Shane Smith Accused of Falsely Inflating Commissions
Shane Smith, the former Chief Financial Officer of the Reagor-Dykes Auto Group, is now accused of taking over $525,000 dollars he was not entitled to have.
Back in June of 2019, Smith pleaded guilty to conspiracy to commit wire fraud in relation to the Reagor-Dykes bankruptcy scandal, however the new claim of misconduct against Smith describes an insurance policy Reagor-Dykes had with Travelers Insurance.
KAMC News reports that Smith's compensation was a base salary plus entitlement to an 8% commission on the net profits.
Court records said Smith had recorded multiple false accounting entries to improve the reported profits of the company.
This accounting is said to have falsely inflated commissions due to Smith, and thus the parties have agreed upon the gross amount of a bit over $527,000 dollars to resolve the RD bankruptcy estate’s claim.