LUBBOCK, Texas — Newly filed court records accused Shane Smith of taking $527,076.81 he was not entitled to have.

Smith was the Chief Financial Officer of Lubbock-based Reagor Dykes until he was fired in the summer of 2018. In June 2019, Smith took a federal plea bargain for conspiracy to commit wire fraud. The case is still pending, and Smith will be sentenced at a later date — up to 20 years in federal prison.

In addition, the new court documents make another claim of misconduct against Smith. The newest documents described an insurance policy Reagor Dykes had with Travelers Insurance. Certain crimes were covered by the policy.

The Reagor Dykes bankruptcy estate laid out details of a settlement with Travelers including the newest accusations against Smith.

“Mr. Smith’s compensation was a base salary plus entitlement to an 8% commission on the net profits…,” court records said. “Mr. Smith had recorded multiple bogus accounting entries over a significant period of time to improve the reported profits of the company.”

“That bogus accounting had the effect of falsely inflating commission due to Mr. Smith, and thus the parties have agreed upon the gross amount of $527,076.81 to resolve [the RD bankruptcy estate’s] claim on the Crime Policy.”

“Mr. Smith did not steal vehicles or computers,” the new filing said on Monday. “Here, Mr. Smith ‘cooked the books.’ Mr. Smith knowingly and willingly recorded bogus accounting entries on the official accounts of the company.”

As one example, the documents filed in court said for 2017, Smith altered records from a $3.5 million loss to a $7.8 million profit.

The insurance policy was $500,000 plus Travelers agreed to cover some out of pocket expenses for a total of $504,452.50.

Reagor-Dykes operated eight dealerships across 13 locations. Ford accused Reagor Dykes of fraud and default in the days before bankruptcy was filed. Several local banks accused Reagor Dykes of a specific form of bank fraud called check kiting.

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