SQRL Fuel Stations CEO Joseph Blake Smith Faces Over $10M in Legal Claims

Financial disputes associated with old and new business ventures led by Joseph Blake Smith are stacking up in Pulaski County Circuit Court.

The legal actions revolve around limited liability companies affiliated with SQRL Fuel Stations, where the Little Rock businessman is CEO. Smith, 40, couldn’t be reached for comment.

Two lawsuits claim more than $3.5 million for unpaid real estate commissions and fuel. A third suit claims $60,745 owed on two convenience store purchases.

The fourth and most recent of the court filings is an ongoing collection effort on a 2019 judgment against Smith for fraud and breach of fiduciary duty that has climbed to more than $7.2 million.

His former partners in Oklahoma oil and gas lease investments are seeking a court order to collect any cash or assets that Smith has in a quartet of limited liability companies: SQRL Service Stations, Standard Development Co., SQRL Investment Strategies and SQRL Wholesale.

Holding the judgment against Smith are three limited liability companies controlled by Little Rock businessman Stephen LaFrance Jr. and Chris Reeder of Dallas: Bold Energy III and its two wholly owned affiliates, Crixus Resources and Crixus Resources II.

To date, the plaintiffs have collected $194,380 on an original judgment of $7 million that continues growing with the interest on the unpaid balance. They received that lump sum on May 21, 2019.

A year later, Smith surrendered his law license in advance of the Arkansas Supreme Court Committee on Professional Conduct taking action to disbar him.

That occurred after the committee informed Smith that it had sufficient proof that he engaged in criminal conduct and in conduct involving fraud, deceit, dishonesty or misrepresentation.

Smith agreed that the committee likely had sufficient proof of those two violations of the rules of professional conduct in his dealings with the investment groups led by LaFrance and Reeder.

New Grievances

Last month, North Little Rock’s Coulson Oil Co. sued to collect $518,819 for unpaid fuel delivered to 14 SQRL outlets in Arkansas and one in Millington, Tennessee. All of the fuel deliveries cited in the Nov. 3 complaint were made in June except for one made to Millington in March.

The defendants are SQRL Holdings LLC, Standard Develop-ment Co. and its managing member, Adam Lusthaus of Boca Raton, Florida. Lusthaus also is listed as president of SQRL operations on the company’s website.

Built through acquisition, the chain began making the scene during the past couple of years. Featuring a three-tone blue squirrel face logo, the SQRL brand reflects an acronym of its espoused corporate values of service, quality, relationships and loyalty.

SQRL by State

The SQRL website shows 120 locations in 10 states. But elsewhere on the site, the company puts the tally at “more than 350 locations throughout 14 states.”

SQRL identifies 125 outlets in 10 states on its website locator map, with Arkansas leading the way at 44. Elsewhere on the site, the company puts the tally at “more than 350 locations throughout 14 states.”

In its Oct. 24 complaint, South-ern States Realty Group LLC of Groveland, Florida, claimed it was owed more than $2.9 million for work helping sell convenience stores. In addition to Smith, the named defendants are Standard Development Co., SQRL Service Stations, SQRL Syndicate Fund I LLC and Standard Service Stations LLC.

“They’ve been non-responsive every other time we’ve tried to reach out, which is why we had to go this route,” said Nels Billsten, broker at Southern States. “We need to protect our interests.”