Hickman gets 8 years, son 5 years |
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November 23, 2004 –
OKLAHOMA CITY – Several investors of The Hickman Agency watched Monday as a U.S. district judge sentenced a Meeker father and son to serve federal prison time for swindling Shawnee and area investors of $8.5 million.
Merl William "Bill" Hickman Sr., 55, and his son, Merl William "Billy," Hickman Jr., 34, appeared before U.S. District Judge Tim Leonard. Both pleaded guilty in June to federal charges stemming from a fraudulent investment scheme at their Shawnee insurance agency. With a sob in his voice, Hickman Sr. apologized to investors before being sentenced to 97 months -- eight years -- with the Federal Bureau of Prisons. "I'd like to say how sorry I am for the sorrow ... for the loss to the good people," he said. "It was never my intent to hurt people." Hickman Sr., who said he wasn't making excuses for what he did, said the investment "got out of hand," but he always "held the good people in high regard." And if he gets the chance, Hickman Sr. said, he will pay them back. "I'm so very sorry for the harm I've done," he added, his voice trembling as he faced the judge. Hickman Sr. said he regrets the pain caused to his wife and family. Appearing in a red jail jumpsuit, Hickman Sr. then listened to Judge Leonard's sentencing. "I have letters from family members who care about you greatly ... they give some insight to your character," the judge said, showing a small sheaf of letters. The judge then pulled out a much larger stack of letters from investors. These letters outline "loss of their entire life savings," the judge said. "It's a sad and tragic day for you and your family," Judge Leonard said, especially when "victims put their trust and faith" in you. Because of "overwhelming loss and suffering," Judge Leonard gave Hickman Sr. the maximum sentence. He will begin serving his time immediately. After a brief pause, Hickman Jr. entered the courtroom for his case. When given the chance to speak, Hickman Jr. shook his head "no." "The real tragedy is the victims were your friends, your neighbors ... church members who developed a trust in you," Judge Leonard said. For those who lost life savings and retirement funds, many are having to go back to the workforce in their late 60s because they have "little or nothing left." Investors "not only lost money, they lost trust in their fellow man -- that has tragic consequences," he added. Hickman Jr. received the maximum sentence of 60 months -- five years -- with the Federal Bureau of Prisons. Hickman Jr., whose met his probationary obligations while awaiting sentencing, has 35 days to report. Defense attorney Gary James asked for Hickman Jr. to have until Jan. 10 to turn himself over to U.S. marshals. As quiet "nos" from investors rippled through the courtroom, Judge Leonard ordered Hickman Jr. to report by noon Dec. 27. Both father and son were ordered to pay restitution of $8,561.299.92. Both requested to serve their time at the federal prison in El Reno. Judge Leonard said he would recommend the request, but said its unlikely both can serve in the same facility. Once court was in recess, a few of Hickmans' family members left the courtroom, then investors flowed into the hallway of the federal courthouse. Investors Terry and Mollie Miller of Yukon weren't too happy that Hickman Jr. has 35 more days of freedom. "I don't understand why he gets to spend Christmas with his family ... many investors will be working Christmas," Terry Miller said. "I think he ought to be in jail." The couple invested with The Hickman Agency based on a friend's referral. They "lost too much for someone to steal," and said this experience still affects them. "It's hurt our faith in other people," Terry Miller said. As far as Hickman Sr.'s comments during sentencing, Terry Miller said he believes Hickman was trying to scam the judge. "It's just an old man trying to get to heaven," Miller said. Other investors seemed relieved, and some were curious to hear from Stephen Moriarty, the court-appointed receiver who is liquidating assets of the Hickman family. So far, about $900,000 has been collected through liquidation of boats, jewelry, cars and other items, he said. Disbursement is pending on court action as well as the sale of Hickman family land near Meeker. Moriarty still hopes to get investors a 5- to 10-cent return on the dollar. Robert McCampbell, U.S. Attorney for the Western District, said he was pleased with Monday's proceeding and his office plans to aggressively prosecute those who prey on Oklahoma investors. "Protecting victims from this kind of fraud is one of the most important things we can do," McCampbell said. "I'm excited ... this is a terrific outcome to vindicate victims. It's also a very effective enforcement mechanism against people who commit investor fraud." Several agencies played a role in the federal investigation, including the FBI, the Oklahoma Department of Securities, IRS, and the Pottawatomie County District Attorney's office. District Attorney Richard Smothermon, who is prosecuting the Hickmans on local charges, also appeared in federal court Monday with Assistant U.S. Attorney Susan Dickerson Cox. She prosecuted the case at the federal level. The case first began to unfold Dec. 17, 2003, when officials shut down The Hickman Agency and seized assets. Court records indicate about 160 investors lost more than $8 million in the investment scheme since 1999. As part of the Ponzi scheme, investors were promised returns up to 20 percent, but no money was ever invested. Instead, funds from later investors were used to pay off earlier investors. Prosecutors allege the rest was spent to fund a lavish lifestyle of boats, cars, trips and jewelry.
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