Bart Reagor states he had no knowledge of fraud, check kiting
Nearly 11 months after Ford Credit sued the Reagor-Dykes Auto Group and its principals, claiming massive fraud, and the subsequent bankruptcy filings by many associated companies, Bart Reagor has released public comments through a media consulting firm.
“I had no idea," Reagor said in the media release. "There was absolutely no reason for me to think there was any major fraud going on. I assure you I had no knowledge of any floor plan fraud. I had no knowledge of any check kiting."
Dolcefino Consulting, identified on its website as "Wartime Media Consulting", released written comments and a video of Reagor Monday, stating he had no knowledge of alleged fraud claims from Ford Credit and several local banks.
Dolcefino Consulting is the same agency that has represented Mike Leach in battles vs. Texas Tech in recent years regarding his 2009 firing.
Just this last week we learned former Reagor-Dykes chief financial officer Shane Smith is pleading guilty to a federal charge of conspiracy to commit wire fraud. He faces up to 20 years in prison and restitution of at least $50 million.
In court documents, Smith admits to his role in both floor plan financing fraud and check kiting. The documents state "co-conspirators" were involved, but none were named. Several witnesses told the FBI Reagor-Dykes, according to plea documents, "was under-capitalized because of its aggressive growth and acquisitions of new dealerships, above-market employee compensation, and unnecessary overhead. As a result, RDAG did not have the necessary capital on hand to make those large payments to [Ford Motor Credit Corporation] after floor plan audits. To compensate, RDAG kited intercompany checks to falsely inflate its account balances."
Documents released with the plea show FBI investigators believe, just before the Auto Group's collapse last summer, Reagor-Dykes had an entire team at its headquarters designed to kite checks.
In the comments released Monday, Reagor said he wasn't heavily involved with his company's financials.
"I wish I had been more of a financial expert and gotten involved in that area of the company, but honestly that wasn’t my thing, you know," Reagor said in the release and in the video provided. "I’m a commercial guy, I’m a sales guy, I’m a marketing guy. Every Friday I got a bank balance report from my CFO. Every month I got financial statements on all the stores from my CFO. Every three months we had quarterly audits from Ford Motor Credit Company.”
As for bankruptcy proceedings, the judge has approved a schedule requiring the Reagor-Dykes companies to submit a reorganization plan by Monday, July 1. A plan sponsor must deposit $1 million by Aug. 23, the plan confirmed by Sept. 2. Attorneys for the debtors said there are four prospective investors, all requiring Rick Dykes remain part of the company.
During last week's hearing, Reagor-Dykes attorneys said, out of 1,504 customers with registration or trade-in issues, 844 cases remain unresolved.
The bankruptcy filings placed an automatic stay on Ford Motor Credit's lawsuit against the many Reagor-Dykes companies. The suit was later amended to list just Rick Dykes and Bart Reagor as defendants. Senior District Judge Sam Cummings ruled summary judgment in Ford Credit's favor. Dykes agreed to a $58.7 million judgment. Reagor argued Ford Credit must identify, line by line, how it came up with the figure of $46.7 million he owes. A hearing on this matter is scheduled for July 11.
This is the video Dolcefino Consulting provided to media outlets Monday:
There is a longer video on Dolcefino Consulting's Facebook page.
Below is the news release from the PR firm representing Reagor. The content is solely from Dolcefino Consulting.
For 11 long months, a very frustrated Bart Reagor was told by lawyers to remain silent while his West Texas car dealerships imploded amidst allegations of fraud leveled by banks and Ford Motor Credit.
Reagor is now breaking his silence.
“I had no idea. There was absolutely no reason for me to think there was any major fraud going on. I assure you I had no knowledge of any floor plan fraud. I had no knowledge of any check kiting. I don’t have anything to hide, I have nothing to hide, I have nothing to fear,” Reagor told Dolcefino Consulting in his first interview. “I have no doubt about the fact that I had no involvement in what caused this situation.”
Reagor’s first public comments come just days after his former chief financial officer Shane Smith pleaded guilty to wire fraud. He faces up to 20 years in prison.
