Ex-Frankel Associate Pleads Guilty

September 29, 2000

A former associate Martin Frankel has pleaded guilty to charges in Tennessee for his part in Frankel’s alleged plan to defraud insurance companies of millions of dollars.

John Hackney, 50, pleaded guilty Wednesday in Tennessee to federal conspiracy and money laundering charges, just one week after doing the same in Connecticut. He has also admitted to receiving more than $7.3 million from Frankel in exchange for his participation.

Under the federal charges, he could be sentenced to up to 40 years and fined up to $750,000. But he faces an additional sentence of up to 24 years in Tennessee under a plea agreement in which he admitted to two counts of theft by computer. That sentence would run concurrent with any federal sentencing. Federal prosecutors claim Hackney and others established Thunor Trust, which acquired a number of insurance companies and transferred their assets to a brokerage house owned by Frankel.

Frankel allegedly embezzled most of the money for his personal use and that of his associates. Hackney also admitted he received cash or had his expenses paid by Frankel over the past eight years.

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