MIDLAND, Texas — Reagor-Dykes Auto Group owner Bart Reagor was sentenced to 14 years in federal prison Thursday, according to a press release.
In October, Reagor was convicted of lying to the International Bank of Commerce about his company's prospects.
According to court documents, in 2017, Reagor told the bank that the company was growing quickly, and they were expecting to go public. He said because of that, they would need cash to maintain a cushion for dealerships to operate.
IBC granted the company a $10 million working capital loan. That loan was distributed in two separate $5 million payments in July 2017 and February 2018.
Reagor took $1.7 million of the first bank payment and $1 million of the second payment for his personal bank account.
His sentencing requires him to forfeit the money he took from both of those payments.
In a previous testimony, former CFO for the company, Shane Smith, estimated that Reagor and his partner, Rick Dykes, withdrew more than $25 million from the company over the course of 10 years.
Smith was sentenced to seven years in prison for wire fraud conspiracy in January.
Additionally, 15 of Reagor's employees previously pleaded guilty to various financial crimes.
New videos introduced at his sentencing show Reagor getting on to his employees for not meeting sales targets. This included video of him telling employees, that anyone bringing home a five-digit salary is “broke as [expletive]” and living “a chump life.”
U.S. Attorney for the Northern District of Texas Chad E. Meacham referenced the new footage in his response to the sentencing.
“To Bart Reagor, anyone who isn’t a millionaire is a chump," said Meacham. "And Mr. Reagor couldn’t face being a chump. So, instead of doing his best to grow his business honestly, he padded his personal bank account by lying to a federally-insured bank. I imagine he will spend the next 14 years behind bars regretting that decision. The Justice Department will not tolerate abuse of our nation’s financial institutions.”
Reagor must report to prison by May 9, according to a court docket.