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"Artful" Dodger of Pension Fraud
There will be little satisfaction and much anger when some of Barry R. Stokes's former clients meet tomorrow in Nashville. Sure, Stokes has agreed to serve 14 years in prison for embezzling $16 million of their retirement funds. But many of his victims contend that he's still getting off too easily.
Stokes won't be there. He's been jailed since the end of 2006 awaiting trial on a 78-count indictment accusing him of embezzlement, wire fraud, mail fraud, and money laundering. He was scheduled to go to trial next month, but has agreed to plead guilty in return for a shorter sentence.
This doesn't sit well with many of the people who entrusted their 401(k) savings to Stokes, and now face the prospect of never being able to retire. Particularly galling ishow Stokes spent a big chunk of their hard-earned money: amassing a collection of some 200 Japanese woodblock prints.
Federal investigators tracked down his collection of prints squirreled away at his second home in Austin, Texas. Some of the art has been sold to satisfy creditors who invested their money in 1Point Solutions, the firm he founded. These include the Louisiana state retirement fund, Metro Nashville government, and employees of the Tennessee Democratic Party.
They'll be commenting, at the invitation of U.S. Attorney Edward M. Yarbrough, on the pending deal for Stokes to plead guilty to 29 counts of embezzlement and other charges. His deal could shave off some of the estimated 21 years in prison he could face if convicted by a jury. A trial had been set to begin Sept. 9.
In return for less jail time, prosecutors say, Stokes has agreed to repay as much as he can and to waive his right to appeal. He's also given up the woodblock prints, which could be worth anywhere from hundreds to millions of dollars, depending on whether he had a discerning eye for art.
by Elizabeth Olson
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