The executive assistant for former Reagor-Dykes Chief Financial Officer Shane Smith is the 9th employee to plead guilty for her role in the dealership group’s floorplan fraud scheme against Ford Motor Credit, according to the U.S. Attorney for the Northern District of Texas.
FBI investigations reveal that Ashley Nicole Dunn, Smith’s executive assistant, has admitted that she was one of the co-conspirators that falsely inflated the daily balances of the dealership’s bank accounts.
So far, nine employees have admitted to their roles in covering the dealership’s “double flooring” scheme, in which Smith instructed staff to artificially inflate the company’s bank account balance by cross-depositing insufficient checks, according to court documents. Vendor and payroll checks that should have bounced were instead cleared during the time between the deposit in the recipient account and the deduction from the payer’s account.
Reagor-Dykes employees who have pleaded throughout the year guilty include:
- Ashley Nicole Dunn, executive assistant to the CFO
- Brad William Fansler, RDAG group administrative director
- Paige Anna Johnston, office manager for the Reagor-Dykes location in Floydada, Texas
- Sheila Evans Miller, RDAG group controller
- Pepper Laray Rickman, accounting controller at Reagor-Dykes Plainview
- Shane Andrew Smith, chief financial officer
- Diana Herrera Urias, office manager
- Lindsay Clare Williams, group accounting manager
- Sherri Lynn Wood, office manager of Reagor-Dykes Plainview
The trio of executives at the helm of the Texas-based dealership group have been ordered to shell out a combined $162.4 million in restitution, including Chief Executive Bart Reagor, Co-Owner Rick Dykes, and Smith. Smith is the only one of the three executives that has pleaded guilty in the case; his sentencing is scheduled for Jan. 7, 2020, and he faces up to 20 years in prison.
Ford Credit sued Reagor-Dykes Auto Group in August 2018, and the dealership chain subsequently filed for Chapter 11 bankruptcy. Ford Credit served as the floorplan lender to six of Reagor-Dykes’ 13 locations across Texas. GM Financial was the floorplan lender to one dealership location in Snyder, Texas. Other lenders involved include First Capital Bank, First Bank & Trust, AIM Bank and Vista Bank. A total of 19 banks were victimized by the dealership group.
Reagor-Dykes is also awaiting approval on a proposed $14 million restructuring plan submitted to the court on June 29. However, GMF recently filed a motion urging the court to reject the restructuring plan.
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