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Parties Close to Final Settlement Over ‘Scooter’ Stuart Money

1 min read

The final paperwork is nearing completion on a settlement agreement that will boost the equity capital at Little Rock’s One Bank & Trust by $6.9 million.

Sources tell Arkansas Business that the money will come from $14.9 million held by the U.S. Treasury after seizing cash and other assets two years ago from Layton “Scooter” Stuart, the former chairman, president and CEO of the bank, and his estate.

The remaining $8 million will be split evenly between Stuart’s family and the U.S. Treasury, which provided $17.3 million in TARP funds that helped keep the bank solvent.

The $6.9 million infusion would increase One Bank’s capital to $19.6 million, barring any operational losses in the third quarter. The bank has lost $12.8 million during the past three years as total assets have declined to $326 million.

Most of the money held by the government came from a life insurance payout by John Hancock Life Insurance Co. after Stuart died on March 26, 2013. Stuart allegedly diverted about $2.3 million of the TARP funds to repay the bank for funds he used to pay personal expenses.

No repayment of the TARP debt has occurred since the first quarter of 2012.

In addition to the U.S. Treasury, two other creditors have significant stakes in the well being of One Bank.

BHL Financing LLC, led by trucking heiress Johnelle Hunt, holds a $14.7 million claim against the bank’s holding company, OneFinancial Corp., as do investors holding $8 million worth of trust-preferred securities.

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