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A former insurance agent owner was sentenced today to serve 27 months in prison. Gary Edward Hibbing of Grand Lake Investments and Insurance in Grove Oklahoma, was sentenced for implementing a fraudulent scheme that caused his clients to lose $505, 126. In addition to the prison sentence, United States District Chief Judge Gregory K. Frizzell ordered Hibbing to pay back the money in restitution.

Hibbing defrauded his victims through a scheme called “twisting” where an insurance agent convinces a client to surrender an existing annuity in exchange for a new one. There is usually a penalty for early termination of annuities, and the client often loses money while the agent makes money on new commissions.

Hibbing was indicted on August 12, 2015, and he pleaded guilty to two counts of wire fraud and two counts of unlawful monetary transactions on April 4, 2016.

The case was investigated by the IRS-Criminal Investigation and the Oklahoma Insurance Department’s Anti-Fraud Unit.