Judgment Rises in '$10B' Fraud Case

Judgment Rises in '$10B' Fraud Case
Scott Smith

 A U.S. District Court judge increased a judgment last month in favor of a New York investor against an Arkansas man who boasted about having connections to former President Bill Clinton.

The new judgment amount that Nicholas Gordon, vice president of Zion Capital Ventures Inc. of New York, has against Scott Smith of Bryant?

$1.466 million.

If you recall, Gordon claimed in his civil lawsuit that he was duped into investing with Smith, who back in 2011 was senior managing partner of SKB Partners LLC of Bryant. In addition to the Clinton connection, Smith also had produced a special note from the Federal Reserve Bank that purported to give him access to $10 billion, according to Gordon’s lawsuit, filed in 2015 in federal court in Little Rock.

U.S. District Judge James M. Moody Jr. ruled in September that Smith and SKB had taken $450,000 from Gordon and Zion Capital and “had no intent to honor the contract.”

Moody later awarded Gordon and Zion $450,000 plus interest and nearly $16,000 in attorney’s fees. The plaintiffs were represented by the Hancock Law Firm of Little Rock. Gordon’s attorney, Charles “Dan” Hancock, said Smith was found liable not only for breach of contract but for fraud and conversion. Hancock asked the judge in December to add $1 million in punitive damages to the judgment as punishment, which he did.

Moody noted in his amended judgment on Jan. 24 that Smith didn’t respond to Gordon’s request for damages.