Sheppard Release Rescinded Because of Mistake

The state parole board on Thursday backtracked on its decision to release Ronnie Sheppard who, as CEO of Columbia-based HomeGold Financial, was involved in one of the state's biggest bankruptcies, the Associated Press reports.

According to the AP report, the Department of Probation, Parole and Pardon Services admitted Thursday it failed to properly notify state Attorney General Alan Wilson of Sheppard's parole hearing. A new hearing has been set for Jan. 18, the AP reports.

In 2007, a Lexington County jury found Sheppard guilty of securities fraud, conspiracy, and obtaining property under false pretenses. He has served four years of a 20-year sentence, according to the report.

HomeGold filed for bankruptcy in 2003 after the $275 million collapse of the parent company, and its subsidiary Carolina Investors.

HomeGold Financial, Inc. is a specialty finance company primarily in the business of originating and selling conforming and sub-prime first- and second-lien home mortgages, and issuing notes payable and subordinated debentures to investors through Carolina Investors.