Former Arkansas and Michigan State 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 bankruptcy court, the Detroit Free Press reported yesterday. 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 U.S. Trustee's office is also investigating Smith for potential fraud and abuse of the bankruptcy system but has not filed a complaint, according to court filings. The creditors cite his unusual contract with the Razorbacks last year, in which 71 percent of his $850,000 salary was deferred until right after the 2012 season.
