LUBBOCK, TEXAS — Ford Motor Credit filed more documents with the bankruptcy court last Friday claiming Reagor-Dykes Auto Group misrepresented sales-reporting data to Ford Credit.

Ford claims this could be one of the largest floor-plan financing frauds in U.S. history, according to KCBD.
Ford believes Reagor-Dykes was stretching out the time it was using to pay off vehicles it sold to customers.

During a Ford Credit investigation, they discovered the auto group was selling vehicles on average of 55 days before reporting the car sales to Ford Credit.

The documents also claims Reagor-Dykes fraudulently obtained double-flooring from Ford Credit, reported KCBD. Double-flooring is an illegal practice where a single vehicle is used as collateral for more than one loan.

Ford Credit also says Reagor-Dykes secured inventory financing for vehicles it had already sold. By listing the vehicles as current inventory, Reagor-Dykes was then able to obtain additional financing.
According to Ford, Reagor-Dykes "squandered more than $41 million on the current management's watch — through either their own fraud or gross mismanagement."

According to KCBD, Ford Credit filed the documents requesting the court appoint a trustee to recover and preserve assets for the liquidation of Reagor-Dykes and provide payment to creditors.