Republican state senator Jake Files, who is currently facing five lawsuits in the 12th District court of Sebastian County, is now the subject in an investigation of the misappropriation of funds in connection with the “stalled” River Valley Sports Complex project for the city of Fort Smith.
Files, who is being investigated for money laundering and wire fraud, is alleged to have misappropriated more that $25,000 in federal grant money in connection with the proposed sports complex on Chaffee Crossing. Files and Sebastian County election commission member member Lee Webb submitted plans for the complex back in 2014 and the city of Fort Smith pulled the plug on the project in 2016.
The FBI served a search warrant August 10 at the office of Files and his parent company FFH Construction in the investigation seizing hard drives, cell phones and financial records among other evidence.
The proposed $4.8 million complex, which drew $1.6 million of its funds from the city, was supposed to be completed in 2015, though the project was “stalled” in 2016. According to FBI documents, the agency was acting on probable cause that Files submitted “three materially false and fraudulent bids” from the state’s General Improvement Funds.
Files released the following statement in his defense:
“I was recently contacted by law enforcement officials who are investigating allegations of misuse of funds from a GIF grant. I was fully cooperative, and I will continue to be. But I want to make it clear that I have not been charged with any crime and continue to deny the claims that have been alleged. I am confident that when all the facts are brought to light I will be cleared of any appearance of wrongdoing.”
Files faces five active and open lawsuits in Sebastian County, according to Court Connect filed by First Western Bank, TBF Financial, United Rentals, Federal National Mortgage and Richard B. Griffin.
