El Dorado man pleads guilty to bank fraud

An El Dorado man has pleaded guilty to two counts of bank fraud in the U.S. District Court.

According to a news release from Kenneth Elser, U.S. attorney for the Western District of Arkansas, Robert Graig “Bob” Smith, 55, of El Dorado, guilty plea was accepted by Judge Susan O. Hickey on Thursday.

The relase cites court records identifying Smith as the owner and operator of Working Chemical Solutions, Inc (WCS), a Delaware corporation located in El Dorado, which manufactured chemical products used in three areas of market concentration: consumer packaged specialty products, industrial specialty products and scientific specialty products.

One of its products was known as “C’mere Deer,” also known as “Wild Game Attractant.” Smith obtained two loans and extensions to those loans for his company, WCS, through Timberland Bank in El Dorado. The bank had secured the loans with a security interest in all stock and other instruments, general intangibles and contract rights, including “C’mere Deer.”

Smith subsequently sold the “C’mere Deer” formula, confidential information and trademarks to Environmental Science Technologies, LLC for $500,000 in December 2006. Smith paid Timberland Bank $149,035.21 out of the $500,000 and kept $350,964,79 for the use of WCS or himself.

Smith then opened business checking accounts in the names of ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC at First Guaranty Bank in Dubach, Louisiana. He also opened business checking accounts in the names of Gilbo, LLC and RCS Investment Trust at First Financial Bank in El Dorado.

In March 2016, during an audit by First Financial Bank’s Internal Audit

Department, it appeared that Smith was kiting checks between his Gilbo, LLC and RCS Investment Trust accounts at First Financial Bank and

checks drawn on the ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC accounts at First Guaranty Bank.

On March 7, 2016, First Financial Bank placed holds on all unverified deposits.

As a result of the

holds, the checks presented for payment from First Guaranty Bank to First Financial Bank were returned and the checks deposited to First Financial Bank were returned from First Guaranty Bank. Between March 9 and March 10, 2016, checks totaling $499,435 were charged back to ATS Scientific Group of Louisiana, LLC and Wells Safety and Technical Products of Louisiana, LLC accounts at First Guaranty Bank.

Smith has yet to be sentenced and faces a maximum penalty of 30 years in prison and possible fine of up to $1 million.