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Family members of the Carl E. Smith real estate company in Jackson County have
allegedly diverted more than 21 million dollars from the business for their
personal use.
Fayette County Circuit Judge John W. Hatcher has ruled that majority owners
Eddie Burl Smith and his son, Michael Smith, along with Donald P. Smith, drained
the assets of Carl E. Smith Real Estate Incorporated.
The judge said the three family members used the money to buy horses, cars and
snowmobiles, calling their conduct pitiful.
The case was originally brought in 1999 by the real estate firm's minority owners,
including former treasurer Larry D. Smith.
He resigned as treasurer after discovering large cash withdrawals made by the
defendants.
The real estate company plans to file for federal bankruptcy protection this
month.
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