A first wave of former Reagor-Dykes employees were sentenced Tuesday for their roles in the spectacular collapse of the Lubbock, Texas, dealership group.
Court records were not yet available online, according to a clerk at the federal court in Amarillo, Texas, where the criminal cases have been held. But local media reports say the six employees received prison sentences ranging from two to four years and were ordered to pay restitution of $100-$200 per month.
They pleaded guilty to a range of charges related to a purported floorplan fraud and check-kiting operation that the FBI began investigating as far back as February 2018.
Nine other employees who pleaded guilty to similar charges await sentencing in the coming days and months, including Shane Smith, a former Reagor Dykes CFO whom dealer principals blamed for the group's financial improprieties. Smith is set to be sentenced July 27.
Meanwhile, former dealer principal Bart Reagor was indicted by a federal grand jury on two counts of bank fraud and one count of making false statements to a bank insured by the FDIC. Reagor is alleged to have diverted more than $1.7 million of a commercial loan to his personal bank account, which was prohibited by the loan agreement.
If convicted, he faces up to 90 years in federal prison and will be required to forfeit any property traceable to the alleged offense, the U.S. Attorney's Office said in announcing the charges April 22. He pleaded not guilty.