Arkansas Razorbacks Football Coach John L. Smith's $40 Million Mistake

by Mark Friedman  on Monday, Nov. 5, 2012 12:00 am  

“I’m always looking for high-quality in good locations,” he told the business journal in 2007.

Great Recession

The next year, of course, the Great Recession reached full force. But that didn’t stop Canfield, who was pushing forward with plans to bring 450 home lots to the Louisville market.

In June 2008, he told the Louisville Business Journal that he decided to continue the projects because of the success of his other developments.

“I’ve got a lot to sell,” Canfield said. “But we’ve been really busy. … I’m cautiously optimistic.”

And he noted that there was interest in his developments.

“Good houses in good developments in good locations always sell,” Canfield said in the 2008 article. “The market is good — not great like 2005 — but it is good.”

But the housing market wasn’t good.

In 2008, home sales in Jefferson County plummeted 23 percent to 11,369. The financial strains of Canfield’s LLCs were beginning to show.

“Although the LLCs Operating Agreements make no ex-press mention of capital contributions beyond initial contributions, Canfield, as manager of the LLCs, made numerous and substantial capital calls upon the LLCs’ members in the past several years,” Smith said in his Aug. 13, 2011, affidavit.

Smith said he paid Canfield’s LLCs $15,000 in December 2008.

Dr. Juneja said in court filings that he contributed more than he should have to keep the LLCs going. He didn’t return a call seeking comment.

 

 

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