H. Dennis Smiley Jr., former head of Arvest Bank of Benton County, pleaded guilty to one count of bank fraud Tuesday in federal court. Sentencing will be at a later date.
Smiley resigned from Arvest March 13, 2014 and several banks filed lawsuits claiming he defaulted on loans.
The federal investigation began after allegations Smiley pledged proceeds from his Arvest stock, worth about $550,000, as collateral for several loans worth more than $4 million. Arvest filed a filed a lawsuit listing 21 banks that could make claims to the stock proceeds and settled with all but two banks.
U.S. District Judge P.K. Holmes III heard the case at the Western District's federal courthouse in Fayetteville.
The Federal Bureau of Investigation investigated the case and acting United States Attorney Kenneth Elser served as prosecutor.