Reagor-Dykes Auto Group Co-Owner Rick Dykes has agreed to pay Ford Motor Credit Co. $58.7 million, about half of what the captive claimed it was owed.
Bart Reagor, the former chief executive and the other co-owner, is not mentioned in the April 2 consent order; a civil suit against him is still pending.
Ford Credit had claimed in a Jan. 7 motion that it was owed $112 million from Reagor Dykes Auto Group and its owners for “hiding what may be one of the largest floorplan financing frauds in the history of the U.S. from Ford Credit.”
Read More: Ford Motor Credit Demands $112M From Dealership Chain for Fraud Scheme
The captive claimed that the dealer group falsified sales information to the captive, obtained advances under false pretenses, and sold more than 1,100 vehicles without repaying their floorplans.
In a separate practice, the dealership allegedly delayed sales dates by 55 days, enabling it to obtain floorplan financing for 147 vehicles it had already sold, according to Ford Credit’s lawsuit.
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