AMARILLO, Texas (KCBD) - The sentencing hearing for Shane Smith, the former CFO for the Reagor-Dykes Auto Group who pleaded guilty to one count of wire fraud, has been rescheduled for 1:30 p.m. on Jan 7.
The original sentencing date was scheduled for today at 9 a.m.
Smith faces up to 20 years in prison, probation and pay a restitution of more than $50 million since his guilty plea of conspiracy to commit wire fraud in mid-June. He was the first person to receive a criminal conviction since RDAG filed for bankruptcy and was sued by Ford Motor Credit in August of 2018.
Court documents show Smith and co-conspirators gave fraudulent information to Ford Motor Credit through a check-kiting scheme. Smith is said to have provided false information that helped RDAG get additional financing from Ford and delayed other payments to the company.
According to court documents, the floor plan fraud cost FMCC around $27 million. The check-kiting is estimated to have caused a $23 million loss for victim banks.
Since Smith’s plea, two other former employees with RDAG — Sheila Evans Miller and Diana Herrera — admitted to playing a role in the scheme. Those two told the court RDAG had a plot that concealed fraud by cross-depositing checks across several banks.
Documents show RDAG employees resorted to this because it was struggling financially because of its growth, above-market compensation and unnecessary overhead. RDAG was said to have dedicated an entire team to its check-kiting scheme.
This morning’s sentencing is set to take place inside a federal courthouse in Amarillo.