When Brooke Corporation declared bankruptcy in late 2008, hundreds of insurance franchises were forced out of business. 

More than 200 jobs were lost in Phillipsburg, which once counted Brooke among its largest employers

On Thursday, Robert D. Orr, 59, formerly of  Smith Center pleaded guilty to one count of making false statements in a report to the Securities and Exchange Commission. In his plea, he admitted that while he served as founder and non-executive chairman of the board of directors of Brooke Corporation, the company filed a 2007 annual report (Form 10-K) that presented a more financially robust position for Brooke Corporation’s investment in Brooke Capital Corporation than was supported by the actual financial conditions within the company. Orr knew that the report omitted material facts including the specific number of failed Brooke Capital Corporation franchise locations and the exact or total amount of financial assistance being provided by Brooke Capital Corporation to under-performing franchises.

Co-defendant Leland Orr of Phillipsburg is set for trial Feb. 24, 2014. Robert Orr is set for sentencing Oct. 7. The parties have agreed to recommend a sentence of three years probation and a fine of $48,000.