Clovis auto broker accused of swindling banks and customers faces federal charges

A Clovis auto broker pleaded not guilty Monday to a nine-count federal indictment that charges him with bank fraud and aggravated identity theft in a scheme that prosecutors say involve at least 48 vehicles and the theft of more than $2 million.

Scott Radtke, owner of California Motoring Co., is accused in U.S. District Court in Fresno of executing the scheme to defraud banks and his customers from January 2016 to June 2017.

Radtke surrendered to the U.S. Marshals Office on Monday morning. He was later escorted into court by two U.S. Marshals, but was not wearing handcuffs or leg irons.

After reading Radtke’s financial disclosure statement, Magistrate Judge Barbara A. McAuliffe ruled that Radtke didn’t have the financial means to hire an attorney, so the judge appointed attorney Victor Chavez of the Federal Defender office to represent him.

Acting on a pretrial report, McAuliffe also allowed Radtke to remain free on his own recognizance. Radtke’s next court hearing is Sept. 4 to give Chavez and prosecutor Michael Tierney time to discuss a possible plea agreement.

According to the U.S. Attorney’s Office, Radtke offered customers the opportunity to buy vehicles from other dealerships. Radtke received “up-front” money from customers or their banks, but he did not give that money to the other dealerships, prosecutors said.

Instead, he spent it on business or personal expenses. Radtke then signed the customers’ names on the sale documents and loan applications, which led banks to issue loans without the customer’s knowledge or authorization, prosecutors said.

If convicted in federal court, Radtke, 56, faces up to 30 years in prison and a $1 million fine.

Radtke had been in business in Clovis for 14 years.

He also faces felony charges in Fresno Superior Court in connection with his car dealership.

On Oct. 2, Radtke was arrested after his customers reported him to authorities. At the time, the DMV said the number of victims was around 25 car dealerships, 16 financial institutions and 66 customers who lost a total of $2.9 million. They include at least three older people, for which Radtke has been charged with elder financial abuse.

Court records show Radtke pleaded not guilty on Oct. 4 to 98 charges of grand theft, theft from an elderly person, acts constituting forgery, identity theft and fraud. He is free on $681,000 bail.

Because federal charges have been filed, defense attorney Maribel Romo of the Fresno County Public Defender’s Office said Monday that Radtke’s case in Superior Court will likely be dismissed.