LITTLE ROCK — The U.S. Justice Department said Wednesday it has sued the estate and trusts of the late Layton P. Stuart, alleging that he fraudulently obtained money from the federal bank bailout for his Little Rock bank.

LITTLE ROCK — The U.S. Justice Department said Wednesday it has sued the estate and trusts of the late Layton P. Stuart, alleging that he fraudulently obtained money from the federal bank bailout for his Little Rock bank.


The suit, filed in U.S. District Court in the District of Columbia, alleges that Stuart, former owner and president of One Financial Corp. and its subsidiary, One Bank & Trust, made misrepresentations to induce the Treasury Department to invest $17.3 million from the Troubled Asset Relief Program in One Financial as part of Treasury’s Capital Purchase Program.


Stuart applied for the stimulus money in late 2008. The suit alleges that in his application he concealed repeated acts of fraud that he and other One Financial directors and bank executives were committing and intended to continue committing.


The schemes allegedly involved Stuart’s diversion of funds from One Bank for personal use including, within 30 days of receiving the $17.3 million in TARP funds, the diversion of more than $2 million into personal accounts for his own use.


Stuart was fired from One Bank in September 2012. He died in March 2013.