Bart Reagor, one of two principals of the beleaguered Reagor Dykes dealership group, has been ordered to repay Ford Motor Credit Co. an as-yet-undetermined amount in a civil lawsuit by the lender alleging millions of dollars in fraud.
Judge Sam Cummings of U.S. District Court of the Northern District of Texas signed an order Friday saying that due to the passage of time, Ford Credit can file an amended judgment for what is owed. It must do so on or before June 3. As of Wednesday morning, the updated damages had not been filed in electronic court records.
Last month, Rick Dykes, the other Reagor Dykes owner, agreed to a consent judgment with Ford Credit of $58.7 million. Tom Kirkendall, an attorney for Dykes, told Automotive News at the time that details of the consent judgment with Ford Credit are confidential, but if Dykes follows terms of the agreement, the $58.7 million will be returned to him. Ford Credit confirmed that there is a confidential agreement but declined to elaborate, including on whether Dykes could get back the money.
Ford Credit's lawsuit, filed July 31, said it was owed about $112 million because of alleged fraud by Reagor Dykes Auto Group of Lubbock, Texas. In its civil suit, Ford Credit accused Reagor Dykes of selling vehicles an average of 55 days before telling the lender and repaying floorplan loans. Ford Credit said Reagor Dykes sold more than 1,100 vehicles without repaying $41 million advanced for their acquisition.
The dealership group subsequently sought Chapter 11 bankruptcy protection Aug. 1. With the dealership group entities protected by the bankruptcy process, Ford Credit amended its lawsuit to name principals Dykes and Reagor as defendants.
