LITTLE ROCK — The state Insurance Department has revoked the license of a Fort Smith insurance agent who has been charged in federal court with fraud and money laundering.

LITTLE ROCK — The state Insurance Department has revoked the license of a Fort Smith insurance agent who has been charged in federal court with fraud and money laundering.


In a news release Monday, the department said it held a hearing Jan. 26 on a complaint filed against Samuel Bowron Phillips alleging that he moved four fixed indexed retirement annuities worth $127,748 belonging to a Fort Smith couple from their company to Paradigm Financial Partners of Barling.


The couple said they never received any policies or documentation from Paradigm and they have no access to or knowledge of the location of their retirement investment.. The transaction resulted in a loss of values in the annuities of $27,260, they alleged in the complaint.


The Insurance Department issued an emergency suspension order against Phillips on Dec. 7. It said it determined from its investigation that Paradigm was never an insurance agency and that the secretary of state’s office had revoked its license.


Phillips was charged last week in federal court with 11 counts of mail fraud, one count of wire fraud and three counts of money laundering. Federal prosecutors allege that Phillips opened checking accounts in the name of Paradigm Financial Partners and one other company.


The Insurance Department’s Criminal Investigation Division assisted with the federal investigation into Phillips, providing investigators with information including checks deposited into Phillips’ checking accounts and bank surveillance videos.


"Preying upon the retirement funds of hardworking Arkansans by any insurance agent in our state is unacceptable," state Insurance Commissioner Allen Kerr said in a statement Monday.


The department said it encourages anyone who has done annuity business with Phillips and has concerns to call its Consumer Services Division at (800) 852-5494.