Opinion ID: 1664552
Heading Depth: 1
Heading Rank: 11

Heading: Deposit slip for $150,000 into the account of FSA

Text: Mr. Hale denied that Mr. Rutherford ever asked for the $150,000 back and maintained that the $150,000 check to FSA on July 6 was payment for FSA stock as evidenced by the June 27 stock purchase agreement. Based primarily on Mr. Rutherford's testimony, the State asserted below that NSLIC's letter of July 6, which stated that the company's capital deficiency had been cured, was false or misleading and thereby violated section 23-60-109, because the capital deficiency had in fact not been corrected as the letter indicated. In essence, the State charged that Mr. Hale had placed the $150,000 provided by Mr. Rutherford in the account of NSLIC long enough to state in the July 6 letter that the capital deficiency had been cured, and then he returned the money to Mr. Rutherford. The investigation leading up to Mr. Hale's prosecution and conviction began when, by a letter dated September 21, 1993, Mr. Niemann notified the Arkansas Insurance Department that the impairment had not actually been cured on July 6, as the earlier letter had indicated, because the funds were subsequently invested in a security I believe is a non-admissible asset. [1] Based on that notification by Mr. Niemann, the Insurance Commissioner ordered an examination, and the Arkansas Insurance Department petitioned for appointment of a receiver for NSLIC on September 27, 1993. NSLIC was subsequently placed into a receivership under the auspices of the Insurance Commissioner.