Rick Dykes denied wrongdoing in a written court record filed Thursday in federal district court. Dykes is the co-founder of the Reagor Dykes Auto Group along with Bart Reagor.
Dykes accused his own former employee of wrongdoing in the court record his attorney filed.
On July 31, Ford Motor Credit Company accused Reagor Dykes of defaulting on roughly $40 million of debt. Ford later accused Reagor Dykes of fraud. The total debt was roughly $116 million.
One day later, a list of Reagor Dykes companies filed for bankruptcy. Both the federal court lawsuit and the bankruptcy case are still ongoing.
Dykes’ response to Ford’s lawsuit said the former employee worked for Reagor Dykes for 11 years and handled all the financial reporting. The former employee was the Chief Financial Officer until he was fired.
According to Dykes, things began to unravel when Ford found irregularities and did an emergency on-site review in July.
The former employee has not been charged with a crime. The FBI has not confirmed or denied that there is an investigation regarding the former employee or anyone else at Reagor Dykes.
A phone message was left for the former employee on his cell phone on Wednesday. If they choose to comment, an update will be provided.
(From everythinglubbock.com)