LUBBOCK, Texas — Bart Reagor’s defense on Thursday asked a judge for permission to file additional arguments in his bid to toss out his felony conviction.
Reagor was co-owner of the Lubbock-based Reagor Dykes Auto Group when it collapsed into bankruptcy amid accusations of fraud and default. Former Chief Financial Officer Shane Smith and more than a dozen other former employees admitted to committing federal crimes. Reagor always maintained his innocence.
The case was prosecuted in Amarillo, and in October, a jury found Reagor not guilty of bank fraud but guilty of a false statement. Reagor always admitted taking $1.7 million in 2017 from the company after IBC Bank approved a $10 million company loan. But Reagor argues there was nothing immoral or illegal about it.
On December 13, Reagor asked a judge to throw out the jury verdict which found him guilty of making a false statement to a bank. Reagor’s attorney, Dan Cogdell, argued that Reagor had to knowingly do something wrong – a mere mistake is not enough to support a conviction.
Prosecutors on Monday filed their response. They claim an email from Reagor is the strongest evidence that he did know.
The email said: “How we are going to handle this capital is 100,000,000 percent confidential between us and is not anyone else’s business. Nobody’s. No bankers or anyone else. Our business. Game on.”
Reagor’s Thursday request seeks permission to directly address the items prosecutors presented on Monday.
Cogdell, on Reagor’s behalf, wrote the email was not evidence that Reagor knew.
“If anything, the email shows that he thought these were encompassed in his understanding of the term because the title of his email was ‘HANDLING CAPITAL,’ thus showing that he thought such distributions were part of ‘working capital.’”
- Click here to read the first of Reagor’s most recent filings.
- Click here to read the second of Reagor’s most recent filings.
The statutory maximum is 30 years for making a false statement to a bank. Sentencing is scheduled for February 24, 2022.