Reagor-Dykes Criminal Charges Growing

Reagor-Dykes Criminal Charges Growing
(Source: Jason Norton KCBD)

LUBBOCK, Texas (KCBD) - Another former employee of Reagor-Dykes Auto Group pleaded guilty this week in the growing criminal case of the now bankrupt auto giant.

Mistry Canady, an office manager for Reagor-Dykes Motors LP at Spike Dykes Ford in Lamesa, pleaded guilty to charges of Conspiracy to Commit Wire Fraud, bringing the list of employees charged in the criminal case to 12.

Documents filed last month show Canady, an office manager for Reagor-Dykes Motors LP at Spike Dykes Ford in Lamesa, pleaded guilty to charges that she “and her co-conspirators had provided false information to FMCC (Ford Motor Credit Company), received additional financing from FMCC on behalf of RDAG or delayed paying amounts due to FMCC.”

Similar to plea papers from other Reagor-Dykes employees, documents describe the “fraudulent floor plan fraud scheme.” Documents show employees routinely dug through records for vehicle identification numbers of cars the dealership already sold.

Then they submitted new loan applications to Ford Motor Credit Company using the old VINs – falsely showing the company was seeking a loan in order to repurchase the vehicle for resale, many have admitted. After getting new floor plan funding Reagor-Dykes used the ensuing loan to cover other expenses, instead of re-buying the car.

Ford Motor Credit previously extended floor plan loan funds to Reagor-Dykes to purchase vehicles, but documents say Canady and the RDAG accounting staff “routinely and intentionally” failed to make these payments back to Ford Motor Credit, in what they referred to as “selling vehicles out of trust.”

The documents also described the way RDAG managers and staff would prepare for what were supposed to be surprise audits from Ford by creating false paperwork on vehicles sold out of trust. This made it appear as though the vehicles were recently sold.

When Ford Motor Credit auditors got to to dealerships, RDAG controllers and office managers would give false paperwork in order to pass the audit.

Canady faces up to five years in prison, and a $250,000 fine, as well as restitution to the community.

11 other former RDAG employees have also pleaded guilty to charges, including Reagor-Dykes Chief Financial Officer Shane Andrew Smith. Smith’s sentencing date was originally rescheduled for January 7, but after no action was taken, court officials were contacted in Amarillo on Wednesday, and were said “no date has been set.”

Others include:

  • 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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