“I’m still confused about why he would do anything to put us in this position, other than greed. Or if there was somebody he was taking direction from besides me,” Reagor said. “I wish I had been more of a financial expert and gotten involved in that area of the company, but honestly that wasn’t my thing, you know. I’m a commercial guy, I’m a sales guy, I’m a marketing guy. Every Friday I got a bank balance report from my CFO. Every month I got financial statements on all the stores from my CFO. Every three months we had quarterly audits from Ford Motor Credit Company.”
Reagor was on vacation when Ford Motor Credit came in to close the Reagor-Dykes dealerships down. Only a few weeks before, the dealerships had been praised by Ford Motor Credit after the routine quarterly audit of the inventory. The Reagor Dykes dealerships had been presented with two President Awards for its work with Ford.
“Sixteen days before they came in here and destroyed my company, they were telling me thank you Bart, you are a great dealer, you are one of the best dealers we have, let’s celebrate your success,” Reagor said. “All of a sudden, I am on vacation halfway across the world, and they tell me I owe them 40 million dollars. There’s no way.”
“Those first couple of weeks, I lost twenty-one pounds in like ten days. It’s been a massive disaster, since July 26th, 2018, my life’s never been the same.”
Reagor spoke with us as he was moving out the final boxes from his former headquarters in the Green Building on Avenue J.
“It kind of makes me sick. Now you are going to make me get teared up,” Reagor said.
Reagor had invested heavily in redeveloping Lubbock and financed a billboard campaign labeling the city the Friendliest city in America. The former Texas Tech football standout was known for his sizeable donations and support of charities, from Casa to Make a Wish.
“I’ve never tried to do anything but good for Lubbock, West Texas, the car business, Ford Motor Credit company.”
Reagor opened his first dealership at the Reagor auto mall. Tall weeds have sprung up through the concrete, but the lot is still full of cars. A tattered flag with the company’s logo still flies outside.
“I don’t know who owns these cars out here. I know I don’t own them. I don’t know who owns these buildings right now, I don’t own them anymore.”
“It’s been hard on me because of my family, it’s been really hard on my wife. She doesn’t even want to go the grocery store”, Reagor told Dolcefino Consulting. “I have had to pray a lot, and I have had to call on the Lord a lot, call on my friends a lot and my family. Yeah it was hard. It was the hardest thing I have been through in my life. You really find out who your friends are when something like this happens.”
“When you see what was being built here and you see what happened, what are you thinking,” Dolcefino Consulting President Wayne Dolcefino asked. “It makes me really angry,” Reagor told us.
Reagor expressed frustration that so many customers had title issues with cars after he lost control of the company.
“Now that I have had almost eleven months to figure out what went wrong, what went wrong was there was a lot of things going on in the financial area of our business that were corrupt,” Reagor said. “I am not done by a long shot. A lot of people made a lot of money on this game at my expense.”
The italicized content above is a news release from Dolcefino Consulting. All quotes were released by the company representing Reagor, not from interviews our news team conducted.
JUNE 21: Judge approves bankruptcy plan schedule for Reagor-Dykes
JUNE 19: Former Reagor-Dykes CFO pleads to federal conspiracy charge
JUNE 18: July 11 hearing set on amount Reagor owes Ford Credit
JUNE 17: Reagor: Ford Credit must show its work on how much it's owed
JUNE 3: Ford Credit: Bart Reagor owes $46 million plus interest
MAY 24: Ford Credit wins; court orders Reagor to pay
MAY 22: Progress reported in resolving Reagor-Dykes registration issues
