Former Reagor-Dykes CFO Shane Smith Receives 7-Year Prison Sentence
On Thursday, January 20th, the former Chief Financial Officer for the Reagor-Dykes Auto Group, Shane Smith, was sentenced to 7 years in prison.
In August 2018, the Reagor-Dykes Auto Group went bankrupt following accusations from Ford Motor Credit of floor plan fraud. Smith actually pleaded guilty to conspiracy to commit wire fraud in June 2018.
KAMC News reports that Smith and 14 other former employees have pleaded guilty and have been sentenced for their role in the scheme. Mathew DeSarno, special agent in charge of the FBI's Dallas division, said this about Smith:
By the time Mr. Smith was charged in 2019, Reagor Dykes was a cesspool of criminal schemes, from check kiting to dummy flooring. We are proud of the work we’ve done to hold this defendant – and more than a dozen of his coworkers – accountable for their egregious behavior.
The maximum penalty for conspiracy to commit wire fraud is 20 years, so Smith is serving less than half the maximum sentence. He will have to report to prison by Monday, March 28th, 2022.
Former RDAG co-owner, Bart Reagor, claimed to have never known about the fraud, but still faces charges himself.
Reagor was found guilty in October 2021 of making a false statement to a bank. Prosecutors argued that when Reagor transferred $1.76 million from an IBC Bank loan into his own personal account, he knew it was wrong. Reagor still claims that he didn't believe there was anything wrong with this.
Reagor's sentencing date has been pushed back to March 10th, 2022.
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