LUBBOCK, Texas — The defense for Bart Reagor raised a number of written objections in federal court Tuesday. In April, Reagor was indicted for one count of bank fraud and one count of making a false statement to a bank. The trial date was set for October 12.
Reagor was co-owner of the Reagor Dykes Auto Group which collapsed into bankruptcy amid accusations of fraud and default. Fifteen former employees were charged with federal crimes in addition to Reagor.
More specifically, federal prosecutors said Reagor-Dykes took out a loan from IBC Bank and then diverted more than $1.7 million of loan money to his personal bank account.
Among several documents filed Tuesday, Reagor’s attorney filed a trial brief (a summary) of the case.
“In reality, Mr. Reagor’s conduct was wholly permissible. Mr. Reagor zealously denies he engaged in any criminal conduct,” the trial brief said.
“Mr. Reagor’s business partner, Rick Dykes, engaged in the same conduct the government now alleges makes Mr. Reagor guilty of three federal felonies,” the trial brief said. “Again, in reality, Mr. Reagor never committed a crime.”
The trial brief said Reagor and Dykes both put their own personal money into the company in 2017 after a “disappointing” audit. Later they made the IBC loan.
Reagor then reimbursed himself for the money he put into the company, according to the brief.
“This loan agreement allowed for precisely the kinds of distributions taken by Mr. Reagor, as well as Mr. Dykes. Indeed, nothing in the loan agreement required them to alert the IBC of these distributions. Nothing required them to ask permission to pay themselves back for their previous capital contributions.”
- Read a pdf version: USA vs Bart Reagor Defense Trial Brief
- Read a pdf version: USA vs Bart Reagor Prosecution Trial Brief
Reagor’s trial brief was filed by attorney Dan Cogdell. On Tuesday, former Lubbock County District Attorney Matt Powell, along with well-known Lubbock attorney Tray Payne requested permission to enter the case as co-counsel for Reagor.
Reagor also filed an objection to certain exhibits at trial, among them “evidence of Reagor’s net worth.” Reagor had already filed a separate objection saying even if he bragged about his net worth during office meetings, that does prove or disprove anything in the indictment.
Also on Tuesday, prosecutors filed an objection of their own. They want to prevent Reagor from calling Marcus Helt who is an attorney for Reagor Dykes during the bankruptcy case.
Federal prosecutors wrote, “Reagor wants Helt to testify that he has reviewed numerous documents in the bankruptcy case and, in his opinion, Reagor is not guilty of fraud.”
But the prosecution told the judge that Helt did not get to see all of the same evidence as the FBI and therefore it would be confusing to the jury and unfair.