Bankruptcy Judge approves settlement between General Motors and Reagor Dykes Auto Group

Settlement approved between RDAG, GM

LUBBOCK, Texas (KCBD) - Documents filed in Federal Court Thursday granted a settlement payment from General Motors, LLC, to Reagor Dykes Floydada for $84,684.14. A settlement previously agreed upon by both parties.

Court documents from April of 2019 showed GM owed RDAG more than $527,000 in “dealer incentives” after of GM terminated its contract with the Floydada dealership in 2018. GM claimed after audits were performed and “off-sets,” including auto inventory, were applied, both parties agreed RDAG Floydada was only owed $84,684.14.

Thursday’s ruling confirmed the agreement and ordered GM to pay that amount to RDAG within 30 days. According to the order, RDAG agreed to “forever discharge General Motors, LLC, from any and all claims and causes of action…” related to the bankruptcy case. The Lubbock-based auto-giant filed for bankruptcy in August 2018 amid fraud and conspiracy allegations.

In June 2019, former RDAG CFO Shane smith pleaded guilty for conspiracy to commit fraud. Smith has yet to be sentenced. He faces up to 20 years in federal prison. Since then, 14 former RDAG employees have pleaded guilty to various criminal charges stemming from the investigation. The criminal cases are being prosecuted in Amarillo where RDAG operated a dealership.

  • Brad William Fansler pleaded guilty to conspiracy to commit wire fraud 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.
  • Pepper Laray Rickman pleaded guilty to conspiracy to commit wire fraud before Magistrate Jude Lee Ann Reno in Amarillo in late October. She faces up to five years in federal prison and may be required to pay at least $27 million in restitution.
  • Sherri Lynn Wood pleaded guilty to conspiracy to commit wire fraud before Magistrate Jude Lee Ann Reno in Amarillo in late October 2019. She faces up to five years in federal prison and may be required to pay at least $27 million in restitution.
  • Shane Smith faces up to 20 years in prison, a fine not to exceed $250,000 and possible restitution of more than $50 million.
  • Sheila Miller faces up to five years and a fine not to exceed $250,000 and possible restitution of more than $23 million.
  • Diana Urias faces up to five years and a fine not to exceed $250,000 and possible restitution of more than $23 million.
  • Paige Johnston faces up to five years and a fine not to exceed $250,000 and possible restitution of more than $27 million.
  • Lindsay Williams 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.
  • 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.
  • 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.
  • Mistry Canady faces up to five years in prison, and a $250,000 fine, as well as restitution to the community.
  • Wesley Todd Neel pleaded guilty in March of this year to conspiracy to commit wire fraud. He faces up to five years in prison, a fine not to exceed $250,000 and possible restitution of at least $27 million.
  • Andrea Kate Phillips faces up to three years in prison, a fine not to exceed $250,000 and up to a year of supervised release. An amount of restitution was not listed in the plea agreement, which is different than the others who have pleaded guilty.

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