11 people plead guilty in Reagor-Dykes floor plan fraud scheme

11 people plead guilty in Reagor-Dykes floor plan fraud scheme
(Source: KCBD)

LUBBOCK, Texas (KCBD) - Eleven people have pleaded guilty for their role in the Reagor-Dykes “fraud scheme.” The investigation reveals more than $40 million worth of “collateralized inventory that RDAG was unable to produce for inspection,” according to court documents.

Elaina Marie Cabral, a 30-year-old Reagor-Dykes office manager who worked at RDAG’s Toyota store in Plainview, and Whitney Erin Maldonado, a 44-year-old Reagor-Dykes office manager who worked at RDAG’s Mitsubishi store in Lubbock, pleaded guilty to conspiracy to commit wire fraud before Magistrate Judge Lee Ann Reno in Amarillo last week.

According to plea papers, employees routinely dug through records for vehicle identification numbers (VIN) of cars Reagor-Dykes had already sold, then submitted new loan applications to Ford Motor Credit Company using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale, many have admitted. After acquiring the new floor plan funding, instead of re-buying the car, Reagor-Dykes used the ensuing loan to cover other expenses, according to the U.S. Attorney’s Office and the FBI.

The investigation revealed at least 19 bank accounts from several banks, involving nine different RDAG entities, had been used to kite checks, according to federal court documents.

Admitted co-conspirators also include Reagor-Dykes Chief Financial Officer Shane Andrew Smith.

  • Brad William Fansler pleaded guilty to conspiracy to commit wire fraud on Monday in an Amarillo federal court. He, like many of the others who have pleaded guilty, communicated through email discussing the fake flooring. He faces up to five years and a fine not to exceed $250,000 and possible restitution of more than $27 million. His sentencing is scheduled for March 12, 2020 in Amarillo.
  • Pepper Laray Rickman, 47, and Sherri Lynn Wood, 53, pleaded guilty to conspiracy to commit wire fraud before Magistrate Jude Lee Ann Reno in Amarillo in late October. They each face up to five years in federal prison and may be required to pay at least $27 million in restitution. Their sentencing has been scheduled for March 5, 2020 in Amarillo.
  • Shane Smith’s sentencing was rescheduled for Jan. 7 in Amarillo. He faces up to 20 years in prison, a fine not to exceed $250,000 and possible restitution of more than $50 million.
  • Sheila Miller’s sentencing has been set for Jan. 23 in Amarillo. She faces up to five years and a fine not to exceed $250,000 and possible restitution of more than $23 million.
  • Diana Urias’ sentencing has been set for Jan. 23 in Amarillo. She faces up to five years and a fine not to exceed $250,000 and possible restitution of more than $23 million.
  • Paige Johnston’s sentencing has been set for Feb. 19, 2020 in Amarillo. She faces up to five years and a fine not to exceed $250,000 and possible restitution of more than $27 million.
  • Lindsay Williams’ sentencing has been set for Feb. 19, 2020 in Amarillo. She faces up to five years in prison and a fine not to exceed $250,000, and possible restitution of more than $23 million.
  • Ashley Dunn faces up to five years in prison, a fine not to exceed $250,000 and possible restitution of more than $23 million. Her sentencing has been set for April 7, 2020 in Amarillo.
  • Whitney Erin Maldonado faces up to five years in prison, a fine not to exceed $250,000 and possible restitution of at least $27 million. Her sentencing has been set for April 14, 2020 in Amarillo.
  • Elaina Marie Cabral faces up to five years in prison, a fine not to exceed $250,000 and possible restitution of at least $27 million. Her sentencing has been set for April 14, 2020 in Amarillo.

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