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Fort Smith Man Convicted Of Bankruptcy Fraud, Gun Charge

FORT SMITH (KFSM) – A Fort Smith man was convicted of bankruptcy fraud and a gun charge on Nov. 20, according to a news release from U.S. Attorney for the...
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FORT SMITH (KFSM) – A Fort Smith man was convicted of bankruptcy fraud and a gun charge on Nov. 20, according to a news release from U.S. Attorney for the Western District of Arkansas Conner Eldridge.

Randall B. Blythe, 58, was found guilty of three counts of bankruptcy fraud and one count of being a felon in possession of a firearm after a trial that spanned four days in Fort Smith, the release states.

Judge P.K. Holmes, III presided over the trial in U.S. District Court, according to the release.

U. S. Attorney Eldridge stated, “Fraud, to include federal bankruptcy fraud, is shameful, and will not be tolerated in the Western District of Arkansas. We remain committed to investigating and prosecuting those who perpetuate fraud, swindle others out of money, and engage in financial crimes.  People who use the bankruptcy system to swindle and steal from others tarnish the system and do a disservice to the honest petitioners seeking a second chance.”

Court documents state in September of 2008 until July of 2009, Blythe, in contemplation of a bankruptcy case, knowingly and fraudulently transferred property belonging to himself, including six collector automobiles and over $150,000 in checks, to his mother’s company, Classic Cars of Northwest Arkansas. This concealed the property and money from his creditors and the Bankruptcy Court, court documents state.

Blythe also fraudulently submitted a Statement of Financial Affairs, in which, he omitted those transfers and income, according to court documents.

In 2011, Blythe was convicted of 21 counts of bank fraud, and he was also convicted of being a felon in possession of 11 collectible firearms, court documents state.

He was indicted by a federal grand jury on March 19, 2014, according to court documents.

His sentence will be determined at a later date. Blythe faces a sentence of not more than 10 years in prison and a $250,000 fine, the release states.

The case was investigated by the FBI, according to the release.