Creditor Alleges John L. Smith Tried to Conceal Assets in Bankruptcy
A creditor of the former Arkansas Razorbacks football Coach John L. Smith alleged in a lawsuit Monday that Smith attempted to “hinder, delay or defraud his creditors” in his $40.7 million bankruptcy case.
The creditor, RLBB Acquisition LLC of Louisville, Ky., is an unsecured creditor in the Chapter 7 bankruptcy Smith filed in September. Smith, who listed $1.3 million in assets, has blamed bad real estate investments in Kentucky for his financial woes.
Smith was a member in RLBB and personally guaranteed loans for real estate investments. RLBB filed the lawsuit in Smith’s bankruptcy case to prevent its debt of $4.5 million from being discharged.
In December, RLBB’s representatives rummaged through 6,000 documents from Smith and found “no documentation for substantial periods of time and no explanation to date on where such documentation may be,” the lawsuit said.
But RLBB did find evidence of several real estate transfers that happened since 2008 involving properties in several states, including Idaho, Kentucky, Michigan and Utah. The lawsuit says Smith transferred some of the properties to a trust established in the name of his wife, Diana Smith, while others went to his adult children. Click here to read the full story from our partners at ArkansasBusiness.com.