Jack Smiley has been arrested and is currently in the Kootenai County Jail with a $100,000 bond. He has been charged with Grand Theft, General Fraud, Commodity Fraud, and 2 counts of Forgery.
These criminal charges have been brought by the Kootenai County prosecutor.
Thursday, September 10, 2009
Tuesday, September 8, 2009
Distribution Order
Judge Mitchell has approved distribution of the Dinars, and has ordered the Receiver to distribute Dinars to all investors. The Department of Finance will not be converting the Dinars to dollars and sending out US Currency. All investors will receive Dinars.
The Receiver was able to sell some of Smiley's property, and has a small cash balance on hand. This will be used to pay for shipping. If there is any money left over once all costs have been paid, Judge Mitchell has ordered the receiver to pay this out to investors at the same ratio as the Dinar distribution. Thus, it is possible that investors may receive a small check at a later date. Keep your addresses current with the Department until the entire process is complete.
The Receiver is beginning to distribute the Dinars. Given that well over a hundred separate shipments must be made, probably close to two hundred, and the associated count and arrangements for tracking the shipments, it will take the Receiver at least a few days, and probably more, to complete all shipments.
For those investors who choose to do so, you may call the Receiver and make arrangements to travel to Boise to pick up your Dinars. Do not just show up here and ask for Dinars, call in advance and make an appointment. The Dinars are stored in a bank vault and must be retrieved and counted before they can be handed over.
The Receiver is Tim Martin, at (208) 332-8079.
The Receiver was able to sell some of Smiley's property, and has a small cash balance on hand. This will be used to pay for shipping. If there is any money left over once all costs have been paid, Judge Mitchell has ordered the receiver to pay this out to investors at the same ratio as the Dinar distribution. Thus, it is possible that investors may receive a small check at a later date. Keep your addresses current with the Department until the entire process is complete.
The Receiver is beginning to distribute the Dinars. Given that well over a hundred separate shipments must be made, probably close to two hundred, and the associated count and arrangements for tracking the shipments, it will take the Receiver at least a few days, and probably more, to complete all shipments.
For those investors who choose to do so, you may call the Receiver and make arrangements to travel to Boise to pick up your Dinars. Do not just show up here and ask for Dinars, call in advance and make an appointment. The Dinars are stored in a bank vault and must be retrieved and counted before they can be handed over.
The Receiver is Tim Martin, at (208) 332-8079.
Thursday, September 3, 2009
Receiver Report
We faxed the receiver report to the judge today. Once he signs it, the Department will begin to distribute Dinars.
The Department proposed that investors who wish to pick up their Dinars may make arrangements with the Dept. to travel to Boise to recieve their Dinars. Dinars not picked up will be mailed by registered mail to the investors. These two proposals must first be approved by the Judge before the Dept. can move ahead with this plan.
Due to logistical difficulties, the Dept. will not be converting the Dinars to dollars. The Dept. will deliver Dinars to all investors, and it is up to the individual investor to convert them into dollars.
Mr. Smiley bought his Dinars through the web site Dinartrade.com. The Dept spoke with the owner of Dinartrade.com, and he expressed that he is willing to repurchase the Dinars. This is one option to convert.
The Dept. cannot and does not vouch for Dinartrade.com, and makes no representation about the site's or the owner's reliability or honesty. The Dept. is not recommending that you use Dinartrade.com. On the other hand, the Dept is not recommending that you do not use Dinartrade.com.
Simply put, the Dept knows very little about Dinartrade.com and cannot make any recommendation, one way or the other, about the site or its owner.
The Department proposed that investors who wish to pick up their Dinars may make arrangements with the Dept. to travel to Boise to recieve their Dinars. Dinars not picked up will be mailed by registered mail to the investors. These two proposals must first be approved by the Judge before the Dept. can move ahead with this plan.
Due to logistical difficulties, the Dept. will not be converting the Dinars to dollars. The Dept. will deliver Dinars to all investors, and it is up to the individual investor to convert them into dollars.
Mr. Smiley bought his Dinars through the web site Dinartrade.com. The Dept spoke with the owner of Dinartrade.com, and he expressed that he is willing to repurchase the Dinars. This is one option to convert.
The Dept. cannot and does not vouch for Dinartrade.com, and makes no representation about the site's or the owner's reliability or honesty. The Dept. is not recommending that you use Dinartrade.com. On the other hand, the Dept is not recommending that you do not use Dinartrade.com.
Simply put, the Dept knows very little about Dinartrade.com and cannot make any recommendation, one way or the other, about the site or its owner.
Wednesday, July 29, 2009
Dinar distribution
The Receiver has been contacting investors in order to verify their claims for part of the recovery. He has imposed a deadline for response of August 7, 2009.
Thereafter, he will determine what has been claimed and prepare a Receiver's report for Judge Mitchell. We will also provide a proposed order for the judge, approving the plan for distribution. After the judge signs the order, or a revised order is he desires changes, the Receiver can begin distribution of the Dinars.
