Reagor-Dykes Files New Court Complaint Against Ford Motor Credit
The Reagor-Dykes bankruptcy case is still pending, but there is a new development. The Reagor-Dykes estate has filed a complaint against Ford Motor Credit, claiming to be owed over $315 million dollars.
Reagor-Dykes is accusing Ford of allowing massive financial fraud to transpire at Reagor Dykes. According to the complaint, there were clear signs that financial fraud was taking place at Reagor Dykes long before the company filed for bankruptcy on August 1st, 2018.
Reagor-Dykes claims that financial records show that the Reagor-Dykes Floydada location sold more than $6.3 million dollars worth of vehicles in March of 2018, which would have oddly been more than 90 percent of the Floydada inventory. Reagor-Dykes says Ford should have noticed that when they conducted an audit of the Reagor-Dykes company that same month.
In other words, Ford either knew about or should have known about the fraud taking place at Reagor-Dykes due to multiple audits Ford had conducted, but did nothing about it until they sued the Reagor-Dykes company in July of 2018, forcing them to file for bankruptcy. Reagor-Dykes says it’s entitled to over $315 million dollars the company paid out to Ford over 2 years of operation before the company filed for bankruptcy.
Since the company has filed for bankruptcy, 14 former employees of Reagor-Dykes have been implicated in a complex financial fraud scheme, involving a tactic called check kiting, that defrauded local banks, Reagor-Dykes and Ford Motor Credit of millions of dollars.
In 2019, Reagor Dykes' former CFO, Shane Smith, was charged with one count of wire fraud and accepted a plea deal for his role in coordinating the financial fraud at Reagor-Dykes. The new complaint from Reagor-Dykes makes note that Shane Smith used to work for Ford Motor Credit and that he was good friends with Dallas Regional Manager for Ford Motor Credit, Gary Byrd, during the financial fraud scheme.
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