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The Reagor-Dykes legal team submitted court documents Wednesday, Feb. 12, accusing FirstCapital Bank of perpetuating the financial fraud scheme designed by former Reagor-Dykes CFO Shane Smith.

In their complaint, Reagor-Dykes claims to have evidence, such as emails and bank statements, that prove the CEO of FirstCapital Bank, Brad Burgees, actively knew about Reagor-Dykes accounts being overdrawn by millions of dollars as soon as early 2017 and was in direct contact with Shane Smith about how he wasn’t comfortable with the situation.

Yet, Reagor-Dykes claims that Burgees never did anything to stop Smith from using company bank accounts like lines of credit despite having the financial documents necessary to see that the actual revenue of various Reagor-Dykes entities was far less than the false deposits being made by Shane Smith.

FirstCapital Bank responded to these allegations on Wednesday with the following statement:

"The lawsuit filed by the Reagor Dykes bankruptcy estate has no merit and is simply an effort to shakedown FirstCapital for a fraud perpetrated by Reagor Dykes and its 12 and counting employees who have already pled guilty to the crimes.

No one at FirstCapital was aware of the fraud underway at Reagor Dykes until learning so in connection with the Reagor Dykes bankruptcy filings. FirstCapital is a victim of Reagor Dykes’ massive fraudulent scheme and nothing more.

Now, the bankrupt shell of Reagor Dykes is suing FirstCapital for failing to tell Reagor Dykes that it was defrauding FirstCapital and many others. Only in a land where up is down and down is up does that make sense."