AMARILLO and LUBBOCK, Texas — Tuesday was the first day of testimony in the trial of Bart Reagor, the Lubbock businessman accused of bank fraud and making false statements to a bank.
Reagor was, along with Rick Dykes, a co-owner of the Reagor Dykes Auto Group. RDAG and its associated companies crumbled into bankruptcy in August 2018 after accusations of fraud and default.
The trial started Monday in the federal courthouse in Amarillo with jury selection. In opening arguments Tuesday morning, federal prosecutors laid out the case that Reagor lied to IBC Bank as part of a $10 million loan in 2017.
Prosecutors said Reagor took $1.7 million of the money. Reagor admits taking that amount but claims there was nothing wrong with that.
Prosecutors quoted an email from the time in question where Reagor said his intent to take the money was “100 million percent confidential.” The email was between Reagor, Dykes and former company CFO Shane Smith.
Prosecutors told the jury that IBC was never told Reagor would reimburse himself or pay himself from the loan. IBC believed it was only to be used inside the business as working capital.
Prosecutors said Reagor actively concealed and asked others to actively conceal the money he took.
The defense team, including former Lubbock County District Attorney Matt Powell, said to the jury that Reagor “committed no crime.”
The defense blamed everything on Smith. They referred to him as “Judas” and “rotten in the woodpile.” They said Smith negotiated the terms of the loan with IBC, not Reagor.
Smith pleaded guilty in 2019 and will be sentenced at a later date to no more than 20 years. Part of the deal is that Smith must cooperate with prosecutors.
Smith is on the witness list and could testify on Tuesday afternoon.
This is an ongoing story. Please check back for updates.