Bart Reagor, owner of Reagor-Dykes Auto Group, was convicted by a federal jury on Friday of lying to a Federal Deposit Insurance Corporation-insured bank.
Reagor-Dykes Auto Group was founded in Lubbock, Texas in 2003 and filed for bankruptcy in 2018, according to a report by ABC7 Amarillo.
According to evidence presented at trial, Reagor, 55, informed the International Bank of Commerce of tremendous company growth in 2017, Acting U.S. Attorney Chad E. Meacham said in a statement on Friday.
In order to help sustain the company’s alleged growth, the IBC granted a $10 million working capital loan to be allocated to various Reagor-Dykes Auto Group entities. Meacham said $5 million was supposed to be distributed in July 2017 and another $5 million distributed in February 2018.
“Instead of investing all of the money into the business as he’d said he would, [Reagor] diverted more than $1.7 million to his personal account at Prosperity Bank — $766,277 in July 2017, following IBC’s disbursement of the first tranche of money, and $1 million in February 2018, following IBC’s disbursement of the second tranche of money,” Meacham said.
Charges against Reagor were for making false statements to a bank insured by the FDIC and for bank fraud. Meacham, however, said the federal jury acquitted Reagor of bank fraud.
A sentencing date for Reagor has not been set.