Files, wife face foreclosure suit
FORT SMITH — A Booneville bank has filed a foreclosure complaint against state Sen. Jake Files and his wife that claims they defaulted on multiple mortgages totaling more than $2 million, for which they pledged their home and Files’ business as security.
An attorney for First Western Bank filed the lawsuit June 2 in Sebastian County Circuit Court naming as defendants Files, his wife, Michaela, and other entities Files owes money to and that might have an interest in the properties pledged in the mortgages: First National Bank of Fort Smith, Arvest Bank, Ed and Stacy Ralston, the Internal Revenue Service, and American Builders and Contractors Supply Co. Inc.
According to the complaint, Jake and Michaela Files took out two loans, one for $865,000 on Aug. 22, 2013, and another for $885,000 on Oct. 23, 2014. To secure both loans, the Fileses pledged their home at 300 Free Ferry Landing in Fort Smith.
On Oct. 24, 2014, the Fileses pledged their FFH Construction LLC property at 3203 Waco St. as additional security for the $885,000 loan, the suit said.
Days after the Fileses took out the first mortgage, on Aug. 27, 2013, they took out another loan for $350,000 and secured it with a mortgage on property at 4105 Free Ferry Landing.
Another mortgage was taken out July 29, 2014, pledging the 4105 Free Ferry Landing property against a $30,125 loan from First Western Bank, according to the lawsuit.
“We are working with the bank on restructuring some of our debt, and this is simply a step in the process,” Files said Thursday in response to a request for comment.
A debt collection company, TBF Financial LLC, filed a complaint Monday in Sebastian County Circuit Court seeking payment of a $15,848 debt by Files and FFH Construction LLC.
The two lawsuits filed in the past week make six that have been filed this year against Files, R-Fort Smith, or his company.
Files, chairman of the Senate Committee on Revenue and Taxation, has represented Fort Smith in the Senate since 2011. He announced last month he would not seek re-election.
The Federal National Mortgage Association, also known as Fannie Mae, filed suit in March against FFH of Fort Smith LP, of which Files is a partner, seeking payment of more than $1.87 million on a loan it took out July 15, 2009.
Fannie Mae sent a notice of default to FFH of Fort Smith, giving the company 30 days to correct the default. It didn’t, and Fannie Mae notified the company Jan. 31 that it would foreclose on the loan, according to the suit.
The mortgage pledged collateral as Lot 1 of the Rock Creek Addition in Fort Smith. It was identified as Rock Creek Apartments at 3020 North 50th St.
In another lawsuit against Files this year, the Richard B. Griffin Family Trust Dated Aug. 30, 1991, took Files, his wife and the company of Jonathan Foster, Files and Jett Harris LLC to court and won a foreclosure judgment last month of more than $467,000 on two loans the trust made to the company. Jake and Michaela Files were guarantors of a development agreement, according to the suit.
Two parcels of land at the Borough of Middleton in Fort Smith were sold in a commissioner’s sale May 19.
On Jan. 23, American Builders and Contractors Supply Co. of Fort Smith won a $69,903 judgment against Files and FFH Construction for failure to pay for construction materials.