 45 years in prison, although he has not yet been sentenced.
Rogers attorney David Fisher was found not guilty in federal court last month for his alleged role in the federal fraud case. Jeff Whorton, of Whorton Construction in Northwest Arkansas, and alleged co-conspirator James Van Doren pleaded guilty in deals with prosecutors over the last few months.
Knight’s trial began two weeks ago and was turned over to the jury for deliberations on Friday. The jury was unable to reach a verdict by about 5 p.m. Friday, so they were dismissed until Monday morning.
Less than a decade ago, Barber, then in his 20s, was one of the most sought-after developers in the Northwest Arkansas. He founded the Barber Group in Springdale and tackled several high-profile area projects such as the Legacy Building and the Bellafont condominiums in Fayetteville. He also proposed the 15-story Divinity Hotel in Fayetteville in 2006.
Court records show that as the money flowed, Barber took on massive debt, taking out millions of dollars in loans from local banks. Litigation from the financial institutions ensued, and years later, several court cases by banks and area entities against Barber remained unresolved, according to Washington County Circuit Court records.
In debt and collecting lawsuits, Barber filed for Chapter 7 bankruptcy in 2009, but was accused of hiding his assets from creditors. A year later, he was arrested on suspicion of driving while intoxicated for the second time in recent years, police records show. His development company also filed for bankruptcy, and he moved to New York.
