Countersuit: Vista Bank wrongfully used Reagor's accounts
Bart Reagor, co-owner of the Reagor-Dykes Auto Group, claims a bank he and the auto group did business at wrongfully took control of his personal accounts to offset debt Vista Bank claimed against him, according to court documents.
It's part of Reagor's counterclaims in Vista Bank v. Bart Reagor filed earlier this week. Vista's original suit, filed March 1 in Lubbock County, claimed Reagor is personally liable for $1,448,401.23 out of a $3 million loan issued in May 2017. Vista reports the last payment was July 6, 2018. While co-owner Rick Dykes signed the promissory note, only Reagor's name and signature is on the commercial guaranty.
Reagor claims Vista Bank "knowingly facilitat[ed] and support[ed] the continuation of a multi-million dollar check-kiting scheme" with Shane Smith, the company's former chief financial officer. Reagor claims this allowed Vista to "collect fraudulent deposits and charge exorbitant fees."
In his factual background, Reagor's attorneys claim Vista Bank knew the auto group's accounts there were part of Smith's check kiting scheme, but the bank never informed Reagor himself.
Vista Bank chose, instead, to reap the profit from hundreds of thousands of dollars in account analysis and overdraft fees, and then push the losses to Reagor when the scheme went bad.
Attorneys go on to claim "Vista Bank knew exactly what was going on", acknowledging a high number of daily deposits to perpetuate the scheme, made up of "large round-dollar checks" -- both indicators of check-kiting fraud, according to the FDIC, which routinely puts out warnings to all federally-insured banks.
In his counterclaims, Reagor's attorneys claimed Vista seized control and converted Reagor's personal accounts at the bank to cover its losses. This includes:
- $150,000 in a money-market account;
- $250,000 in certificates of deposit;
- $50,000 in checking accounts;
- $2 million in certificates of deposit bought by Reagor and Rick Dykes;
- $2 million in certificates of deposit bought through the Reagor-Dykes Auto Group.
Reagor claims Vista Bank "wrongfully exercised dominion and control" over those accounts, and wrongfully used those personal accounts to set off debt. He calls it a breach of contract and demands Vista Bank return those items in equity.
Additionally, Reagor claims Vista Bank aided and abetted Smith's check-kiting scheme, and accuses it of civil conspiracy and unjust enrichment.
Reagor demands a jury trial in this suit. District Judge Ruben Reyes has scheduled a hearing in Vista Bank v. Bart Reagor for Friday at 9 a.m.