Tuesday, September 29, 2009

ATM Ponzi Scheme Ended

Federal authorities say two men are charged in New York with an $80 million Ponzi scheme involving automated teller machines.
One of the suspects was arrested Friday in Garner, N.C. Authorities say the other is expected to surrender in Manhattan on Monday on charges of wire fraud, and conspiracy to commit wire fraud.

The U.S. attorney in Manhattan and the FBI say the men solicited investments for ATMs, saying they would generate revenue from cash withdrawal fees.

The machines supposedly were to be placed in retail locations around the country, including convenience stores, gas stations, malls and hotels.

Most of the machines didn't exist, or were never owned by the men.

The alleged scheme occurred from 2005 to January 2008.

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