GUILTY: Bart Reagor found guilty of false declaration to a bank | KLBK | KAMC
LUBBOCK and AMARILLO, Texas – A federal jury in Amarillo has found Bart Reagor guilty of one count of misrepresenting a bank.
A jury went into deliberation at 10:17 a.m. Thursday. The jury was deadlocked Thursday and much of Friday.
Ultimately, the jury found him guilty on one of the three counts. The verdict fell in the courtroom at 3:46 pm The jury members have been released and are now allowed to speak on the case if they wish.
Reagor was allowed to remain free until he was sentenced. The judge determined that it was not a flight risk or a danger.
Reagor was co-owner of Reagor Dykes Auto Group (RDAG). The company filed for bankruptcy in 2018 amid fraud charges. Ford Motor Credit Company called it the biggest fraud of its kind in US history.
But the collapse of the company was not at stake in the criminal trial. Something Reagor did and admitted to doing in 2017 was the basis of an indictment that was filed against him in April.
In closing arguments Thursday morning, Jeffrey Haag, a prosecution lawyer, told the jury that Reagor took about $ 1.76 million from RDAG. The move came just after IBC Bank loaned RDAG $ 10 million.
Reagor claimed that there was nothing wrong with taking money from your own business.
Haag told the jury that the money came from a $ 10 million working capital loan to Reagor Dykes Auto Group (RDAG). IBC Bank believed it would only go to the company. Haag said Reagor left out the fact that he was going to use part of the loan for his personal benefit.
Haag quoted an email in which Reagor said it should be “one million percent confidential” for him to withdraw money from RDAC after the loan from the IBC Bank.
Defense attorney Dan Cogdell said in closing arguments the case was judged on emotion because prosecutors did not have the facts. Cogdell referred to prosecutors playing Reagor’s audio swearing and shouting.
“Three years to investigate this case and it’s [the] evidence?”
Cogdell asked the jury. “Is that the kind of thing that’s supposed to convince you beyond a reasonable doubt?” Absurdity.”
Cogdell said nothing in the loan prevented Reagor from withdrawing money from the company.
Reagor will be sentenced at a later date after the judge has had time to order and receive a pre-sentence investigation (PSI). PSI will provide the judge with general information about Reagor.
The maximum penalty for making a false statement to a bank is 30 years.
Reagor has been charged with two counts of bank fraud and one count of misrepresenting a bank. But again, the jury found him guilty on one count of making false statements to a bank. The other two charges were not culpable.
As a result of the verdict, Reagor will likely lose $ 950,951.18 which the FBI seized from his personal bank account in November 2018. Forfeiture may also include “proceeds attributable to the offense.” The judge postponed a final decision on the confiscation.
The case was investigated by the Amarillo offices of the FBI and the US Department of Justice.
CLARIFICATION: The judge did not make a final decision on the confiscation of the money.