Smiley's Father Claims Signatures On Loan Documents Not His

Smiley
Smiley

The father of former Arvest bank executive H. Dennis Smiley Jr. claims he didn't sign for loans taken out in the name of a holding company he has with his son.

H. Dennis Smiley Sr. said in two responses to lawsuits he didn't sign loan documents bearing his name.

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To read court filings in the suit against Smiley, go to www.nwaonline.com/d…

The responses were part of a flurry of legal filings this week over loans taken out by the Smileys and HDS Holdings.

Smiley Sr. and his son are co-defendants in several lawsuits over nonpayment of loans, including suits filed recently by Delta Trust & Bank and Bank of Fayetteville.

The elder Smiley contends in responses to the Bank of Fayetteville and Delta Trust suits that "an individual other than Henry Dennis Smiley Sr. signed his name without any knowledge by Smiley Sr., that the subject loan documents were executed nor any authority, express or otherwise, granted to any individual to sign his name."

A pair of suits this week challenged Arvest Bank's claim it didn't know or give Smiley Jr. permission to use his stock in the bank as collateral for loans. Arvest asked the court April 2 to take $551,755 in proceeds from Smiley Jr.'s stock and decide who gets the money. Arvest says as many as 19 banks may make claims on the proceeds.

Smiley Jr. was president and chief executive officer of Arvest Bank of Benton County until resigning March 13.

The elder Smiley is chairman of First State Bank of De Queen, another bank listed in Arvest's court filing.

So far two banks have come forward claiming first shot at the stock proceeds, and both produced documents they say back those claims.

Bank of Fayetteville contends a letter it has confirms it "holds first and primary assignment of the stock account" of Smiley Jr. The stock had a cash value of $299,812 on Jan. 9, 2012, the date on the letter. The letter appears to be on Arvest letterhead and signed by Euva Phillips, operations manager.

The Bank of Fayetteville states it wouldn't have loaned the money to Smiley Jr. without affirmation from Arvest the arrangement was OK. The suit also claims Smiley Jr. agreed not to grant any additional interest in his Arvest stock plan to anyone else.

Jason Kincy, Arvest spokesman, didn't respond to phone message or email requests for comment Friday afternoon.

Bank of Fayetteville claims Smiley Jr. owes it $479,177 and an additional $215,012 loaned to HDS Holdings. The bank also claims Smiley Sr., owes $42,006.

First National Bank of Fort Smith filed a similar suit Friday, claiming Smiley Jr. used the stock as collateral for a pair of loans totaling $196,285. The filing shows a letter dated Dec. 4 appearing to be signed by Chad Evans, executive vice president of Arvest, granting First National Bank of Fort Smith "first and priority security interest in the stock account held for Henry Dennis Smiley Jr."

A suit filed by First State Bank names Smiley Jr., Cynthia Smiley and her company, Design for the Home, as defendants and claims the Smileys fraudulently obtained three loans totaling almost $160,000.

The suit states "the Smiley defendants' personal financial statements were materially false, which were given by the defendants to First State Bank with intent to deceive First State Bank."

The couple's 2013 personal financial statement claimed they had $1.08 million in liabilities and $3.26 million in assets, according to the documents.

Also Friday, Simmons First National Bank sued Smiley Sr. and HDS Holdings for defaulting on loans of $88,716.

Delta Trust & Bank was the first bank to sue Smiley Jr. for defaulting on a loan. The bank filed suit March 25 claiming Smiley defaulted on the initial payment of a $245,126 loan he took out Feb. 20. The Delta Trust & Bank suit also names HDS Holdings and Smiley Sr., as co-defendants.

Neither the Federal Bureau of Investigation or the U.S Attorney's Western District of Arkansas would comment on whether they were investigating the matter.

NW News on 04/12/2014

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