AMARILLO, Texas — The defense for Bart Reagor announced in court Wednesday morning that Rick Dykes will not be called to the stand for Mr. Reagor. Reagor and Dykes were co-owners of the Reagor Dykes Auto Group which collapsed into bankruptcy in August 2018.
Fifteen former employees were charged with federal crimes. Dykes is not one of them. Reagor was indicted for bank fraud and making a false statement to a bank. His trial began Monday with jury selection.
Reagor admits he took $1.7 million from Reagor Dykes in 2017. It was right after IBC Bank refinanced with RDAG and increased its loan amount by $10 million.
Reagor, via his attorney statements, said there was nothing wrong with it. Prosecutors said the loan was for working capital in the company, not for personal use by the owners.
Prosecutors called their last witness Wednesday. Once that was finished, the defense asked the judge to throw out the case on the basis that the evidence was insufficient. The defense said the government “failed to prove the case.”
In response, the prosecution told the judge that omission of an important fact can also be a false statement.
The judge ruled that the case is sufficient to go forward.
Former FBI Special Agent John Whitworth testified and said Reagor spent the $1.7 million on a number of personal things, including a $50,000 gift to his son.
The trial in Amarillo is expected to last through Friday. The case was prosecuted in Amarillo even though RDAG was based in Lubbock.