SPRINGDALE -- First Western Bank of Booneville is the latest financial institution to try and claim a portion of Dennis Smiley's Arvest stock proceeds.
The bank claims Smiley and HDS Holdings, the holding company he has with his father, owe $196,360 on a pair of loans issued February 2011 and November 2013.
Smiley used his Arvest stock as collateral for the loans, something Arvest said he wasn't permitted to do. First Western's filing in Benton County Circuit Court on Friday is in response to an Arvest filing on April 2 asking the court to take $551,755 in proceeds from Smiley stock and decide who gets the money. Arvest stated as many as 20 banks may make claims on the proceeds.
Smiley was president of Arvest Bank of Benton County until resigning March 13.
First Western claims Arvest knew about the pledge of stock collateral, and produced a pair of control agreements appearing to be signed by Arvest bank officials.
Smiley and his wife, Cynthia, also responded to a suit by First State Bank with a circuit court filing Friday. The bank claims the Smileys and her company, Design for the Home, owe $160,000 in delinquent loans.
First State Bank claims the Smileys misrepresented personal financial statements to secure the loans, and used the Arvest stock as collateral.
The Smileys dispute the claims of fraud, and the filing states Smiley alone prepared, executed and delivered the personal financial statements to the bank, that his wife had no knowledge of the stock pledge.
Smiley's father is Henry Dennis Smiley Sr., chairman of First State Bank of De Queen.
Other banks that have claimed Smiley owes money include:
• Delta Trust & Bank claimed Smiley, his father and HDS Holdings missed the initial payment on a $245,126 loan taken out Feb. 20.
The elder Smiley responded to this suit with a filing stating he didn't sign for loans taken in the name of HDS Holdings. In his own response, his son stated "the purported signature of Smiley Sr. that appears on the promissory note may not be the actual signatures of Smiley Sr."
• First Federal claims HDS Holdings, Smiley Jr. and the elder Smiley borrowed $75,000 last year.
• Bank of Fayetteville claims Smiley Jr. owes $479,177, and an additional $215,012 loaned to HDS Holdings. The bank also claims Smiley Sr. owes $42,006.
• Simmons First National Bank claims Smiley Jr. and Design for the Home owe $69,011 on three loans worth $146,282. Simmons states in its filing the Smileys used their house as collateral.
• Simmons also sued Smiley's father and HDS Holdings for $88,716.
NW News on 05/10/2014