LUBBOCK, Texas — The attorney for Vista Bank on Wednesday evening issued a press statement accusing Reagor-Dykes and its Chief Restructuring Officer of attempted extortion.
The Chief Restructuring Officer was appointed with the approval of a bankruptcy court in an ongoing bankruptcy case. Vista filed a request for a declaratory judgement against Reagor-Dykes and the CRO on Wednesday.
UPDATED STORY LINK: Andrew R. Seger replies to allegations of attempted extortion made by Vista Bank
In this case the declaratory judgement would function in much the same way as a lawsuit. Vista wants a federal judge to rule that Vista cannot be held responsible for more than $5 million of expenses of the CRO in the bankruptcy case.
“Vista Bank has no liability for the criminal actions of Reagor-Dykes and its employees,” a statement from Vista’s attorney Fernando Bustos said.
“The CRO’s claims are akin to a robber breaking into a home, getting arrested, and then suing the homeowner afterward.”
Reagor-Dykes filed for bankruptcy in August 2018 after Ford made allegations of fraud. At least three local banks later accused Reagor-Dykes of a specific form of bank fraud called check kiting.
So far, eight employees of Reagor-Dykes pleaded guilty in federal court.
EverythingLubbock.com reached out to an attorney for the CRO but was unable to reach them Wednesday night.
The full statement from Bustos is copied below:
After two failed attempts at reorganizing under chapter 11 of the bankruptcy code, the Reagor-Dykes bankruptcy chief restructuring officer (CRO) attempted to extort money from creditors, including Vista Bank, to pay for over $5,000,000 in unpaid administrative expenses that the CRO and his attorneys have racked up in the bankruptcy. The Reagor-Dykes entities are criminal enterprises, as proved by the eight (8) guilty pleas in federal court, including their former chief financial officer, Shane Smith.
Refusing to be extorted, Vista Bank filed a declaratory judgment action in Lubbock bankruptcy court to obtain a judgment that Vista Bank has no liability for the criminal actions of Reagor-Dykes and its employees. Local attorney Andrew Seger has agreed to represent the Reagor-Dykes entities in bankruptcy and will have to defend the criminal conduct of Shane Smith and the other former employees of Reagor-Dykes. The CRO’s claims are akin to a robber breaking into a home, getting arrested, and then suing the homeowner afterward. Vista Bank looks forward to justice and defeating Reagor-Dykes’ claims in court.