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John L. Smith now accused of defrauding creditors

John L Smith AP

In addition to a one-and-done season as Arkansas’ head coach and the death of his brother, Bart, John L. Smith’s financial troubles have equated to one unimaginably tough year. Unfortunately for Smith, now coaching at Fort Lewis College in the D-II ranks, he’s not in the clear yet when it comes to his money problems.

The USA Today reports that several creditors have issued complaints that Smith used his 10-month employment contract with UA for fraud. Additionally, the report states that the bankruptcy arm of the U.S. Department of Justice has investigated Smith for possible fraud, but has not yet filed a complaint.

Specifically, creditors are interested in Smith’s $850,000 contract with UA, 71 percent of which he agreed to receive after the season. One payment of $300,000 was made to Smith and December, and he is set to receive another $300k later this month. That agreement was reportedly made a week before he filed for Chapter 7 bankruptcy in September and goes against what how the university paid former coach, Bobby Petrino.

The USA Today reported later that month that Smith had just hundreds of dollars on hand to his name after expenses. That would make sense if he deferred payment of just over $600,000.

“[Smith] “has unjustifiably concealed, destroyed, mutilated, falsified, and/or failed to keep or preserve recorded information, including books, documents, records and papers from which the debtor’s financial conditions or business transactions might be ascertained,” the complaint sates.

Smith claimed more than $40 million in liabilities stemming from failed real estate investments.

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5 Responses to “John L. Smith now accused of defrauding creditors”
  1. irishdodger says: Feb 12, 2013 8:41 PM

    Poor Johnelle. I’d pay money to listen to him debate Les Miles.

  2. Deb says: Feb 12, 2013 9:50 PM

    After what that team has been through, I certainly hope Bret Bielema is a good guy who pays his bills and sleeps with his own wife.

  3. geraldthecat says: Feb 13, 2013 12:04 AM

    Thief.

  4. fnc111 says: Feb 13, 2013 3:30 AM

    What an idiot to blow all that money. MSU gave him a huge contract. Why are some of these types of people so clueless? Maybe they are just greedy.

  5. mydixienormus says: Feb 13, 2013 9:54 AM

    Smile!

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