Ex-insurance agent charged with fraud

<br>SHAWNEE, Okla. (AP) _ A former insurance agent faces 444 fraud counts for allegedly bilking people out of more than $12 million in pyramid scheme stretching across at least five states. <br><br>Merl

Thursday, March 4th 2004, 12:00 am

By: News On 6

SHAWNEE, Okla. (AP) _ A former insurance agent faces 444 fraud counts for allegedly bilking people out of more than $12 million in pyramid scheme stretching across at least five states.

Merl William Hickman Sr. is expected to surrender Thursday to Pottawatomie County authorities, District Attorney Richard Smothermon said.

Hickman, of Meeker, faces up to 10 years in prison on each count. He could not be reached for comment on Wednesday.

Most of the investors live in the Shawnee area, but there are victims in at least four other states. Many were retirees who invested much or all of their savings and were promised annual returns of 15 percent to 20 percent.

A court-appointed receiver told investors not to expect more than a 10 cents return for every dollar they entrusted to Hickman, 55.

Money collected from recent investors was used to make interest payments to earlier investors, investigators allege. The Hickman family spent the remaining money on cars, boats and jewelry.

``They lived a pretty good life,'' Smothermon said.

Kim Adams and her husband transferred $396,000 in life savings to Hickman at his Shawnee insurance agency Dec. 1. They lost their investment when the Oklahoma Securities Department obtained a court order shutting down The Hickman Agency on Dec. 17.

``It's just a nightmare and there's nothing we can do about it,'' Adams said. ``My husband worked for OG&E for 30 years and he was counting the days until his retirement. He was our sole income ... and that job's gone.''

A separate charge was filed for each time an investor placed money with Hickman's insurance agency, Smothermon said. The alleged scheme operated out of a Shawnee storefront for more than seven years.

``There's some indication at the very beginning there was an attempt at a valid investment, but in later investments they didn't try to keep up that pretense,'' Smothermon said.

A federal investigation of Hickman could lead to charges that include tax evasion, wire fraud or securities violations, Smothermon said.

A private meeting with victims is set for March 12 at the Heart of Oklahoma Exposition Center in Shawnee to discuss the case and gauge how they feel about a possible plea bargain, Smothermon said.

Adams and other victims were upset when Hickman, who had been charged with a single criminal count, was released last month from jail after agreeing to wear an electronic ankle bracelet that allowed authorities to monitor his whereabouts.

Smothermon said he understands victims' anger but notes that the criminal case has the potential to be one of the most voluminous ever prosecuted in Oklahoma.