Former Reagor-Dykes CFO requests change of venue in lawsuit
Former Reagor-Dykes chief financial officer Shane Smith wants a change of venue for First Bank & Trust's lawsuit against him. And his filing notes criminal investigations may be underway tied to this case.
Former Reagor-Dykes chief financial officer Shane Smith wants a change of venue for First Bank & Trust's lawsuit against him.
A filing in U.S. Bankruptcy Court states trial of this suit in the Lubbock Division would "deprive Smith of his inherent right of an impartial jury".
First Bank & Trust filed suit against Reagor-Dykes and several other defendants, claiming the Auto Group has defaulted on loans, conducted floor plan financing fraud and perpetrated a check-kiting scheme. First Bank & Trust seeks monetary relief of more than $1 million.
Wednesday's filing continues, "[a]lthough Smith has great faith in the Lubbock community to uphold its civic duties, the improbability of securing a jury panel that has not been prejudiced or impacted, directly or indirectly, by the alleged actions of Reagor Dykes Auto Group, puts Smith’s Constitutional rights in jeopardy."
Smith's attorney claims a significant percentage of Lubbock-area residents have been directly or indirectly notified and/or impacted by the bankruptcy and litigation. It also notes hundreds of consumers and their families have been affected by unpaid trade-ins, delayed titles and crediting issues. Many citizens, businesses and charities have been impacted by the loss of capital that was injected into the community, both directly and indirectly by the Reagor Dykes Auto Group through donations, charitable work, and revenues from outside sources, according to the filing.
The filing cites dozens of news stories from local media outlets. "As a result, a significant percentage of the Lubbock area residents have likely already formed an opinion about the allegations contained in this lawsuit and in other related lawsuits. Appendix 1-75. As such, Smith requests that this Court transfer this case to the Dallas Division of the Northern District of Texas, or another District in Texas, for further proceeding."
First Bank & Trust filed this lawsuit against Reagor Auto Mall d/b/a Reagor-Dykes of Levelland and d/b/a Reagor Dykes Imports, First Capital Bank, Bart Reagor, Rick Dykes, Smith, former Reagor-Dykes controller Sheila Miller, First Capital Bank CEO Brad Burgess and First Capital Bank Chairman Kenneth Burgess.
In another lawsuit filed solely against Smith, Vista Bank and Smith reached a settlement. Vista had claimed Smith defaulted on a $200,000 personal loan.
A filing from Vista stated both sides reached an agreement out of court.
Potential criminal investigations
Smith's filing also notes:
"Since the date of the alleged incidents, Defendant Smith and, upon information and belief, other defendants, including [Reagor Auto Mall] and its officers, have been, or are likely to become, involved in criminal investigations arising from the alleged events made the basis of this suit.1 The publicized events surrounding RAM has generated civil lawsuits and, upon information and belief, criminal investigations, and has been the subject of multiple news stories and reports that are or may be prejudicial to Defendant Smith."
In a separate filing Wednesday, Smith asks the court to allow potential criminal proceedings to move forward and put this civil suit on hold.
"Since the date of the alleged incidents, Defendant Smith and, upon information and belief, other defendants, including RAM and its officers, have been, or may become involved in criminal investigations arising from the alleged events made the basis of this suit."
The filing states responding in this civil case could jeopardize his Fifth Amendment privilege against self-incrimination in any potential criminal case. Conversely, invoking the Fifth in a potential criminal case could harm his case in this suit, as spelled out below:
"If Smith responds to discovery or further issues in this proceeding, he would be jeopardizing his Fifth Amendment privilege against self-incrimination by creating the possibility that his answers will aid a possible government prosecution of him. On the other hand, if Smith invokes his Fifth Amendment privilege, then he risks severe prejudice in this proceeding that could amount to a forfeiture of his due process rights to defend himself. Accordingly, Smith seeks to abate or stay this proceeding until any possible criminal investigations, and any subsequent proceedings, are concluded."
