The Reagor-Dykes Saga Continues With Former CFO in the Spotlight
Rick Dykes, one of the co-founders of the Reagor Dykes Auto Group, has denied any involvement in alleged fraud. Dykes has instead accused the company’s former Chief Financial Officer, Shane Smith, of submitting false financial documents to the Ford Motor Credit Company.
On July 31st, Ford Motor Credit filed a lawsuit against Reagor-Dykes after an on-site review uncovered potential fraud of up to $40 million dollars. According to detailed court documents filed yesterday, Dykes said that Smith personally admitted to submitting false documents as the company was preparing to file for bankruptcy.
Dykes said he immediately fired Smith and has reported his admission to the U.S. Attorney’s Office. Dykes also claimed that the U.S. Attorney’s Office is conducting an investigation into Smith, but KAMC News reports that so far Smith has not yet been charged with any crime and that they cannot confirm the presence of an investigation.
A court document filed by Rick Dykes’ attorney characterizes the Ford Motor Credit lawsuit against the Reagor-Dykes Auto Group as "...not that simple." The document goes on to say that "...there simply has not been adequate time for Defendants [Reagor-Dykes] and their respective counsel to fully evaluate legitimate and reasonable questions regarding Ford Credit’s actions relating to the facts alleged in the Amended Complaint..."
To conclude the court document, Dykes requested that the case on behalf of Ford Motor Credit against Reagor-Dykes be heard by a jury. Time will tell if a judge will abide by Dyke’s demand.