News/Talk 95.1 & 790 KFYO logo
Get our free mobile app

Bart Reagor, formerly of the Reagor-Dykes Auto Group, has been federally indicted on two counts of bank fraud and one count of making false statements to a bank.

The indictment says that in early 2017, one of Reagor-Dykes' floorplan lenders conducted an audit that placed them in a "weak cash position." In an attempt to obtain money to continue business operations, the indictment claims a limited liability company formed to hold Reagor-Dykes real estate assets, D & R Acquisitions, entered into a loan agreement with International Bank of Commerce.

It's alleged that when applying for the loan, Bart Reagor misrepresented its purpose. It's said that Reagor hid the fact that he was going to be diverting some of the proceeds from the working capital loan into his own account for personal expenses.

Reagor is said to have diverted a total of around $1.7 million into his personal account.

Acting US Attorney Prerak Shah said:

Even as his businesses struggled financially, Mr. Reagor diverted business loan funds into his personal bank accounts, expressly violating his agreement with the bank. Lying to an FDIC-insured financial institution is a federal crime, one we will not abide. We are determined to hold to account every Reagor Dykes employee who engaged in financial misconduct.

If convicted of the aforementioned charges, Reagor faces a maximum of 90 years in federal prison.

Fifteen former Reagor-Dykes employees have already pleaded guilty to their roles in a check kiting scheme that led to the company's bankruptcy in August 2018. One of those employees was Reagor-Dykes CFO Shane Smith. He pleaded guilty in June 2019 to conspiracy to commit wire fraud.

Lubbock’s Epic $2 Million Dollar Home Has an Indoor Basketball Court

Expensive Airbnb Stays in Lubbock, Texas



More From News/Talk 95.1 & 790 KFYO