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When Whibbs failed to return a $150,000 investment made by [[Dan and Roberta Peppler]], the couple contacted the State Attorney's Office, which began the investigation that revealed the scope of Whibbs's wrongdoings.
On [[October 5]], [[2006]] Whibbs was disbarred by the Florida Supreme Court for five years and charged with two counts of grand theft of over $100,000 and another charge of mortgage fraud. On [[May 7]], [[2007]], felony racketeering was added to the charges.<ref>[http://pnj.com/apps/pbcs.dll/article?AID=/20070508/NEWS01/705080330/1006 "Whibbs faces fourth charge], ." ''Pensacola News Journal'', May 8, 2007.</ref>
Whibbs pleaded no contest on [[July 3]]. On [[August 17]], he was sentenced to four years in state prison by [[1st Circuit Court|Circuit Court]] Judge [[Jan Shackelford]]. Whibbs's attorney, [[Barry Beroset]], indicated he had no plans to appeal.<ref name="sentenced">"Whibbs Jr. sentenced." ''Pensacola News Journal'', August 18, 2007.</ref>
