Arvest Bank Settles With 18 Dennis Smiley Creditors

by George Waldon  on Friday, Aug. 8, 2014 7:58 am  

Dennis Smiley

Several Arvest staffers erroneously signed off on documents authenticating Smiley’s pledge of the stock plans, assuming the paperwork he provided to the lenders was genuine.

Smiley resigned from Arvest on March 13. The first lawsuit generated by the scandal, filed by Delta Trust & Bank, hit Benton County Circuit Court 12 days later.

The allegations of fraud extend to Smiley’s purported net worth that helped induce banks to make him loans.

In court filings, First State Bank of Lonoke questioned the legitimacy of financial statements submitted by Smiley and his wife, Cynthia.

Their 2011 financial statement indicated the couple had net worth of more than $1.6 million. According to the bank, the Smileys listed nearly $2.5 million in assets versus $805,046 in contingent liabilities.

A 2012 financial statement reflected a net worth of $728,326, with assets of nearly $2.5 million and liabilities of more than $1.7 million.

A financial statement for 2013 claimed net worth of nearly $2.2 million, with assets of more than $3.2 million and liabilities of about $1.1 million.



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