The owners of the former D&R Auto Sales in Hermiston have been charged with bank fraud conspiracy.  

Roger Spangenberg, of Post Falls, Idaho, and his brother, David Spangenberg, 52, of Spokane, owned the D&R Auto Sales, D&R Motors and D&R Ford/Mercury in Hermiston and Enterprise. All three businesses are now closed.

An indictment accuses the duo, along with Steven Johnson, 63, of Aberdeen, Wash. of a bank fraud conspiracy that cost KeyBank more than $6 million.

The Spangenberg brothers operated D&R auto dealerships in Hermiston and Enterprise, and  Johnson served as manager. 

KeyBank’s line of credit allowed the dealerships to buy inventory, but the Spangenbergs and Johnson allegedly failed to repay the bank even after they sold vehicles.The men allegedly covered up the sales by asking customers who recently bought vehicles to return them for free service on the day of a scheduled audit.

All three men have pleaded not guilty, and a trial is set for March 27 in Portland. The maximum sentence for conspiracy to commit bank fraud is 30 years in prison and a $1 million fine.