A hearing on the Department's Motion for Contempt was held on October 29, 2008. In the hearing, Mr. Smiley admitted that he has not obeyed the judge's order to turn over the Dinars.
The judge found that this refusal constituted contempt. The judge ordered that Mr. Smiley be returned to custody until such time as he decides to produce the Dinars.
Mr. Smiley currently remains in custody in the Kootenai County jail, where he has been continuously since his arrest on October 24, 2008.
Thursday, November 6, 2008
Monday, October 27, 2008
Smiley Arrested
Jack Smiley was arrested on a criminal contempt of court charge on Friday, October 24, 2008. (See arrest record below. Click to enlarge.) The criminal contempt arises out of his refusal to produce the Dinars as ordered by the court. You can view the "in custody list" on-line here. Click on the Daily Inmate List link.
A hearing on contempt is set for Wednesday, October 29, 2008. At the hearing, Mr. Smiley will answer to the charge of contempt of court. He will either admit it, or deny it. If he denies, the charge will be set for trial. If contempt is proven, the judge can levy various fines and penalties, including additional jail time.
The hearing on Wednesday, October 29 may result in Mr. Smiley being released, or he could continue to be incarcerated. If Mr. Smiley appears and tells the court where he has placed the Dinars, and if he denies the contempt, Mr. Smiley could be released. Various different scenarios can play out, depending on what Mr. Smiley does and how the judge rules on several interim steps.
The Department is seeking to cause Mr. Smiley to produce the Dinars, and as soon as he does so he can be released from jail. As we say in legal circles, "the keys to the jailhouse are in his pocket." The Department is not seeking jail as a punishment for refusal, and is not likely to ask for a penalty of additional jail time.
A hearing on contempt is set for Wednesday, October 29, 2008. At the hearing, Mr. Smiley will answer to the charge of contempt of court. He will either admit it, or deny it. If he denies, the charge will be set for trial. If contempt is proven, the judge can levy various fines and penalties, including additional jail time.
The hearing on Wednesday, October 29 may result in Mr. Smiley being released, or he could continue to be incarcerated. If Mr. Smiley appears and tells the court where he has placed the Dinars, and if he denies the contempt, Mr. Smiley could be released. Various different scenarios can play out, depending on what Mr. Smiley does and how the judge rules on several interim steps.
The Department is seeking to cause Mr. Smiley to produce the Dinars, and as soon as he does so he can be released from jail. As we say in legal circles, "the keys to the jailhouse are in his pocket." The Department is not seeking jail as a punishment for refusal, and is not likely to ask for a penalty of additional jail time.
Tuesday, October 7, 2008
Dinar location
On Monday, 6 October, 2008, the Kootenai County Sheriff, accompanied by Idaho Department of Finance Investigators, served a Writ of Attachment on Mr. Smiley. The Deputies searched Mr. Smiley's residence and his automobile, but did not find any Dinars. They questioned Mr. Smiley, but he refused to turn over the Dinars and refused to say where they are stored. The State is continuing its efforts to locate the Dinars.
The Order issued by Judge Mitchell appointed the Department as receiver, and orders that any person holding the Dinars turn them over to the Department. Any person who holds the Dinars and assists Mr.Smiley in preventing the Department from taking possession is in violation of the Order. The Department intends to seek an Order of Contempt against any such persons, and will ask for monetary penalties, and may also ask that the person be incarcerated as an additional penalty.
If you have possession or control of any of the Dinars, or have any information as to their whereabouts, contact the Department immediately.
NOTE: The judgment provides that any investor choosing to take possesion of his or her share of the Dinars will be allowed to do so. An investor may choose to receive Dinars instead of participating in restitution.
The Order issued by Judge Mitchell appointed the Department as receiver, and orders that any person holding the Dinars turn them over to the Department. Any person who holds the Dinars and assists Mr.Smiley in preventing the Department from taking possession is in violation of the Order. The Department intends to seek an Order of Contempt against any such persons, and will ask for monetary penalties, and may also ask that the person be incarcerated as an additional penalty.
If you have possession or control of any of the Dinars, or have any information as to their whereabouts, contact the Department immediately.
NOTE: The judgment provides that any investor choosing to take possesion of his or her share of the Dinars will be allowed to do so. An investor may choose to receive Dinars instead of participating in restitution.
Friday, October 3, 2008
Post-judgment
Judgment was entered against Jack Smiley on September 23, 2008. The judgment ordered that Smiley make restitution in the amount of $1,195,009, it imposed penalties in the amount of $140,000, and it appointed the Idaho Department of Finance as receiver. You can read the judgment here.
As of this post, Mr. Smiley has not surrendered the Dinars as he was ordered to by the Court, but the Department will continue to try to recover the Dinars.
Having obtained judgment through a motion for summary judgment, the case is no longer set for trial. The summary judgment took the place of the trial. The judge ruled, in essence, that Defendant Smiley could produce no facts that would indicate he could win at trial. The judge looked at the facts produced by the Department and decided that the Department had proved its case, and entered judgment accordingly.
