Ninth Reagor Dykes employee pleads guilty
A ninth former Reagor Dykes Auto Group accounting employee recently pleaded guilty to fraud in Amarillo federal court.
Ashley Nicole Dunn, former executive assistant to Chief Financial Officer Shane Smith, pleaded guilty this week to one count of bank fraud. Dunn is the fourth employee to plead guilty to the charge. Nine former Reagor Dykes employees total have pleaded guilty to fraud charges.
Dunn faces up to five years in prison and more than $23 million in fines and restitution to affected banks. A sentencing hearing has not yet been scheduled.
Dunn was involved in a check kiting scheme that involved 19 accounts in at least eight banks, according to court documents. Checks were cross deposited between checking accounts to artificially inflate balances.
Read more: https://www.amarillo.com/business/20191205/ninth-reagor-dykes-employee-pleads-guilty
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Vista Bank asks bankruptcy court to absolve claimed Reagor Dykes liabilities
Vista Bank filed a declaratory judgment action in bankruptcy court Wednesday night with the goal of being cleared from liabilities in the ongoing Reagor Dykes Auto Group legal cases.
Vista Bank is a creditor in the ongoing Chapter 11 Reagor Dykes bankruptcy. The new filing states a check-kiting fraud scheme perpetrated by the dealerships resulted in $13 million in damages. Check-kiting involves cross-depositing checks to float insufficient bank accounts.
Four former Reagor Dykes employees have pleaded guilty as of Thursday to bank fraud for their roles in the schemes. Five other employees have pleaded guilty to wire fraud for other accounting scams. More guilty pleas are expected.
Fernando Bustos, who has represented Vista Bank throughout this case, said no bank employees have been implicated in the ongoing criminal investigation.
Read more: https://www.amarillo.com/business/20191205/vista-bank-asks-bankruptcy-court-to-absolve-claimed-reagor-dykes-liabilities