Bart Reagor withdraws objections to forfeit $1.76 million
LUBBOCK, Texas (KCBD) - Weeks ahead of his scheduled sentencing, Bart Reagor has withdrawn prior objections and will pay the federal government $1,760,000 that was the center of his conviction last year.
In October, a jury convicted Reagor of making a false statement to a bank. Specifically, he transferred more than $1.7 million to his personal accounts from a $10 million working capital loan provided by International Bank of Commerce, intended to be used solely for the Reagor-Dykes Auto Group.
A filing submitted to the court Friday by his recently hired attorney, John Markham, II, stated “[g]iven the law cited by the government in Forfeiture Motion and given the verdict, there is no basis on which Defendant Reagor can oppose the Forfeiture Motion.”
The court’s order also states Reagor will forfeit $950,951.18 the FBI seized November 2, 2018, from a Prosperity Bank account. The order states this money would be given to the government “as a substitute asset,” though it is not clear if this is in addition to the $1.7 million total.
In late December, a judge denied Reagor’s request for a new trial or acquittal, citing evidence referenced by both defense attorneys and federal prosecutors, specifically an email from Reagor to RDAG CFO Shane Smith and co-owner Rick Dykes, “expressly stating ‘confidential’ instructions for the diversion of loan proceeds.”
The Judge also cited trial testimony from International Bank of Commerce President and CEO Bill Schonacher, saying he would not have approved the loan if Reagor had told him in April of 2017 of his intention to distribute part of the loan. RDAG Legal Compliance Director Steven Reinhart also testified that had he known Reagor’s intentions, he would have told him he couldn’t move these funds to personal accounts.
FBI Special Agent John Whitworth’s testimony was also cited, saying in trial $1.7 million from the IBC loan was diverted to Reagor’s personal accounts and used to pay for renovations to Reagor’s “mansion... on 19th Street.” In the trial, a recording was presented of Reagor stating his displays of wealth, including planes and his mansion, made him “a bad motherf-----er.”
Reagor is scheduled to be sentenced in Amarillo March 10. Reagor faces up to 33 years in prison.
Former Reagor-Dykes chief financial officer Shane Smith was sentenced last month to seven years in prison and ordered to pay more than $59 million in restitution. This was the longest prison sentence and greatest restitution amount of the 15 former Reagor-Dykes employees sentenced.
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