The Department will now shift its focus to collecting restitution.
As of this post, Mr. Smiley has not surrendered the Dinars as he was ordered to by the Court, but the Department will continue to try to recover the Dinars.
Having obtained judgment through a motion for summary judgment, the case is no longer set for trial. The summary judgment took the place of the trial. The judge ruled, in essence, that Defendant Smiley could produce no facts that would indicate he could win at trial. The judge looked at the facts produced by the Department and decided that the Department had proved its case, and entered judgment accordingly.
The Department will now shift its focus to collecting restitution.
Monday, September 8, 2008
Temporary restraining order
The judge issued a temporary restraining order on August 22, 2008, that ordered Jack Smiley to turn over possession of the Dinars to either his lawyer or to the court. That TRO was continued in the judge's order grating the State's motion for summary judgement. The TRO also restrains Smiley from taking any action to cash in or sell the Dinars.
To date, Smiley has not turned over possession of the Dinars. The State has filed a motion to hold Smiley in contempt of court, and will seek sanctions designed to cause him to surrender the Dinars. The motion is set for hearing on September 23, 2008.
To date, Smiley has not turned over possession of the Dinars. The State has filed a motion to hold Smiley in contempt of court, and will seek sanctions designed to cause him to surrender the Dinars. The motion is set for hearing on September 23, 2008.
Sunday, September 7, 2008
Summary Judgment granted
On August 28, 2008, the judge granted the State's motion for summary judgment "in all aspects."
The State seeks various forms of relief, including appointment of a receiver, restitution to investors, and others. The judge also ordered "that for plaintiff to obtain a judgment, the State must notice a hearing on remedies/damages within the next sixty (60) days. In the interim, the Amended Temporary Restraining Order will remain in effect."
The Amended TRO orders Defendant Jack Smiley not to sell, transfer or dispose of the Dinars at issue.
A copy of the Order Granting Summary Judgment can be seen here.
The State seeks various forms of relief, including appointment of a receiver, restitution to investors, and others. The judge also ordered "that for plaintiff to obtain a judgment, the State must notice a hearing on remedies/damages within the next sixty (60) days. In the interim, the Amended Temporary Restraining Order will remain in effect."
The Amended TRO orders Defendant Jack Smiley not to sell, transfer or dispose of the Dinars at issue.
A copy of the Order Granting Summary Judgment can be seen here.
Thursday, July 31, 2008
Status 31 July 2008
Judge Mitchell heard argument on two motions to strike affidavit testimony, and on the summary judgment motion filed by the State.
Judge Mitchell refused to strike the Affidavit of Jack Smiley. He also refused to strike the Affidavit of Timothy Martin, though he did limit use of a few of the sentences in it. He allowed in all exhibits attached to the Martin Affidavit.
Judge Mitchell listened to the summary judgment arguments and took the case under advisement. Rulings on such motions, particularly complex ones such as this, do not come swiftly. A ruling could well take 30 days or more.
You can read the State's summary judgment memorandum here.
Judge Mitchell refused to strike the Affidavit of Jack Smiley. He also refused to strike the Affidavit of Timothy Martin, though he did limit use of a few of the sentences in it. He allowed in all exhibits attached to the Martin Affidavit.
Judge Mitchell listened to the summary judgment arguments and took the case under advisement. Rulings on such motions, particularly complex ones such as this, do not come swiftly. A ruling could well take 30 days or more.
You can read the State's summary judgment memorandum here.
Friday, May 30, 2008
Summary Judgement
The State filed for Summary Judgment on May 22, 2008. The hearing on the motion for summary judgment is set for July 28, 2008. The brief in support of the motion will be posted on this site once a conformed copy is received back from the court.
Monday, April 21, 2008
Cease and Desist Order
The Idaho Department of Finance issued a Summary Cease and Desist Order to Jack Smiley on June 2, 2005, relating to many of the same transactions alleged in the Department's complaint. Click the link on the right to view the Order.
Wednesday, March 26, 2008
Dinar count
On November 19th, 2007, I and a Department investigator traveled to Coeur d'Alene, Idaho and counted Iraqi Dinars (IQD) in the possession of Mr. Smiley. The notes are primarily in 25,000 Dinar denominations. We counted 1,264,420,000 IQD. Pictured below is about half of the notes.
Tuesday, March 25, 2008
First post
This blog will be updated periodically to keep persons interested in the civil lawsuit against Jack Lee Smiley informed. Upcoming significant events will be posted under the Events sidebar to the right.
The case is currently in the discovery phase. Mr. Smiley's deposition has been taken. The State is gathering documents in an effort to prove the case.
There will not be a significant occurance for several months, until the discovery phase is complete.
The case is currently in the discovery phase. Mr. Smiley's deposition has been taken. The State is gathering documents in an effort to prove the case.
There will not be a significant occurance for several months, until the discovery phase is complete.
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