Despite mounting evidence surrounding the business dealings of State Sen. Jake Files, the state head of the Republican Party said there is no intention at this time to ask for Files’ registration.
In response to an email asking about File’s status, state republican chairperson Doyle Webb released he following statement on Monday:
“Sen. Files is like any other citizen in the United States. He is presumed innocent until proven guilty. At this time no charges have been filed against him although there is a reported ongoing investigation by the FBI, which has declined comment. If Sen. Jake Files is charged and found guilty of a crime he should be punished in the manner authorized by law.”
Files has already announced that we won’t be seeking re-election in 2018.
Mat Pitsch, who has served in the Arkansas House of Representatives since 2015 has announced he will be seeking the Republican nomination to the State Senate seat being vacated by Files.
Webb’s statement comes on the heels of numerous calls by various members of the legislature for Files to resign in the wake of mounting concerns over several business deals, including one that has prompted an FBI investigation for money laundering and wire fraud.
Files 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.
Over $1.2 million in city funds had been turned over to Files and Webb before the city “stalled” the project last year.
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.
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.”
A cursory check of information on current court proceedings involving files and his parent company reveals a number of ongoing and active cases. Files faces a number of 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.
The current current lawsuit by First Western Bank names Jake Files as a defendant with his company, FFH Construction and seeks $1.2 million compensation in default for land purchases. Arvest Bank. Centennial Bank, First National Bank, the Internal Revenue Service and other have claims pending, but the IRS, however, has relented to First Western Bank’s claim of superiority over FFH Construction assets.
In the matter being investigated by the FBI, it is alleged that Files misappropriated almost $26,000 in general improvement funds through a non-profit entity that was overseeing the construction of a failed sports complex for the city of Fort Smith on Chaffee Crossing land.
Accordibg to a spokesman with the Contractors License Board, Files and Webb have operated as general contractors for the River Valley Sports Complex without having a license on the project during the initial construction phases. State law requires a license on any projects estimated at $50,000 or more for labor and materials.
According to Files, his interview with officials about the GIF monies is part of a larger picture involving a number of elected officials and funds for various projects.
