Reagor-Dykes Accuses Vista Bank President of Helping With Fraud
On Wednesday, January 29th, Reagor-Dykes filed a document claiming that Vista Bank President John Steinmetz was helping former RD Chief Financial Officer Shane Smith with fraud.
Reagor-Dykes filed for bankruptcy in August 2018. Since then, 12 former Reagor-Dykes employees have pleaded guilty to charges relating to fraud.
Vista Bank filed a claim in bankruptcy court for permission to keep funds that Reagor-Dykes totaled more than $13 million. KAMC News reports that Vista wanted to keep over $1 million to offset the loss.
Reagor-Dykes claimed that Vista Bank allowed former CFO Shane Smith to carry out a check-kiting scheme, arguing that since Vista participated, they are not a victim.
Vista Bank released a statement in regards to this accusation:
After over a year and a half in bankruptcy, three failed attempts to reorganize, and racking up over $5 million in unpaid legal fees for the Chief Restructuring Officer and his lawyers, today they filed a complaint in a last ditch attempt to shake down Vista Bank for money before their upcoming February 12, 2020 bankruptcy hearing where they face potential forced liquidation.
As conclusively established by the twelve (12) criminal felony guilty pleas (with more surely to come) in addition to the overwhelming record of the pending criminal, bankruptcy and litigation proceedings involving the Debtors:
- the Debtors and their insiders perpetrated the frauds causing the Debtors’insolvency and bankruptcy resulting in harm to Vista Bank as well as the Debtors’ other third-party creditors; and
- as detailed in its filed proofs of claim, Vista Bank suffered at least $13 million in damages as a direct result of this confessed fraud.
- Mr. Steinmetz paid over $120,000 in lease/buyout payments for the noted vehicles. Evenif that was a ‘good deal,’ West Texans have too much common sense to believe Mr. Steinmetz would have sold his bank out to the tune of millions of dollars in order to save afew thousand on a couple of cars.
- Not a single bank or banker has been implicated in any of the RDAG guilty pleas.
For the CRO’s legal counsel to file this complaint is akin to a thief robbing someone, getting caught, pleading guilty to the felony, and then suing the victim to pay for it all. Vista Bank refuses to be extorted by the criminals who ran Reagor-Dykes. For that reason, last month Vista Bank sued RDAG to preemptively defeat its frivolous claims. Attached is a copy of Vista Bank’s lawsuit.