AMARILLO, Texas (KAMR/KCIT) – Officials with the prosecution are responding after Bart Reagor’s defense team made a motion earlier this month for Reagor to be acquitted, or for Reagor to receive a new trial.
This comes after a jury convicted the Reagor-Dykes Auto Group co-founder of one count of making false statements to a bank, and finding him not guilty on two counts of bank fraud during a week-long trial in October. During the trial, members of the prosecution’s counsel stated that Reagor has a “secret” plan of taking $1,766,277.77 out of a $10 million capital loan from the International Bank of Commerce (IBC) and used it for personal gain after officials told the bank that it was solely to be used for the growth of the auto group.
According to previous reports by MyHighPlains.com, officials with the defense referenced the unclear definition of “working capital” throughout the trial, stressing that the evidence presented by the prosecution was not enough to sustain Reagor’s conviction.
According to court documents filed Monday, the prosecution claims that the defense failed to “afford the proper deference and weight to the jury verdict,” stressing that the evidence presented at trial supported the jury’s ultimate verdict beyond a reasonable doubt.
Throughout the 10-page report, officials from the prosecution reference various pieces of evidence and portions of the trial which they claim support the ultimate conviction. This includes testimony from Steven Reinhart, the auto group’s former legal compliance director, who testified that if he was consulted about the use of the working capital funds, he would have discouraged Reagor from using the funds in that way.
Prosecution officials also reference Exhibit 41, an email with the subject line “HANDLING CAPITAL,” that was referenced multiple times throughout the trial. This email, sent at 8:11 p.m. on May 31, 2017 to Shane Smith, the auto group’s former chief financial officer, and Reagor-Dykes Auto Group co-founder Rick Dykes, outlined the process of the use of the working capital loan.
The email reads “How we are going to manage this capital is 100000000% confidential between us and is not ANYONE ELSE’S BUSINESS!!!!!! NOBODY’S!!!!!!!!!!!!! NO BANKERS OR ANYONE ELSE! OUR BUSINESS! GAME ON!!!!!!!!!!!!!”
The prosecution claims that the email intentionally excluded anyone who would raise objection to the use of these funds, including Reinhart and other attorneys within the auto group as well as representatives from IBC.
“Reagor purposely did so because he knew that Smith would dutifully follow his instructions and would not question the propriety of diverting a business loan for personal use. Reagor also knew that Dykes, who stood to gain $1.76 million from Reagor’s deception, would not question Reagor’s instructions. Accordingly, Reagor included in his cabal only those who would not challenge his underhanded instructions,” the documents read. “…The Court must presume that the jury used this evidence to logically surmise that Reagor instructed Smith and Dykes to keep his plan a secret because Reagor knew that his intention to use the IBC business loan for personal expenses – on things like his mansion, investments, and disbursements to family members – was dishonest and wrong.”
Officials also referenced the “substantial evidence” of Reagor’s motive through other exhibits, including audio recordings stating his intent to build his wealth with “other people’s money.” The prosecution claims that “Reagor’s self-image and self-worth were inextricably intertwined with his personal wealth and that led him to maintain his personal wealth by any means necessary, including deception.”
Officials from the prosecution believe that ample evidence to support the jury’s conviction was presented to them, causing the prosecution to urge the Court to deny the defense’s motion for acquittal and deny the defense’s request for a new trial.
“The jury had compelling evidence that Reagor knew his statement was false because, prior to making it, he had already formed the intent to divert a portion of the proceeds, and he knew the diversion was wrong because he actively concealed it from IBC and from his own legal and compliance officers,” the documents read. “…(Reagor) openly bragged about the lengths to which he had gone to get other people’s money to increase his own net worth. And finally, the jury was aware of Reagor’s powerful motive to wrongfully take the loan proceeds- unmitigated greed.”
Officials with Amarillo Federal Court previously stated that Reagor is scheduled to be sentenced at 1:30 p.m. Feb. 24, 2022, and faces up to 30 years in federal prison, according to the United States Department of Justice.
This story is developing. Check with MyHighPlains.com for updates