MAY 9: Oklahoma bank sues Reagor, Dykes, offshore financial companies for $26 million
MAY 6: State of Texas sues Reagor, Dykes for more than $50,000 in sales taxes
APRIL 24: Reagor-Dykes registration issues may soon be resolved
APRIL 16: Bart, Annette Reagor deny breaching insurance corporation contracts in $2.4 million suit
APRIL 10: Progress but no agreement, just yet, on Reagor-Dykes TT&L plan
APRIL 8: Multiple objections filed to Reagor-Dykes' registration solution proposal
APRIL 2: Filing: Rick Dykes agrees to $58.7 million judgment to Ford Credit
MARCH 23: Universal Underwriters sues Reagors, claims Auto Group defaulted on contracts
MARCH 21: Vista Bank: FirstCapital Bank 'sealed the demise' of Reagor-Dykes with fraudulent agreement
MARCH 20: 700 Reagor-Dykes customers still have unresolved TT&L, trade-in
MARCH 19: Proposal could resolve many Reagor-Dykes registration, title issues
MARCH 19: Landlord: Reagor-Dykes Plainview abandoned in 'extreme disrepair'
FEB. 23: Dykes, Reagor response claims Ford Credit should have seen problems
FEB. 19: UPDATED: Reagor-Dykes mediation next week in Dallas
FEB. 15: Read order directing global mediation in Reagor-Dykes bankruptcy
FEB. 14: Judge orders Ford Credit to participate in Reagor-Dykes 'global mediation'
FEB. 11: Judge approves AmeriCredit's request for hearing on Reagor-Dykes Snyder
FEB. 8: Judge orders TT&L lists turned over to creditor, others request info
FEB. 8: GM Financial, citing 'little opportunity' for meaningful progress, requests access to relief
FEB. 8: Judge denies Reagor-Dykes request to delay summary judgment
FEB. 7: Landlord orders Reagor-Dykes out, another phone hearing next week
FEB. 7: Ford Credit objects to Reagor-Dykes' attempt at 'global mediation'
FEB. 6: First Bank & Trust opposes 'global mediation' for Reagor-Dykes
FEB. 6: Reagor-Dykes requests global mediation in bankruptcy
FEB. 6: Reagor and Dykes argue if Ford Credit was complicit in fraud, two men not responsible for $109 million+
JAN. 31: Reagor-Dykes seeks appeal of Bankruptcy Judge's order
JAN. 31: McDougal no longer involved in Reagor-Dykes re-organization effort
JAN. 28: Nearly 6 months later, hundreds of Reagor-Dykes customers still in limbo
JAN. 23: FirstCapital Bank allows Reagor-Dykes to use cash collateral
JAN. 18: Future uncertain for Reagor-Dykes Auto Group after recent ruling
JAN. 17: Judge: Ford Credit may repossess Reagor-Dykes vehicles
JAN. 9: Court approves Reagor-Dykes interim funding
JAN. 8: Reagor-Dykes, Ford Credit argue future of Auto Group in bankruptcy court
JAN. 8: Citing possible criminal investigation, former Reagor-Dykes CFO requests stay on discovery
JAN. 8: Ford Credit: Reagor, Dykes signed guaranties, should pay $112 million+ in relief
JAN. 7: Reagor-Dykes files reorganization plan
JAN. 7: 'Reagor-Dykes is not dead', Auto Group files response to Ford Credit's demands
JAN. 4: With no reorganization plan yet filed, Ford Credit seeks to take possession of Reagor-Dykes vehicles
JAN. 3: Lender asks bankruptcy court to force Reagor-Dykes legal team to produce documents
DEC. 26: UPDATE: Court allows Ford Credit lawsuit to proceed against Bart Reagor, Rick Dykes
DEC. 12: Slow progress reported on Reagor-Dykes customers' TT&L, trade-ins
NOV. 29: McDougal, Ewing and Dykes lead group to purchase Reagor-Dykes assets
NOV. 21 Former Reagor-Dykes CFO requests change of venue in lawsuit
NOV. 20: Toyota, GM file objections in Reagor-Dykes bid process
NOV. 14: State may extend titles for some Reagor-Dykes customers
NOV. 2: Five more Reagor-Dykes entities petition for bankruptcy
OCT. 29: Reagor-Dykes TT&L, trade-in issues remain unresolved; progress reported with some lenders
OCT. 29: Bart Reagor, Reagor Auto Mall claim First Bank & Trust party at fault
OCT. 29: Vista Bank asks to recoup funds in Reagor-Dykes accounts
OCT. 18: No resolution yet on Reagor-Dykes customers' unpaid TT&L, trade-in liens
OCT. 17: More lenders object to Reagor-Dykes' request for TT&L, trade-in payment
