NEWS

3 from Clark Motor Co. charged with fraud

Bethany Bruner
Reporter

COLUMBUS – Three brothers involved in the Clark Motor Co. plan to plead guilty to federal charges of fraud and money laundering, according to documents filed in U.S. District Court.

Phillip C. Clark, David Clark and Christopher Clark, all of Newark, were charged last month with one count of scheming to defraud and one count of money laundering.

All three brothers are listed as general partners in the business, with Phillip Clark named as president, Christopher Clark as vice president and David Clark as treasurer, according to court records.

According to court documents, the three brothers purposefully used two bank accounts — at separate banks — to inflate their balances at the other bank. More than 200 checks were cross-deposited in accounts at Ohio Heritage Bank and Century National Bank between Jan. 2 and Jan. 22, 2013.

According to court records, the brothers were "taking advantage of the float time in the banking system, thereby causing checks that would normally be returned for non-sufficient funds to be paid or honored by the issuing banks" for a total of more than $7.4 million.

Money was borrowed from banks to purchase vehicles and an advance on a floor plan for a business was obtained from a bank, despite the brothers receiving an advance from another business, according to court records.

Since early 2013, Clark Motor Co., formerly located on Hebron Road in Heath, has faced its share of legal issues. A Licking County judge ordered more than $1 million be paid to Century National Bank in February 2013 as a result of a lawsuit.

That ruling came just days after the Clark Motor Co. auto lot was emptied of cars.

Ohio Attorney General Mike DeWine also sued the business in 2013 for not giving titles to people who purchased vehicles there. That lawsuit is still pending.

According to federal court records, each of the brothers has reached a plea agreement for the charges against him. Details of those agreements are not available at this time.

Court records show the maximum penalty would be up to 30 years in prison and a $1 million fine. No sentencing date has been set.

Clark Motor Co.'s business location at 1070 Hebron Road is now vacant.

Clark Motor Car, a business owned by Ron Schenk, according to the Ohio Secretary of State's website, was registered as a business in late 2013. The dealership is located at 550 Hebron Road and has signage similar to the previous business.

David Clark confirmed Tuesday he does work at Clark Motor Car. He said neither of his brothers are employed at the business.