On Tuesday morning, a federal judge denied the motion by former Reagor Dykes CFO Shane Smith to move a lawsuit from Lubbock to Dallas.
In September, First Bank & Trust (FB&T) sued Reagor Dykes, FirstCapital Bank and a list of people that included Smith.
FB&T made a long list of allegations; among them was the allegation that FirstCapital profited from a check kiting scheme by Reagor Dykes. FirstCapital denied participating or profiting on check kiting.
Check kiting is a way of making a checking account look like it has money when in fact it does not. It is considered a form of fraud.
Previously, Smith raised several defenses in court records including the idea that FB&T “ratified the actions of Smith.”
On August 1, a list of Reagor Dykes companies filed for bankruptcy. Ford Motor Credit Company accused Reagor Dykes of fraud and default.
More recently, Smith claimed in court records that the FB&T lawsuit should be moved to another venue or delayed. Smith suggested moving it to Dallas.
An attorney for Smith wrote in court records that Lubbock area residents have already likely formed an opinion of the lawsuit and other related lawsuits.
An attorney for Smith also wrote, “Smith and, upon information and belief, other defendants, including [Reagor Auto Mall] and its officers, have been, or are likely to become, involved in criminal investigations arising from the alleged events made the basis of this suit.”
If Smith is required to testify in a civil lawsuit, it could be used against him a criminal case. However, so far, court records do not reflect any criminal charges against Smith or anyone else.
The judge’s order on Tuesday morning said:
On this date, the Court considered Defendant Shane Smith’s Motion to Stay or Abate, filed November 21, 2018, along with Defendant Shane Smith’s Motion to Transfer Venue and Brief in Support, also filed November 21, 2018.
After due consideration, the Court finds that the Motions should be DENIED.
Dated this 27th day of November, 2018.