A federal judge on Wednesday refused to grant a protective order for the former Chief Financial Officer of Reagor Dykes, Shane Smith.
Smith and others have been sued by First Bank and Trust. Earlier this month in the lawsuit, Smith requested a protective order so that he would not have to reveal information in the ongoing lawsuit.
Smith “reasonably apprehends” a criminal case will be filed against him. Anything he reveals in his defense during the lawsuit could then be used against him in the criminal case – or so he argued in his request for a protective order.
FB&T argued that that request creates an unfair burden and could delay the lawsuit. The judge agreed.
No criminal charges have been filed against Smith or anyone else at Reagor Dykes.
Ford Motor Credit Company accused Reagor Dykes of fraud, and three local banks accused Reagor Dykes of committing a particular kind of fraud called check kiting.
Reagor Dykes companies are in bankruptcy.
Related Story: Former Reagor Dykes CFO seeks protective order
