Brothers from Spokane and Post Falls and a third man have been indicted on a federal charge of conspiracy to commit bank fraud in a scheme that investigators say bilked $6 million from KeyBank.
Local and federal law enforcement agencies arrested this week 49-year-old Roger Spangenberg, of Post Falls, and 52-year-old David Spangenberg of Spokane, who were the owners of the now closed D&R automobile dealerships that had been located in Hermiston and Enterprise, Ore. Steven Johnson, 63, of Aberdeen, Wash., managed the dealerships. He was also indicted as part of the case.
Between 2007 and 2008, the Spangenberg brothers obtained loans from KeyBank to purchase cars. They then sold the cars without paying back the loans, according to a news release.
“These defendants left a multi-million dollar trail of destruction in eastern Oregon,” Assistant U.S. Attorney S. Amanda Marshall wrote.
The defendants all face up to 30 years in federal prison and a maximum $1 million fine.