LUBBOCK, Texas — Bart Reagor filed a motion in federal court to overturn his October 15 conviction for false statement to a bank. Reagor was co-owner of the Reagor Dykes Auto Group prior to its collapse into bankruptcy amid accusations of fraud and default.
A grand jury in Amarillo indicted the Lubbock businessman in April. A jury trial cleared Reagor of bank fraud but found him guilty of making false statements to a bank. More specifically, Reagor was accused of taking $1.7 million of a $10 million bank loan for personal use.
Reagor freely admitted taking the money, but he claimed in court records there was nothing wrong or illegal about it.
Prosecutors argued otherwise. In court, they presented an email Reagor wrote, in which he 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.”
In this latest request to toss out the conviction, Reagor’s defense said the crime requires intent. It cannot be a simple mistake. The government must prove, the defense said, that Reagor acted “with knowledge.” Unless he knew he could not use a working-capital loan to pay himself, then by definition he did not commit a crime.
The defense claimed this case never should have been taken to the jury but instead tossed out on the rules of procedure.
Prosecutors have not yet filed their side of the story, and a federal judge has not yet ruled on the request. Reagor remains free until sentencing, which was scheduled for February 24. The maximum penalty for false statements to a bank is 30 years.
Click Here to read the motion.
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