Ex-Carolina Investors exec Sterling starts term

COLUMBIA, S.C. (AP) — The former chairman of Carolina Investors has begun serving a five-year prison sentence for securities fraud.

The state Attorney General’s office said Jack Sterling reported to prison at around noon Monday.

The 74-year-old former executive had been free on bail since deciding to appeal his 2009 conviction. The state Supreme Court last week rejected a request to reconsider its rejection of his appeal.

About 12,000 people lost $275 million in the companies’ 2003 collapse, one of the biggest bankruptcies in state history.

Sterling was chairman of HomeGold Financial Inc., the parent company of Carolina Investors. He joins five other executives of the two companies who were convicted after the firms went under.

Former HomeGold CEO Ronald Sheppard is serving a 20-year prison sentence.