$300,000 judgment in case OK’d

A Fordyce businessman fined more than $1.3 million in 2006 for operating a chain of illegal payday lending operations has agreed to a $300,000 judgment — with $50,000 payable now — for another kind of money-lending scheme.

This time, Dennis Bailey “abused the criminal court system to take advantage of vulnerable Arkansans who needed money to pay their bills or for emergencies,” Attorney General Leslie Rutledge said Monday in a news release. One case, Rutledge said, involved a mother needing money to pay for a son’s funeral.

Bailey ran the scheme through his Fordyce businesses, including Bailey’s Superstore, Bailey’s Bottleshoppe, Brooks Bailey Enterprises, Inc., Bailey’s On Main, Bailey’s Pawn and Gun, and Newsmart Liquor, Rutledge said.

The consent judgment, agreed to by both sides on July 8 before Pulaski County Circuit Judge Mary S. McGowan, required Bailey pay $50,000 in restitution within 30 days. Another $250,000 in civil penalties was suspended, for as long as Bailey abides by the judgment.

Bailey and his enterprises also are required to withdraw some $125,000 in outstanding affidavits Bailey has submitted to hot-check coordinators in the 13th Judicial District.

Bailey signed the consent judgment without admitting guilt, the judgment noted.

The state Board of Collection Agencies in 2006 fined Bailey $1.3 million for running 14 payday lending offices without a license.

The Arkansas Supreme Court upheld $1.4 million in fines, interest and fees in April 2008.