OCT. 16: U.S. Bank objects to Reagor-Dykes request for lenders to pay TT&L, trade-ins
OCT. 15: Compromise on vehicles in First Bank & Trust lawsuit v. Reagor Auto Mall
OCT. 15: Judge approves sale of Reagor-Dykes plane; Wells Fargo objects to portion of TT&L motion
OCT. 12: Ford Credit supports part of Reagor-Dykes' request for lenders to pay TT&L, trade-ins
OCT. 12: FirstCapital files counterclaim, motion to dismiss
OCT. 10: Reagor-Dykes aircraft to be sold, pending court approval
OCT. 10: Several filings in Reagor-Dykes bankruptcy case
OCT. 1: KamKad, Reagor-Dykes execute purchase agreement
SEPT. 24: FirstCapital Bank requests First Bank & Trust lawsuit against it, Reagor-Dykes, others move to federal court
SEPT. 21: Judge sets schedule, trial date in Vista Bank v FirstCapital Bank lawsuit
SEPT. 21: Former Reagor-Dykes CFO denies late payments, says Vista Bank attacked him, his family
SEPT. 20: Vista Bank sues former Reagor-Dykes CFO, claims loan default
SEPT. 19: Texas DMV: Reagor-Dykes should promptly resolve title issues
SEPT. 19: Brad, Kenneth Burgess file motion to dismiss Vista Bank lawsuit
SEPT. 18: First Capital Bank files motion to dismiss lawsuit
SEPT. 18: Court approves bid process for Reagor-Dykes Auto Group, extends use of cash collateral
SEPT. 17: Ford Credit, GM object to certain aspects of proposed Reagor-Dykes sale
SEPT. 14: Judge sets trial date in Ford Credit lawsuit vs. Reagor-Dykes
SEPT. 14: Reagor denies Ford Credit's claim vehicles sold out of trust
SEPT. 13: Dykes: Former Reagor-Dykes CFO admits he provided false info to Ford Credit
SEPT. 11: Reagor-Dykes Auto Group requests court to allow sale of company
SEPT. 4: Reagor-Dykes Auto Group establishes process to resolve customer problems
AUG. 31: International Bank of Commerce asks for court to allow it to foreclose on Reagor-Dykes dealerships
AUG. 31: More Reagor-Dykes companies, co-owners may soon file for chapter 11
AUG. 30: Court extends Reagor-Dykes employment of CRO; officer discusses potential dealership buyers
AUG. 29 : International Bank of Commerce asks for loan payment in Reagor-Dykes case
AUG. 29: Ford Credit objects to Reagor-Dykes earlier legal team
AUG. 27: Vista Bank doubles relief request in new federal suit against FirstCapital Bank
AUG. 25: Reagor-Dykes chief restructuring officer hires new legal team
AUG. 25: GM proceeding with termination of Reagor-Dykes Floydada
AUG. 23: Landlords demand rent for Reagor-Dykes dealerships in Lubbock, Plainview
AUG. 20: Ford Credit moves ahead with suit against Reagor, Dykes, some R-D companies
AUG. 18: Reagor-Dykes bankruptcy case: Read court order following Aug. 16 hearing
AUG. 17: Auto dealer claims Reagor-Dykes owes $513,000, vehicles may be in consumers' possession
AUG. 16: Vista Bank sues FirstCapital for $6 million, claims Dykes helped perpetrate check kiting scheme
AUG. 16: Bankruptcy court allows Reagor-Dykes continued use of cash collateral, hiring of CRO
AUG. 15: Reagor-Dykes Auto Group issues written apology
AUG. 14: Loss of Reagor-Dykes Chevrolet in Floydada a potential financial pitfall for city
AUG. 14: Vehicle auction company claims Reagor-Dykes owes it $687,000
AUG. 14: Ford Credit claims Reagor-Dykes is not following court orders; court grants extension to file docs
AUG. 13: U.S. Trustee opposes Reagor-Dykes request to hire chief restructuring officer
AUG. 10: Ford Credit: Reagor-Dykes fraud may be among largest of its type in U.S. history; GM files to terminate Floydada dealership
AUG. 9: Reagor-Dykes questions former CFO’s actions; Contractor claims $700,000 due now
AUG. 7: Former Reagor-Dykes employees claim they were not paid
AUG. 6: Customers concerned over Reagor-Dykes 'unwinding' process
AUG. 6: Ford suit against Reagor-Dykes on hold while bankruptcy case proceeds
AUG. 3: Judge approves Reagor-Dykes employee pay
AUG. 2: Mayor: Downtown Lubbock growth to remain strong regardless of Reagor-Dykes future
INITIAL STORY: Ford Motor Credit sues Reagor-Dykes; R-D files for chapter 11 bankruptcy