Smiley: Deposit Stock Funds in Court Account

Dennis Smiley Jr., former president and CEO of Arvest-Benton County, responded Friday to the interpleader suit filed against him by his former employer.

Smiley is asking the Benton County Circuit Court to allow Arvest Bank to deposit $551,754 — the total value of his Arvest stock and stock options — into a registry to be divvied up by the 19 banks that claim Smiley pledged the stock as collateral on loans.

In a separate filing filed Friday, Smiley has also asked the court to dismiss a claim by the Bank of Fayetteville, which, among other things, is seeking a judgment of $479,177 against Smiley in relation to a defaulted loan.

A half dozen banks have already lined up to try and claim what they say Smiley owes them. The banks are asking that they be given a priority lien on the collateral. The first to file was the Bank of Fayetteville and the latest was Centennial Bank of Conway.

Arvest filed the interpleader on April 2, hoping to clear itself of any financial liabilities tied to the alleged multi-million dollar loan scam perpetuated by Smiley.

An interpleader action allows the stakeholder, in this case Arvest, to turn a dispute over to a court and to be dismissed from any legal action. It is designed to eliminate multiple lawsuits over the same stake and to protect the stakeholder from actual or potential multiple liability.

Smiley, a 25-year veteran of Arvest, abruptly resigned March 13. He is represented by the Ball and Mourton firm of Fayetteville.