LUBBOCK, Texas (KCBD) – documents filed Wednesday by the court appointed counsel that is special Debtors describe a ‘side deal’ between RDAG CFO Shane Smith and Vista Bank CEO John Steinmetz that supplied Steinmetz with steeply reduced leases for luxury cars. Although this had been taking place, court papers state Vista Bank ended up being alert to RDAG check-kiting schemes.
“The two worked together, each profiting from the other’s misconduct, ” in line with the papers filed by Andrew Seger, the court appointed special council. « Vista Bank President, John D. Steinmetz, personally enriched himself through kick-backs (by means of roughly $150,000 in subsidized luxury vehicle leases for their individual usage, funded by Debtors), while as well he and Vista Bank at large benefited through the massive bank charges it obtained and also the prestige of getting a ‘top shelf’ consumer while pursuing a growth-at-any-cost strategy. These advantages to Vista Bank and its particular owners and executives proved consideration that is ample just allowing CFO Smith’s proceeded fraudulence. ”
“Vista knew the character in addition to level of Shane’s schemes that are fraudulent. Definately not stopping them, they took active measures to assist Smith carry his schemes out, ” according to your papers.
Listed below are excerpts through the documents released today:
The document defines just how, “Steinmetz, for himself and their household, surely could rent listed here automobiles just for 36 per cent regarding the quantity he was otherwise obligated to pay: (i) 2015 Cadillac Escalade; (ii) 2015 Chevrolet Tahoe LTZ; (iii) 2016 BMW 750i Xdrive; (iv) 2016 Infinity XQ80, and; (v) a 2016 Toyota Land Cruiser. The debtors made some $146,410.02 for the reason that respect, and from December 15, 2014, through the filing associated with the bankruptcy petition in direct rent re re payments up to a renting business and also for the good thing about John Steinmetz and against a obligation of $228,150. ”
Through the years, the cars increased in quality, the documents state. “In the months which preceded the bankruptcy, Smith and Steinmetz had been in active conversations regarding acquiring an Aston Martin (of James Bond popularity) for Mr. Steinmetz’s utilize. The of the deal, but presumably it might have already been under comparable terms whilst the five other automobile leases. ”
“In particular it ought to be noted that Steinmetz obtained extra leases over summer time of 2017. The timing for the 2017 leases had been particularly suspect, while they took place close to the full time that Debtors Reagor Dykes Imports, L.P. (“Lmitsu”), Reagor Dykes Plainview, LP (“RDT”) and Reagor Dykes Auto Company, LP (“RDAC”) received a $3 million dollar unsecured loan from Vista Bank and also at an occasion that its checking reports were frequently overdrawn by thousands and thousands of bucks. Suffice it to state, the Leases when it comes to 2016 BMW 750i Xdrive and 2016 Toyota Land Cruiser were performed just one single thirty days ahead of the $3 million buck unsecured loan ended up being authorized. The Infinity QX80 ended up being leased by Steinmetz 30 days following the $3 million buck loan that is unsecured authorized. ”
One element of the fastapprovalpaydayloans.com sign in papers filed today states, “The increase of Vista Bank President, John D. Steinmetz, from their days as a banker that is junior Plains Capital Bank, to Lubbock County Republican Party seat, then as President of Vista Bank and ultimately to successive appointments as an associate regarding the Board of Regents associated with Texas Tech University System happens to be well chronicled. For a guy forty-one years that is a serious application. Certainly it is fairly a resume for some body of every age. All the trappings of an American success story– right down to the shiny luxury car as was the case with Shane Smith, on the surface, Steinmetz bares. But like Shane Smith, all wasn’t because it appeared to be. ”
Documents additionally describe many years of email messages between RDAG CFO Shane Smith and bank officers regarding overdrafts and unconventional hours kept to ensure after-hours bank deposits might be created by RDAG suggesting a relationship that is causal the favors done for Steinmetz while the bank’s habitual tolerance of RDAG overdrafts.
“And this really is the reason the deals between Smith and Steinmetz are incredibly important- they supply a lens by which view Vista’s subsequent conduct. And Vista’s conduct, whenever seen from a goal viewpoint, just cannot be explained except by the summary it was a participant in Smith’s schemes.
The plaintiffs and cross claimants look for to disallow the entirety of Vista Bank’s liens, claims and results in of action in the bankruptcy instance.