Ford dealer owes $116,000,000

Crazy, I have done a TON of business with these guys.


http://www.lubbockonline.com/news/201808...edit-files-suit

That�s a lot of money.

Huh. I just finished taking Secured Transactions in the spring. This article is driving home lots of the subject matter.

How does this even happen??

They were getting multiple loans for customers at separate banks. Getting funded from both. Very very bad deal. When stuff like this happens it makes it hard on the other dealers.

You sell a vehicle that you have floored or floor planned. You have an agreement to pay those off within 10 days of being funded. They were waiting on average 55 days. Playing a shell game trying to stay afloat.

I would suggest that possibly whomever at Ford continued to approve additional credit for him as I would expect this problem to have developed over time, might need a good talking to, possibly a strongly worded memo. Lol

A strongly worded memo may be excessive. What happened to the kinder gentler WAWI?

Wasn't this pretty much the basis for the movie Fargo?

I was running a boat dealership when the FB freaking I came and locked us up for exactly the same thing the owner was doing at his car dealerships. They seized all of his holdings.

Yes it did indeed suck.

They just send floorplan audit companies out to check vins. You give them a list of when they sold. They were fibbing on the dates and got caught.

I purchased the wife�s vehicle through their store in Addison. They were great to deal with. They don�t seem like the type of company that would be shady, but you never know.

Ford Motor Company awarded Reagor Dykes Ford in Lamesa and Plainview the President�s Award in mid-July. The awards are given for customer service, satisfaction and overall experience.

Yes, I understand it�s fraud, I am just amazed they didn�t get caught before getting to $160,000,000.

Maybe we won�t have to listen to their adds on the ticket anymore. I almost stopped listening bc of them.

You betcha.

The Dykes part of it is Spyke Dikes son. Sad deal.

How many loans did they get you on the Lexus? LOL

How would you feel if you had a loan you knew about, and another one on same vehicle that they were just making payments on for you? It's crazy what they did.

Every time you apply for a loan, initially your credit rating gets a slight ding.

If this auto group was taking out fraudulent loans for all these customers, this story could take a while to unravel.

And if they put a stamp on any of the envelopes, it becomes a Federal crime--I'm not a lawyer, but I watched that John Grisham movie.

2 or 3, we only pay one of them though.

I suspect they will be eligible for federal prison time. Federal prisoners do not earn credits to be released early. Come on silver bracelets and orange jumpsuits as he is a very deserving person for these fashion accessories.

This is pretty much just like the bank and home loan collapse many years ago when banks gave home loans for properties that virtually did not exist nor were they being sold or purchased. Greed and love of money is a very ugly thing to see.

They made some bad decisions, but the bigger picture here are the employees and the community who were not involved in this, but will feel the loss and pain of a company that was very philanthropic in Lubbock.

From what my step dad said, federal time is like a country club compared to TDC. He did plenty of time in both.

jerry lundegaard

Customer: We sat here right in this room and went over this and over this!
Jerry: Yeah, but that TruCoat--
Customer: I sat right here and said I didn't want no TruCoat!
Jerry: Yeah, but I'm sayin', that TruCoat, you don't get it and you get oxidization problems. It'll cost you a heck of lot more'n five hundred--
Customer: You're sittin' here, you're talkin' in circles! You're talkin' like we didn't go over this already!
Jerry: Yeah, but this TruCoat--

source: Moviequotedb.com

good ol' greed


he sounds so nice in his commercial with Tony Romo

One of the worst, cheesiest, cringiest commercials ever

corporate case of "check kite-ing"....happens a lot to used car lots....

The article is kind of vague, but I don't think that's what was happening. It couldn't have been in fact, because after 2-3 missed payments the bank not getting the payments would have had the vehicle repossessed and this would have been figured out much sooner.

This financing was through Ford Motor Credit for inventory for the dealership itself. They would finance inventory through FMC at one location, then finance the same inventory again for a different location.

^^^^^^^^^^

Good stuff. 9-320 allows the buyer to take free of the security interest where it would not have been able to do so if it were just a one-off deal. You probably know that, but this reinforces it.

9-320, 9-321 whatever it takes.

Yeah, I remember the whole BIOCOB thing, even though I can only remember half the elements. I just find it amazing that the secured creditor didn't have a better handle on what was going on. We've dealt with a couple of securitized mortgages (paying off the last one this year thank God!) and that lender was checking on us every single month.

You should live here in Lubbock. We had to endure his commercials nearly every other one. Arms flailing and yelling �Give us a shot!� I remember him when he was Gene Messer�s Toyota floor manager. Made me cringe whenever I even thought of buying a Toyota. The local news networks didn�t even carry the story during the 6pm news because a ton of their advertising $$ came from them and they wanted to substantiate the claims before they released it. It was listed on the news website but not televised until later on. I bet he won�t see a day in jail.

I represented a bank several years ago where the dealer had several floorplan lender and was giving them just enough original certificates of title to make them happy, and certified copies and copies the rest of the time, borrowing money from all 3 on the same vehicles, then leasing the vehicles and selling the vehicles. You just never know. Jail time on that one.

talk about a nightmare,I know of an instance where a guy bought a boat,paid about 1/3 down down in cash and financed the remainder...he moved out of town to a different state but kept making his payments to the bank...about a year later sheriffs deputy and repo man showed up and repossessed his boat....
turns out the dealer had never paid the bank the 1/3 down payment the guy had made...
guy actually ended up losing the boat because it wasn't worth paying the down payment money plus remainder of the balance due on the note...

No more commercials on The Ticket. This will make listeners happy.

If you've ever seen Bart Reagor in a commercial you would not be surprised that this has taken place. The guy just oozes with slimy body language in the way he acts in the commercials.
He always asks the viewers if the want to know a "secret." When this was reported on the news last night out of Amarillo my wife and I both died laughing. Everyone now knows the "secret!"

I have heard people say he's a nice guy, but I've always felt the more profound and obnoxious a car dealer's / manufacturer's commercial is the rougher the screwing is going to be on the buyer!

Try living in Lubbock..Ads are non stop..

Somebody gonna end up in a wood chipper.

Anyone remember Billy Sol Estes and his fertilizer storage scam? Same principal and the dude did big prison time. My first job in finance was with a large national company that loaned him a bucket load of money. Not long after being hired I was given the job of cleaning up the files as they were dated, old, and no longer needed. I kid you not there were two 4 drawer file cabinets full of nothing but his dealings with the company.

thats a great story
did Mike Cochran from The AP interview you?

Yep and I remember Robert Johnson Land and Cattle Company. One summer when I was in highschool I drove one of the 12 bulldozers he had leased to clear thousands of acres of mesquite pasture land he wanted to put into wheat production... quick.

https://www.timesrecordnews.com/story/mo...ndles/93154910/

Better hope Clay Cooley doesn't take over that dealership.

The Ticket commercials were terrible. You think Romo got a �heads up� call about this?

Shop me first, shop me last. Either way, come see Clay.

I was in high school in Crane when the Bille Sol deal was going on. He had hundreds if not thousands of ammonia tanks financed that didn't exist if I remember right.

Ditto