Cynthia Smiley, the wife of former Arvest Bank executive Dennis Smiley Jr., filed Chapter 7 bankruptcy on Thursday, listing $2.3 million in debts and $34,000 in assets.
Cynthia Smiley made the filing in the Western District of U.S. Bankruptcy Court in Arkansas. Co-debtors listed in the filing are her husband; HDS Holdings LLC; her father-in-law, Dennis Smiley Sr.; and her defunct home decorating business, Design for the Home LLC.
The document describes Cynthia Smiley as a real estate agent and decorator with monthly income of about $2,400. She disclosed gross income of $19,535 so far this year.
The filing says Design for the Home closed in March, the same month her husband resigned as CEO of Arvest Bank in Benton County.
Dennis Smiley Jr. has since been at the center of several lawsuits by Arkansas banks and a criminal investigation for loan fraud. The former executive repeatedly pledged his interest in Arvest Bank Group’s stock purchase and stock option plans as collateral on a string of loans far exceeding the cash value.
A series of loans, estimated to involve $4.5 million and sometimes involving questionable signatures and documents, is under criminal investigation. No criminal charges have been filed against Dennis Smiley Jr.
In September, 18 lenders reached a settlement with Arvest and were dismissed from the legal battle over the banker’s assets. The action leaves only Signature Bank of Fayetteville and First State Bank of De Queen as potential claimants.
In her Chapter 7 filing, Cynthia Smiley listed 18 creditors, including banks and credit card companies, holding unsecured claims. Among them are:
- First State Bank of De Queen: $350,000 for debt of her defunct company, Design for the Home. Her father-in-law is chairman of FSB.
- First Federal Bank of Harrison: $180,599 for debt of Design for the Home.
- Arvest Bank: $179,079 for a debt consolidation loan secured by stock in First State Bank of De Queen. Dennis Smiley Sr. owns the stock, worth about $100,000.
- Arvest Bank: $80,000 for debt of Design for the Home.
- BOKF of Tulsa, doing business as Bank of Arkansas: $151,934 for debt of HDS Holdings LLC.
- First State Bank of Russellville: $146,425 for debt of Design for the Home.
- Signature Bank of Arkansas of Fayetteville: $140,000 for debt of Design for the Home.
- First State Bank of De Queen: $125,000 for debt of Design for the Home.
- Integrity Bank of Mountain Home: $120,000 for debt of Design for the Home.
The filing also notes that the couple sold their home at 56 Champions Blvd. in Rogers. First Security Bank of Searcy filed a foreclosure lawsuit on the 3,160-SF home in the gated Pinnacle neighborhood in August.
The home had been on the market for $649,000. Cynthia Smiley’s filing said the home sold in September for $550,000 to Shannon E. Letts of Rogers. Arvest, which held the first and third mortgage, received $305,811; First Security, which held the second, received $216,702.44.
Since the sale, Cynthia Smiley says she’s moved into a home at 3602 Legacy Lane in Rogers. The 2,700-SF home is owned by northwest Arkansas commercial real estate businessman John David Lindsey, through his Link & Will LLC. Cynthia Smiley said she’s being allowed to live there without paying rent or utilities. The filing does not indicate where her husband is living.
The filing also showed that in January, the couple gave Crystal Bridges Museum of American Art in Bentonville a $5,000 cash donation.
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