Two years after Reagor Dykes collapsed, where do things stand?

Local News

LUBBOCK, Texas — Friday marks two years since Ford Motor Credit Company filed a lawsuit in Lubbock against Reagor Dykes with accusations of floor plan fraud. A floor plan is a type of loan for auto dealerships. Court records said it “may be” the largest fraud of its kind in U.S. History.

Ford filed its lawsuit electronically on the evening of July 31, 2018. The very next day, Reagor Dykes filed for bankruptcy. In addition to claims made by Ford, several local banks accused Reagor Dykes of bank fraud – more specifically a form of fraud called check kiting.

Kiting is a way of trading checks between banks to make it look like an account has money when actually it does not.

On July 10, almost two years after the case started, a judge accepted a Chapter 11 plan. While normally Chapter 11 is a reorganizational form of bankruptcy, previous plans were rejected, and the approved plan calls for liquidation.

In the time since then, the sale of Reagor Dykes’ Lamesa Dealership was approved. The purchaser is Premier Auto Group which has a location in Lubbock. Premier was ordered to pay $1 million to the bankruptcy estate but it was not clear from court records if that’s the total purchase price.

The Reagor Dykes bankruptcy estate on Friday filed claims against:

  • Broadway Festivals for $25,000.00
  • American Tire Distributors for $25,532.28
  • Jerry “Mike” Burkett for $25,598.42
  • Lone Star Brokering for $33,225.00
  • Wild West Trailers for $33,900.00
  • Fortress Resources LLC for $68,729.45 CDK Global for $83,631.05
  • Lubbock Auto Spa for $65,705.00
  • AER Manufacturing for $81,455.74 Forman’s Pick-up Pals for $142,342.00
  • Sawco Truck Equipment for $179,236.88
  • Dealers Truck Equipment for $242,805.56

None of those named in the claims on Friday had responded yet in court records.

The liquidation plan made provisions for customers who had been denied proper title to their vehicles when the process was interrupted by bankruptcy (and a long list of bounced checks by Reagor Dykes).

EverythingLubbock.com reached out to the Chief Restructuring Officer for the company by phone and by email on Thursday to request an update on tax, title and license. Marcus Helt did not respond as of the time of this report.


Related Story: Reagor Dykes liquidation plan approved, bankruptcy case is (kind of) over


Back in June, the Reagor Dykes bankruptcy estate filed a $315 million claim against Ford. In essence the estate claimed that Ford allowed its employees and employees of Reagor Dykes to engage in fraud. The idea is to hold Ford responsible for letting it happen.

Ford has until August 26 to file a written response.

Fourteen former employees of Reagor Dykes are known to have pleaded guilty to federal crimes related to the collapse of the company. They include former Chief Financial Officer Shane Smith.

In 2019, Rick Dykes agreed to pay Ford $58.7 million. In late 2019, a judgement was ordered against Bart Reagor for a little less than $54 million.

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