Reagor-Dykes Trustee Accuses Ford Motor Credit Company of Knowing About and Participating in Fraud

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A motion filed on Thursday, September 30th, by a Reagor-Dykes Auto Group trustee accused the Ford Motor Credit Company (FMCC) of knowing about fraud before the Reagor Dykes bankruptcy case began in August 2018 and participating in it.

EverythingLubbock reports trustee, Dennis Faulkner, claims FMCC made money from the fraud that bankrupted Reagor Dykes, stiffing businesses in Lubbock and the South Plains with unpaid bills.

He also asked for over 12,000 pages of documents to be released to the public, which FMCC asked to seal due to confidentiality. Stating trade secrets, business practices, and customer information were at stake.

The trustee accused FMCC of attempting to cover-up the truth by sealing the records and even submitted an email to the court as evidence. The email was from an FMCC employee dated January 18, 2018, and said, “Do not cc me on the Reagor audit items, because I do not want to know.” The email also had an image of an ostrich with its head in the sand.

FMCC denies and continues to deny all claims made by the trustee. As of the writing of this article, a judge has not ruled on sealing or opening the records.

The bankruptcy case remains in limbo even after a liquidation plan was approved, due to a claim that FMCC owes over $315 million to the bankruptcy estate.

Bart Reagor's criminal trial, where he faces charges of bank fraud and making false statements to a bank, is set for October 12th.