LUBBOCK, Texas — Vista Bank and the Chief Restructuring Officer of Reagor Dykes settled a dispute Wednesday morning with Vista agreeing to pay $7.5 million.
These were Reagor Dykes funds that Vista held but they were disputed in the bankruptcy process.
In previous court records Vista wanted permission to keep Reagor Dykes’ money to offset more than $13.5 million of bounced checks. Vista not only agreed to give up the $7.5 million, but also agreed to withdraw remaining claims for bounced checks and other debts.
In January, Reagor Dykes filed a particularly nasty set of personal allegations in court records — claiming that Vista Bank’s President, John Steinmetz, helped Reagor Dykes commit fraud. Vista denied the allegations when they first appeared in court records.
Now, as part of the settlement, each side agreed not to disparage the other.
Former Chief Financial Officer Shane Smith and a list of other former employees admitted to felony violations of federal law ranging from bank fraud to floor plan fraud.
Additionally, Reagor Dykes on Tuesday filed a complaint Wednesday morning against FirstCapital Bank.
In the newest complaint, Reagor Dykes said, “FirstCapital participated in Smith’s schemes knowing that he was using his scheme to defraud the Ford Motor Credit Company and other floorplan lenders”
On Wednesday morning, a court hearing was in progress to debate the issue of possibly converting the bankruptcy from Chapter 11 (restructuring) to Chapter 7 (liquidation). The issue was still up for contention at the time of this article.
Back in December, the office of U.S. Bankruptcy Trustee asked that the case be converted.
Vista Bank’s attorney, Fernando Bustos, issued the following statement:
“Vista Bank is pleased to have this dispute behind them after reaching a mutual resolution. While there was no wrongdoing by Vista Bank, my client chose to eliminate the opportunity cost associated with prolonged litigation by resolving several no-fault claims. In conclusion, today’s resolution allows Vista Bank to do what they do best, focus on their clients and the communities they serve.”