John L. Smith now accused of defrauding creditors
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.