Bart Reagor’s wife sues FirstCapital Bank, seeking up to $22.3 million
LUBBOCK, Texas (KCBD) - Annette Reagor, wife of Bart Reagor, filed a lawsuit on April 22 against FirstCapital Bank seeking up to $22.3 million in damages.
The suit claims the bank defrauded the Reagors and that FirstCapital knew about the check-kiting scheme after “the RDAG dealerships (under Smith’s direction) were making deposits into their checking accounts” that were regularly overdrawn.
Shane Smith, former Chief Financial Officer of the auto-group, was sentenced to seven years in prison in Jan. 2022. Smith pleaded guilty to conspiracy to commit wire fraud in 2019.
The suit claims FirstCapital caused the Reagors substantial financial damage by charging the auto-group “sky-rocketing” overdraft fees. It states if FirstCapital had not honored the checks and collapsed the scheme, “Bart Reagor and his family would have been spared the ensuing catastrophe they were soon to endure.”
The suit accuses the bank of participating in the scheme to “avoid the impact to FirstCapital’s financial condition that would have resulted from a cascade of defaults.”
The lawsuit specifically states the Reagors pledged $2.3 million in assets to FirstCapital back in August 2018 for financing and asks for at least that much in return in damages, claiming the promise of refinancing was “knowingly false and merely a ‘money-grab’”.
Reagor was found guilty on one count of making a false statement to a bank and sentenced to 14 years in prison. He was recently denied a request to avoid prison pending his sentencing appeal to treat his progressive Parkinson’s disease.
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