Updating a blog post from last fall, former Arkansas Razorbacks football coach John L. Smith has reached a settlement with his bankruptcy trustee to return money he allegedly gave away or transferred before he filed for Chapter 7 bankruptcy last year.
According to Arkansas Business, Smith, his wife and children will return $165,000 in cash and $600,000 in property to settle the “fraudulent transfer” claims. John Lee, Smith’s trustee, said that between 2008 and 2012, Smith and his wife transferred $525,000 to his wife’s revocable trust. Also during that period, Smith and his wife gave their children $120,000.
Arkansas Business also reports that in addition to the money, the settlement will include 44 acres of undeveloped land in Jefferson County, Kentucky, valued at about $600,000. In February, creditors sued Smith to prevent him from discharging nearly $18 million in debt. Smith’s debt was reportedly at $40 million at the time of his bankruptcy filing. USA Today reported last fall that Smith arranged to have $600,000 of his $850,000 in pay deferred until after the end of the 2012-13 college football season, raising concerns about the validity of his case.
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