NOV. 20: Toyota, GM file objections in Reagor-Dykes bid process
NOV. 14: State may extend titles for some Reagor-Dykes customers
NOV. 2: Five more Reagor-Dykes entities petition for bankruptcy
OCT. 29: Reagor-Dykes TT&L, trade-in issues remain unresolved; progress reported with some lenders
OCT. 29: Bart Reagor, Reagor Auto Mall claim First Bank & Trust party at fault
OCT. 29: Vista Bank asks to recoup funds in Reagor-Dykes accounts
OCT. 18: No resolution yet on Reagor-Dykes customers' unpaid TT&L, trade-in liens
OCT. 17: More lenders object to Reagor-Dykes' request for TT&L, trade-in payment
OCT. 16: U.S. Bank objects to Reagor-Dykes request for lenders to pay TT&L, trade-ins
OCT. 15: Compromise on vehicles in First Bank & Trust lawsuit v. Reagor Auto Mall
OCT. 15: Judge approves sale of Reagor-Dykes plane; Wells Fargo objects to portion of TT&L motion
OCT. 12: Ford Credit supports part of Reagor-Dykes' request for lenders to pay TT&L, trade-ins
OCT. 12: FirstCapital files counterclaim, motion to dismiss
OCT. 10: Reagor-Dykes aircraft to be sold, pending court approval
OCT. 10: Several filings in Reagor-Dykes bankruptcy case
OCT. 1: KamKad, Reagor-Dykes execute purchase agreement
SEPT. 24: FirstCapital Bank requests First Bank & Trust lawsuit against it, Reagor-Dykes, others move to federal court
SEPT. 21: Judge sets schedule, trial date in Vista Bank v FirstCapital Bank lawsuit
SEPT. 21: Former Reagor-Dykes CFO denies late payments, says Vista Bank attacked him, his family
SEPT. 20: Vista Bank sues former Reagor-Dykes CFO, claims loan default
SEPT. 19: Texas DMV: Reagor-Dykes should promptly resolve title issues
SEPT. 19: Brad, Kenneth Burgess file motion to dismiss Vista Bank lawsuit
SEPT. 18: First Capital Bank files motion to dismiss lawsuit
SEPT. 18: Court approves bid process for Reagor-Dykes Auto Group, extends use of cash collateral
SEPT. 17: Ford Credit, GM object to certain aspects of proposed Reagor-Dykes sale
SEPT. 14: Judge sets trial date in Ford Credit lawsuit vs. Reagor-Dykes
SEPT. 14: Reagor denies Ford Credit's claim vehicles sold out of trust
SEPT. 13: Dykes: Former Reagor-Dykes CFO admits he provided false info to Ford Credit
SEPT. 11: Reagor-Dykes Auto Group requests court to allow sale of company
SEPT. 4: Reagor-Dykes Auto Group establishes process to resolve customer problems
AUG. 31: International Bank of Commerce asks for court to allow it to foreclose on Reagor-Dykes dealerships
AUG. 31: More Reagor-Dykes companies, co-owners may soon file for chapter 11
AUG. 30: Court extends Reagor-Dykes employment of CRO; officer discusses potential dealership buyers
AUG. 29 : International Bank of Commerce asks for loan payment in Reagor-Dykes case
AUG. 29: Ford Credit objects to Reagor-Dykes earlier legal team
AUG. 27: Vista Bank doubles relief request in new federal suit against FirstCapital Bank
AUG. 25: Reagor-Dykes chief restructuring officer hires new legal team
AUG. 25: GM proceeding with termination of Reagor-Dykes Floydada
AUG. 23: Landlords demand rent for Reagor-Dykes dealerships in Lubbock, Plainview
AUG. 20: Ford Credit moves ahead with suit against Reagor, Dykes, some R-D companies
AUG. 18: Reagor-Dykes bankruptcy case: Read court order following Aug. 16 hearing
AUG. 17: Auto dealer claims Reagor-Dykes owes $513,000, vehicles may be in consumers' possession
AUG. 16: Vista Bank sues FirstCapital for $6 million, claims Dykes helped perpetrate check kiting scheme
AUG. 16: Bankruptcy court allows Reagor-Dykes continued use of cash collateral, hiring of CRO
AUG. 15: Reagor-Dykes Auto Group issues written apology
AUG. 14: Loss of Reagor-Dykes Chevrolet in Floydada a potential financial pitfall for city
AUG. 14: Vehicle auction company claims Reagor-Dykes owes it $687,000
AUG. 14: Ford Credit claims Reagor-Dykes is not following court orders; court grants extension to file docs
AUG. 13: U.S. Trustee opposes Reagor-Dykes request to hire chief restructuring officer
AUG. 10: Ford Credit: Reagor-Dykes fraud may be among largest of its type in U.S. history; GM files to terminate Floydada dealership
AUG. 9: Reagor-Dykes questions former CFO’s actions; Contractor claims $700,000 due now
AUG. 7: Former Reagor-Dykes employees claim they were not paid
AUG. 6: Customers concerned over Reagor-Dykes 'unwinding' process
AUG. 6: Ford suit against Reagor-Dykes on hold while bankruptcy case proceeds
AUG. 3: Judge approves Reagor-Dykes employee pay
AUG. 2: Mayor: Downtown Lubbock growth to remain strong regardless of Reagor-Dykes future
INITIAL STORY: Ford Motor Credit sues Reagor-Dykes; R-D files for chapter 11 bankruptcy