News and Press Releases

Founder of Kansas-Based Franchising Business
Pleads Guilty To Misleading SEC



June 27, 2013

KANSAS CITY, KAN. – The founder of a Kansas-based insurance franchising business has pleaded guilty to filing an annual report with the Securities and Exchange Commission that contained misleading statements about the now-defunct company’s finances, U.S. Attorney Barry Grissom said today.

Robert D. Orr, 59, Denver, Colo, pleaded guilty to one count of making false statements in a report to the Securities and Exchange Commission. In his plea, he admitted that while he served as founder and non-executive chairman of the board of directors of Brooke Corporation, the company filed a 2007 annual report (Form 10-K) that presented a more financially robust position for Brooke Corporation’s investment in Brooke Capital Corporation than was supported by the actual financial conditions within the company. Orr knew that the report omitted material facts including the specific number of failed Brooke Capital Corporation franchise locations and the exact or total amount of financial assistance being provided by Brooke Capital Corporation to under-performing franchises.

Co-defendant Leland Orr is set for trial Feb. 24, 2014. Robert Orr is set for sentencing Oct. 7. The parties have agreed to recommend a sentence of three years probation and a fine of $48,000.

Grissom commended the FBI and Assistant U.S. Attorney Mike Warner for their work on the case.



Return to Top

USAO Homepage
USAO Briefing Room
Stay Connected with Twitter
Project Safe Childhood

Project Safe Childhood

Civil Rights

Civil Rights Initiatives.
Toll Free Number

Law Enforcement Coordinating Committee

Training and seminars for Federal, State, and Local Law Enforcement Agencies.

Victim Witness Assistance

Making sure that victims of federal crimes are treated with compassion, fairness and respect.