LUBBOCK, Texas — Lindsay Clare Williams and Paige Anna Johnston on Monday accepted plea agreements related to the collapse of the Reagor Dykes companies.
Both face up to five years in federal prison as part of their deals. Johnston agrees she is liable for more than $27 million of restitution. Williams agrees that she is responsible for more than $23 million in restitution.
Williams admitted to conspiracy to commit bank fraud. Johnston admitted to conspiracy to commit wire fraud.
Williams admitted in court records that she was hired in 2013 by Reagor Dykes as an accounting manager. Johnston was hired 2015 as an office manager for the Reagor Dykes location in Floydada.
In February of 2018, the FBI office in Amarillo began to investigate her boss, Shane Smith and others, for allegations of check kiting.
Check kiting is a form of bank fraud. The basic details of the case against Williams are roughly the same as the cases filed against Smith, Diana Herrera Urias, and Sheila Evans Miller.
The Johnston case was set out differently. It focused on floor plan fraud. A floor plan is a certain type of loan for automotive dealerships. Court records said Johnston helped to falsify automotive sales records so that it would look like Reagor Dykes owed Ford Motor Credit Company less than it actually did.
Court records said in July 2018, roughly $40 million of vehicles could not be accounted for in the floor plan.
Ford sued Reagor Dykes on July 31, 2018. On August 1, Reagor Dykes filed for bankruptcy.
There are now five Reagor Dykes employees who have pleaded guilty on federal charges in Amarillo. All are awaiting final sentencing.
Court records have still not said why the FBI took the case in Amarillo rather than Lubbock where Reagor Dykes was based.
CLICK HERE to read the factual resume in the Johnston case, which provides details that were not in the other cases.