LUBBOCK, Texas — FirstCapital Bank on Thursday responded to a complaint filed by Reagor Dykes on Wednesday morning bankruptcy records.

Attorneys representing Reagor Dykes claimed that FirstCapital knew that former Chief Financial Officer Shane Smith was engaged in fraud and participated with him. FirstCapital denies it.

Smith and a total of 12 former Reagor Dykes employees admitted to committing federal crimes.

“FirstCapital participated in Smith’s schemes knowing that he was using his scheme to defraud the Ford Motor Credit Company and other floorplan lenders,” the complaint said. “FirstCapital knew the nature and extent of Shane’s fraudulent schemes. Far from stopping them, they took active measures to help Smith carry out his schemes.”

As of December 2018, FirstCapital listed an aggregate $2,916,169.99 in the bankruptcy claims record against Reagor Dykes.

After Reagor Dykes filed for bankruptcy in August 2018, the company was placed under the control of a Chief Restructuring Officer.

In the current complaint, Reagor Dykes claims that FirstCapital refuses to hand over post-bankruptcy deposits of Reagor Dykes. The complaint seeks to get that money back – saying it cannot be used to offset bounced checks with FirstCapital.

A similar complaint was filed by Reagor Dykes against Vista Bank. Vista announced on Wednesday that it settled the claim and agreed to hand over $7.5 million even though Reagor Dykes bounced more than $13 million of checks with Vista.

The following is the FirstCapital statement.

The lawsuit filed by the Reagor Dykes bankruptcy estate has no merit and is simply an effort to shakedown FirstCapital for a fraud perpetrated by Reagor Dykes and its 12 and counting employees who have already pled guilty to the crimes.

No one at FirstCapital was aware of the fraud underway at Reagor Dykes until learning so in connection with the Reagor Dykes bankruptcy filings. FirstCapital is a victim of Reagor Dykes’ massive fraudulent scheme and nothing more.

Now, the bankrupt shell of Reagor Dykes is suing FirstCapital for failing to tell Reagor Dykes that it was defrauding FirstCapital and many others. Only in a land where up is down and down is up does that make sense.