The former chairman of a company involved in one of the state’s largest-ever bankruptcies will be released from prison after serving one year for securities fraud.
The South Carolina Parole and Pardons Board voted 3-0 on Wednesday to allow 75-year-old Jack Sterling to be released from prison after serving almost one year of a five year sentence. Sterling was convicted in 2009 for his role in the collapse of Carolina Investors. He was Chairman of HomeGold Financial Inc., the parent company of the Easley-based investment firm.
About 12,000 people lost $275 million dollars when the company collapsed in 2003. HomeGold took control of Carolina Investors in 1995 and used investors’ money to make high-risk mortgage loans nationwide. However, the market began struggling in 1998 and within four years, HomeGold owed more to Carolina Investors depositors than the company was worth.
Under the terms of his parole, Sterling can have nothing to do with the financial industry, and must perform 200 hours of community service. He had been in prison since last April.