The Receiver is also exploring the feasibility of converting the Dinars back to dollars, and distributing dollars to investors who choose that option. A consideration for the Receiver is that dumping many Dinars into the market all at once may depress the price and lower their value. Whether this will occur has not yet been determined. However, if this is a risk, the Receiver may have to control the release rate in order not to artificially lower the value of the Dinars.
Thereafter, he will determine what has been claimed and prepare a Receiver's report for Judge Mitchell. We will also provide a proposed order for the judge, approving the plan for distribution. After the judge signs the order, or a revised order is he desires changes, the Receiver can begin distribution of the Dinars.
The Receiver is also exploring the feasibility of converting the Dinars back to dollars, and distributing dollars to investors who choose that option. A consideration for the Receiver is that dumping many Dinars into the market all at once may depress the price and lower their value. Whether this will occur has not yet been determined. However, if this is a risk, the Receiver may have to control the release rate in order not to artificially lower the value of the Dinars.
Wednesday, July 1, 2009
Smiley released
At the hearing regarding Mr. Smiley's continuing incarceration, Judge Mitchell ruled that Mr. Smiley will be released from jail at 10:00 AM on Thursday, 2 July 2009.
Tuesday, June 30, 2009
Status 30 June 2009
All the Dinars were recovered. The Department finished counting the Dinars, and arrived at essentially the same total. The Dinars were examined by the Secret Service again, and, again were confirmed to have all the anti-counterfeiting measures expected in currency.
The Dinars have been packaged, sealed and are stored in a bank vault.
Proof of Claim. The Department is going through the process of confirming how much each investor invested with Jack Smiley. The Department cannot simply accept a person's unsupported claim, and will require some proof or evidence of the amount actually invested.
Send documentation of your investment to the Department. Smiley's record keeping was inaccurate and unclear, and in many cases it is difficult to tell how much the investor actually gave to Smiley. The Joint Venture agreements alone probably cannot support a claim, for various reasons. The best evidence will be cancelled checks, or wire transfer receipts. Bank statements or records that show withdrawals of money in amounts and on dates that coincide with the Joint Venture Agreements are also helpful. Although many investors have already provided this documentation, the verification process make take a few weeks. The Department is preparing to notify investors who need to provide more documentation.
You can fax your material (208) 332-8016.
The process. Once the Department is satisfied that investors have verified their claims, it can determine how the Dinars will be distributed. That is, if 80% of the money was recovered, for example, investors will get 80% of their investment. The Department must provide the Judge with an accounting showing how it plans to distribute the Dinars, and cannot distribute them until the Judge signs off on the plan. The judge will oversee the entire distribution process.
The Department's interest. Some investors appear to believe Smiley's absurd claim that the State will keep some of the Dinars. The Department is not legally entitled to keep any of the money. The Department is entitled to be paid the penalty Smiley was ordered to pay, but the Department is not going to take the penalty from the Dinars unless all investors recover 100% of their investment and some surplus exists. This does not seem likely. Again, remember that the Judge will be overseeing the distribution.
Jack Smiley's status. A telephonic status conference has been set for Tuesday, 30 June 2009 with Judge Mitchell regarding Smiley's ongoing incarceration. Now that the Dinars have been recovered, ongoing incarceration cannot have a coercive effect, and civil contempt is over. It is likely that Smiley will be released from jail very soon.
The Dinars have been packaged, sealed and are stored in a bank vault.
Proof of Claim. The Department is going through the process of confirming how much each investor invested with Jack Smiley. The Department cannot simply accept a person's unsupported claim, and will require some proof or evidence of the amount actually invested.
Send documentation of your investment to the Department. Smiley's record keeping was inaccurate and unclear, and in many cases it is difficult to tell how much the investor actually gave to Smiley. The Joint Venture agreements alone probably cannot support a claim, for various reasons. The best evidence will be cancelled checks, or wire transfer receipts. Bank statements or records that show withdrawals of money in amounts and on dates that coincide with the Joint Venture Agreements are also helpful. Although many investors have already provided this documentation, the verification process make take a few weeks. The Department is preparing to notify investors who need to provide more documentation.
You can fax your material (208) 332-8016.
The process. Once the Department is satisfied that investors have verified their claims, it can determine how the Dinars will be distributed. That is, if 80% of the money was recovered, for example, investors will get 80% of their investment. The Department must provide the Judge with an accounting showing how it plans to distribute the Dinars, and cannot distribute them until the Judge signs off on the plan. The judge will oversee the entire distribution process.
The Department's interest. Some investors appear to believe Smiley's absurd claim that the State will keep some of the Dinars. The Department is not legally entitled to keep any of the money. The Department is entitled to be paid the penalty Smiley was ordered to pay, but the Department is not going to take the penalty from the Dinars unless all investors recover 100% of their investment and some surplus exists. This does not seem likely. Again, remember that the Judge will be overseeing the distribution.
