In March 2018, an unnamed employee of the now-bankrupt Reagor Dykes Auto Group asked former CFO Shane Smith in an email, "Are we fake flooring again on Monday?" Smith, according to the FBI, replied that they would at least prepare for the fake flooring: "Just get them ready and we'll see how we do each day."
The exchange is a snapshot in a fraud and check- kiting scheme that federal prosecutors allege occurred at Reagor Dykes, a 21-store Texas group that imploded last summer after Ford Motor Credit Co., and then other lenders, sued, alleging rampant floorplan fraud.
The allegations have resulted in a fraud charge and possible prison sentence for Smith. They mark a striking turn in the Reagor Dykes collapse as criminal charges are rare in lender fraud cases involving dealerships.