Wednesday, February 13, 2013

Former Hog coach John Smith under scrutiny for contract in bankruptcy court

Posted By on Wed, Feb 13, 2013 at 10:19 AM

WHO ME? John L. Smith accused of finagling his Hog contract for bankruptcy purposes.
  • WHO ME? John L. Smith accused of finagling his Hog contract for bankruptcy purposes.
USA Today reports:

Former Arkansas football coach John L. Smith has been accused of using his employment contracts with the Razorbacks to defraud several of his creditors, according to two complaints filed this week in U.S. Bankruptcy Court.

Smith filed for Chapter 7 bankruptcy last year, claiming more than $40 million in liabilities stemming from failed real estate deals around Louisville. By doing so, Smith hoped to have those debts discharged so he can move on with his life. But the creditors are trying to prevent that by filing complaints that are tantamount to civil lawsuits.

The bankruptcy arm of the U.S. Department of Justice also has investigated Smith for potential fraud and abuse of the bankruptcy system but has not filed a complaint, according to court filings.

Smith made a series of transactions "with the intent to hinder, delay, or defraud creditors," said one of the complaints filed Monday.

There have been many past reports about how Smith's one-year football coaching contract was structured to backload payments, thereby reducing his reported income during his bankruptcy proceeding. It was a break from tradition and, in this, the UA has some spiritual culpability, if not legal.

Arkansas Athletic Director Jeff Long told reporters last year the deferral was made for Smith's retirement. However, Smith, 64, did not retire. He recently was hired to coach at Fort Lewis College in Colorado after not being retained by Arkansas.

"The debtor was aware he was planning to file a petition for relief under Chapter 7, and his effort to renegotiate the terms of his original compensation package was intended to place such funds beyond the reach of the creditors," one of the complaints states.

The same complaint also says Smith transferred several valuable assets in recent years to his daughter and a trust in his wife's name. By doing so, the creditors allege he was concealing money owed them.

SPEAKING OF HOG FOOTBALL: Report from KNWA on the arrest of senior defensive end Austin Flynn for DWI. Local newspaper article says he's the ninth Razorback football player arrested since last March.

Tags: , , , ,

Favorite

Speaking of...

Comments (4)

Showing 1-4 of 4

Add a comment

 
Subscribe to this thread:
Showing 1-4 of 4

Add a comment

More by Max Brantley

Readers also liked…

  • Foster family disputes key statements from Justin Harris

    Craig and Cheryl Hart were the foster parents of the two sisters who were adopted by Rep. Justin Harris and his wife Marsha and later "rehomed." The Harts say that the adoption was allowed to proceed over the objections of the foster parents and local DHS staff due to pressure exerted by Cecile Blucker, head of the Division of Children and Family Services, on behalf of Justin Harris.
    • Mar 7, 2015
  • Eureka Springs City Council passes civil rights ordinance, sets stage for potential lawsuit

    The Eureka Springs City Council last night suspended the rules and hurriedly passed a civil rights ordinance that extends anti-discrimination protection to gay people in employment, housing and public accommodations. It sets up a potential legal challenge if the legislature completes passage of a law aimed at preserving legal discrimination against gay people.
    • Feb 10, 2015
  • The shame of Robert E. Lee/MLK Day in Arkansas

    This morning, I was a student ambassador for Philander Smith College and the Social Justice Institute at a House Committee that discussed Rep. Nate Bell’s proposal to divide a Robert E. Lee and Martin Luther King, Jr. holiday.
    • Feb 11, 2015

Most Shared

Most Viewed

Most Recent Comments

Blogroll

 

© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation