More than a year after Ford Motor Credit sued Reagor-Dykes Auto Group for hiding one of the largest floorplan financing frauds in history, the dealership chain’s chief executive has been ordered to pay up.
Bart Reagor is required to pay the captive $53.8 million, according to a final ruling decided after a two-day jury trial with a unanimous verdict on Oct. 3 in Lubbock, Texas, federal district court.
With a final ruling on the amount of money Reagor owes Ford Credit, 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. Co-owner Rick Dykes settled in April and agreed to pay the captive $58.7 million, while Chief Financial Officer Shane Smith pleaded guilty to defrauding the captive and agreed to pay $50 million in restitution. Smith has been the only person charged with a crime in this 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.
Reagor-Dykes awaits approval on a proposed $14 million restructuring plan submitted to the court on June 29.
