LUBBOCK, Texas (KLBK/KAMC)— A ninth former employee of Reagor Dykes accepted plea deal in federal court as revealed Thursday in official records.
Ashley Nicole Dunn, age not listed, admitted to conspiracy to commit bank fraud. Court records said she was hired in 2014 as the executive assistant to the Shane Smith. Smith is the former Chief Financial Officer and he too accepted a guilty plea this year in federal court.
“Dunn, and her co-conspirators were involved with an extensive check-kiting scheme involving at least 19 accounts located at several banks…” court records said. Eight banks were listed.
Check kiting is a form of bank fraud. It’s a way of trading checks between banks to make an account look like it has money when really it does not.
Dunn’s written admission of guilt said banks lost more than $23 million in the check-kiting scheme.
The case was investigated by the Amarillo FBI office. Reagor Dykes filed for bankruptcy in August 2018 after Ford Motor Company accused Reagor Dykes of fraud and default. The bankruptcy case continued as of Thursday.
Dunn actually signed the guilty plea agreement on November 21, however, it was not available in court records at that time. On Wednesday, the deal was formally presented in court and a magistrate heard her guilty plea in court.
A judge on Wednesday set conditions of release so she can stay out of jail while the case is pending. Dunn will be sentenced at a later date to no more than five years under the terms of the plea deal. She will also be held responsible for restitution.
Reagor Dykes employees who have accepted criminal plea bargains so far include:
- Ashley Nicole Dunn
- Brad William Fansler
- Paige Anna Johnston
- Sheila Evans Miller
- Pepper Laray Rickman
- Shane Andrew Smith
- Diana Herrera Urias
- Lindsay Clare Williams
- Sherri Lynn Wood