Jack Smiley's status. A telephonic status conference has been set for Tuesday, 30 June 2009 with Judge Mitchell regarding Smiley's ongoing incarceration. Now that the Dinars have been recovered, ongoing incarceration cannot have a coercive effect, and civil contempt is over. It is likely that Smiley will be released from jail very soon.
Sunday, June 21, 2009
Dinars recovered
The Department of Finance has recovered most if not all of the missing Dinars. The Department will count them and do an accounting to determine how many were recovered, and will begin the process of making restitution to investors.
The Department will initially determine the appropriate ratio of distribution. That is, depending on how many Dinars are actually present, a given investor might get 50 cents on the dollar, or 90 cents, or whatever. Once the ratio is determined, investors who choose to receive Dinars will get their Dinars. The remaining Dinars will be converted to cash, if that is possible, and the money will be distributed in the same ratio.
This process will be overseen and approved by Judge Mitchell, and may take some weeks to accomplish.
This blog will be updated as new information is available.
The Department will initially determine the appropriate ratio of distribution. That is, depending on how many Dinars are actually present, a given investor might get 50 cents on the dollar, or 90 cents, or whatever. Once the ratio is determined, investors who choose to receive Dinars will get their Dinars. The remaining Dinars will be converted to cash, if that is possible, and the money will be distributed in the same ratio.
This process will be overseen and approved by Judge Mitchell, and may take some weeks to accomplish.
This blog will be updated as new information is available.
Wednesday, June 17, 2009
Contempt
The hearing on Mr. Smiley's Motion for Relief was held on Monday, June 15, 2009. Mr. Smiley testified briefly, and I cross examined him briefly as well.
After considering the arguments of the parties, and after having dome independent research, Judge Mitchell denied the motion for relief and returned Mr. Smiley to custody for an indefinite period.
Mr. Smiley remains in jail, and will until either he produces the Dinars, or until he convinces the court at a later time that continued incarceration will not have a coercive effect.
After considering the arguments of the parties, and after having dome independent research, Judge Mitchell denied the motion for relief and returned Mr. Smiley to custody for an indefinite period.
Mr. Smiley remains in jail, and will until either he produces the Dinars, or until he convinces the court at a later time that continued incarceration will not have a coercive effect.
Tuesday, June 2, 2009
Motion for relief
Mr. Smiley's lawyer has filed a Motion for Relief. This motion is currently set for hearing at 4:00 PM on Monday June 15, 2009 at the Kootenai County Courthouse, Court Room 8 in front of Judge Mitchell. The Department will appear and resist this motion.
In the motion, Mr. Smiley's lawyer is suggesting that Mr. Smiley will never reveal where he has hidden the Dinars. Therefore, since more jail time will not cause him to reveal the location of the Dinars, he should be let out of jail.
The concept is that jail will coerce Mr. Smiley into producing the Dinars. If the judge decides that Mr. Smiley cannot be coerced by incarceration, continued incarceration then becomes punitive, and at that stage Mr. Smiley is entitled to the various protections provided by the criminal contempt rules.
Incarceration to coerce behavior is civil contempt; incarceration to punish is criminal contempt. Different rules apply to the two types. Civil contempt has fewer protections because the person can get out of jail at will just by obeying the Court's order.
In the motion, Mr. Smiley's lawyer is suggesting that Mr. Smiley will never reveal where he has hidden the Dinars. Therefore, since more jail time will not cause him to reveal the location of the Dinars, he should be let out of jail.
The concept is that jail will coerce Mr. Smiley into producing the Dinars. If the judge decides that Mr. Smiley cannot be coerced by incarceration, continued incarceration then becomes punitive, and at that stage Mr. Smiley is entitled to the various protections provided by the criminal contempt rules.
Incarceration to coerce behavior is civil contempt; incarceration to punish is criminal contempt. Different rules apply to the two types. Civil contempt has fewer protections because the person can get out of jail at will just by obeying the Court's order.
Monday, April 13, 2009
April 13, 2009
There has been little change. Mr. Smiley still refuses to obey the judge's order, and is still in the Kootenai County Jail.
Friday, February 20, 2009
Update 2 Feb 09
Jack Smiley remains in the Kootenai County jail, where he has been since October, 2008. He continues refuse to surrender the Dinars.
The Department has contacted 182 storage facilities in North Idaho and Northeast Washington to inquire whether they are storing anything for Mr. Smiley. No storage facility, other than one were aware of and have searched, had any record relating to Mr. Smiley.
The Department continues its efforts to locate the Dinars.
The Department has contacted 182 storage facilities in North Idaho and Northeast Washington to inquire whether they are storing anything for Mr. Smiley. No storage facility, other than one were aware of and have searched, had any record relating to Mr. Smiley.
The Department continues its efforts to locate the Dinars.
Thursday, November 6, 2008
Contempt
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.
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.
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.
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