Lessons from Lubbock — The Reagor Dykes Case
Hinshaw continues our Automotive Finance Virtual Series with a webinar featuring partners Stephen Strohschein and Stephanie Tolson discussing Lessons from Lubbock — The Reagor Dykes Case on Tuesday, September 19, 2023.
The Reagor Dykes Auto Group—based in Lubbock, Texas—held seven new car franchises when it filed for Chapter 11 bankruptcy in August of 2018. The ensuing events resulted in 15 employee indictments together with guilty pleas to either bank or wire fraud and a criminal bank fraud conviction of one principal.
Several confidential bank settlements, which were likely in the low multiple-seven-figure range, and a confidential settlement of a $315MM suit against the primary floorplan lender were ordered.
While the egregious facts of the case may not be repeated, they provide interesting lessons for floorplan lenders, banks, and other secured lenders.
If you are interested in attending or have any questions, please contact Stephanie Bryk.