Thirteenth Reagor Dykes employee sentenced

 

Date: June 9, 2021

Contact: newsroom@ci.irs.gov

The thirteenth Reagor Dykes Auto Group employee was sentenced for her role in the auto group's floor plan fraud scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Andrea Kate Phillips pleaded guilty in January to misprision of a felony. On Tuesday, she was sentenced to 4 years' probation and ordered to pay $40,254,297.72 in restitution by U.S. District Judge Matthew J. Kacsmaryk.

In plea papers, Ms. Phillips, an accounting associate and office manager at Reagor Dykes Plainview LP (a Ford store in Plainview, Texas) admitted the auto group participated in a fraudulent floor plan fraud scheme.

Ms. Phillips admitted that the auto group routinely sold vehicles "out of trust" – meaning that they failed to repay lenders within seven days of selling the vehicle financed by that lender.

Just before the lender conducted audits, Ms. Phillips admitted she routinely would create documents falsifying vehicles sales dates on official paperwork to make it appear as though the vehicle had sold within the prior seven days and was not yet out of trust.

Ms. Phillips is the thirteenth RDAG employee sentenced to more than 30 years combined in federal prison for the dummy flooring and check kiting scheme. Reagor Dykes employees previously sentenced include:

  • Diana Urias, an office manager in Reagor Dykes' used car mall in Levelland, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 2 years in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
  • Sheila Miller, an RDAG group controller, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
  • Paige Johnston, an office manager in Reagor Dykes' Chevrolet store in Floydada, pleaded guilty to conspiracy to commit wire fraud and was to 27 in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
  • Lindsay Williams, and RDAG group accounting manager, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
  • Sherri Wood, an office manager at Reagor Dykes' Ford store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
  • Pepper Rickman, an accounting controller at Reagor Dykes' Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 4 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
  • Brad Fansler, an RDAG group administrative director, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 42 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
  • Ashley Dunn, executive assistant to the CEO, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
  • Whitney Maldonado, an office manager at Reagor Dykes' Mitsubishi store in Lubbock, pleaded guilty to conspiracy to commit wire fraud was sentenced on 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
  • Elaina Cabral, an office manager at Reagor Dykes' Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
  • Mistry Canady, an office manager at Reagor Dykes' Ford store in Lamesa, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 2 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
  • Wesley Neel, RDAG Safety & Compliance Manager, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.

Steven Reinhart, RDAG Legal Compliance Director, and Shane Smith, RDAG CEO, both have pleaded guilty and are awaiting sentencing. Bart Reagor, owner of RDAG, is scheduled for trial in October.

The Internal Revenue Service - Criminal Investigation Division and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch prosecuted the case.