LUBBOCK, Texas (KAMR/KCIT) — New filings in bankruptcy court in Lubbock implicate a bank in the Reagor-Dykes check-kiting scheme.
According to documents filed today, investigators said Vista Bank, “knowingly facilitated and participated in the fraudulent schemes of Debtor’s former Chief Financial Officer Shane Smith.”
An amended complaint filed on behalf of Reagor-Dykes debtors said Vista Bank President John Steinmetz enriched himself through kickbacks.
Smith is facing up to 20-years in federal prison after he pleaded guilty to Conspiracy to Commit Wire Fraud.
The Reagor-Dykes’ floor plan scheme and check-kiting scheme came to light after the dealership was sued in July 2018 by Ford Motor Credit Company.
That lawsuit led to a number of Reagor-Dykes dealerships filing for bankruptcy, and 11 Reagor-Dykes employees have reached plea deals for their part of the wire fraud conspiracy.
The debtors are asking to file an amended complaint including the new information against Vista Bank.