FAYETTEVILLE — H. Dennis Smiley Jr., the banker who pleaded guilty to a federal bank fraud charge, was sentenced Thursday to eight years and one month in prison and ordered to pay $4.9 million in restitution.
Smiley was the president of Arvest Bank Benton County. He admitted to federal investigators he had been living well beyond his means for at least the past decade, leading him to borrow more than $4 million from 20 banks.
The investigation by the Federal Bureau of Investigation showed Smiley pledged proceeds from his Arvest stock worth less than $500,000 to secure the loans.
Smiley pleaded guilty to one count of bank fraud in August in federal court.
Bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million.
Federal court documents show Smiley also admitted he forged his father’s signature on loan documents, had subordinates and other Arvest executives sign documents falsely showing the stock collateral was unencumbered and used false financial statements to secure loans.
Smiley started his Arvest career in 1989 as a commercial loan officer at McIlroy Bank in Fayetteville. He served as president of Arvest Bank of Springdale from 2001 until April 2012 when he was named to the top Benton County post.