Dealership Allegedly Owes Ford Motor $112M

Ford Motor Credit Demands $112M From Dealership Chain for Fraud Scheme
– Auto Finance News

Manatt’s Richard Gottlieb, co-chair of the firm’s financial services group, spoke with Auto Finance News to discuss the $112 million that Reagor Dykes Auto Group allegedly owes Ford Motor Credit Co.

The publication noted that Reagor allegedly posted false sales information and sold more than 1,100 vehicles without repaying floorplans; this scheme was difficult to uncover because lenders look at dealership performance over the past three to six months.

Gottlieb said that the transfer of vehicles between dealerships owned by the same entity may have allowed the dealership to address discrepancies or to claim one-off errors, thereby going undetected by the lender’s on-site inventory audits.

Read the article here