AMARILLO, Texas (KAMR/KCIT) — A former Reagor-Dykes Auto Group employee was recently sentenced to time in federal prison for his role in the auto group’s scheme after pleading guilty to one count of “misprision of a felony” in early 2021.

According to federal court documents, Steven Reinhart, the auto group’s former legal compliance director, was sentenced to six months in federal prison after pleading guilty to one count of “misprision of a felony.” Reinhart joins the more than 10 individuals charged in the auto group’s fraud scheme, coming after the auto group defrauded Ford Motor Credit through check-kiting and other related fraud instances. Check-kiting is when an entity transfers checks between banks, showing that money is available in an account when there is none.

Reinhart, along with a number of others involved in the scheme, was also required to jointly pay a $40,254,297.72 restitution to Ford Motor Credit. Documents state that Reinhart will be required to make payments on the unpaid balance of the resolution “at the rate of at least $500 per month.”

According to previous reports by MyHighPlains.com, Reinhart testified during the jury trial of Reagor-Dykes Auto Group co-founder Bart Reagor in October 2021. After the week-long trial, a jury convicted Reagor of one count of making false statements to a bank and found him not guilty on two counts of bank fraud

Court documents state that Reinhart is required to appear at the “institution designated by the Bureau of Prisons” before 2 p.m. April 11. After Reinhart completes his six month-sentence, he will be placed on supervised release for one year. Reagor was convicted of intentionally using $1,766,277.77 out of a $10 million capital loan from the International Bank of Commerce (IBC) for personal gain after officials told the bank that it was solely to be used for the growth of the auto group.

During the trial, Reinhart said his role was serving as the liaison between the auto group and outside counsel, along with serving as the supervisor for the auto group’s attorneys. Reinhart said he was first aware of the loan from IBC when Shane Smith, Reinhart’s supervisor and the auto group’s former chief financial officer, asked Reinhart to review the loan agreement documents, the purpose of which was for working capital. Smith pleaded guilty in June 2019 to one count of conspiracy to commit wire fraud.

Reinhart recollected during the trial that he found out that Reagor used the working capital funds for personal use after the day the dealerships filed for bankruptcy in August 2018. Reinhart said at the trial that if he knew Reagor’s intention, he would have told Reagor that he could not use a portion of the IBC loan for his personal use.

According to previous reports by MyHighPlains.com, Smith is scheduled to have his sentencing hearing at 1:30 p.m. Thursday (Jan. 20) in Amarillo Federal Court. Reagor is scheduled to be sentenced at 10 a.m. March 10 in Amarillo Federal Court.