Prosecutors have secured their 10th guilty plea in the on-going Reagor-Dykes case, according to court documents filed in Amarillo, Texas on Wednesday.
Elaina Marie Cabal, former finance assistant and office manager at two Reagor-Dykes dealerships, pled guilty to conspiracy to commit wire fraud. Cabal’s guilty plea is the second dealership employee to admit guilt this month.
Cabal was material in conspiring with former Chief Financial Officer Shane Smith in providing Ford Motor Credit Co. with false information regarding vehicles at the dealership, receiving additional financing from Ford Credit, and delaying payment to the captive for vehicles previously sold in the floorplan fraud scheme that totaled $27 million.
The breakdown is as follows: 409 vehicles worth $13.8 million were absent from the dealership chain’s inventory; 352 vehicles were sold and funded, totaling $11.6 million; and 37 vehicles worth $1.6 million were “double-floored.”
Cabal’s sentencing hearing is scheduled for April 14, 2020. She faces up to five years in prison, a maximum fine of $250,000, and restitution payments equal to the total loss Ford Credit incurred as a result of the floorplan scheme.
The dealership chain is currently awaiting approval from the United States Bankruptcy Court on its $14 million restructuring plan that the dealership chain hopes will keep some of its locations in operations. GM Financial, another floorplan financier for the Lubbock-based dealer group, is fighting the proposal in court, calling it “inadequate.”
For more content like this, join us at the upcoming Auto Finance Accelerate event, March 9-11, at the Omni San Diego. Combining three crucial topics in auto lending and leasing, Auto Finance Accelerate dives into the strategies and knowledge needed to enhance your company’s auto finance sales, marketing, and innovation. Register before Friday, January 31st to save with early registration rates. Visit www.AutoFinanceAccelerate.com to learn more.