Manhattan U.S. Attorney Charges President of Money Services Company with $12 Million Bank Fraud

PREET BHARARA, the United States Attorney for the Southern District of New York, and JOSEPH M. DEMAREST, JR., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced the arrest of ROBERT EGAN, the President of Mt. Vernon Money Centers ("MVMC"), on charges of defrauding Webster Bank out of $12 million in funds that had been entrusted to MVMC. Among other money services, MVMC performed the services of replenishing Automated Teller Machines ("ATMs") for banks and other entities. One of MVMC's clients was Webster Bank, which has 162 ATMs that MVMC was responsible for stocking. Webster Bank would transfer the funds needed to replenish their ATMs to a bank account to which MVMC had access. MVMC collected this cash, took it to its own cash vault where it filled ATM "canisters" with the cash. MVMC employees then removed the depleted or partially-depleted canisters from Webster ATMs and replaced them with newly filled canisters. The canisters removed from the ATMs by MVMC employees typically contained "residual cash" that was supposed to be returned to Webster Bank, or retained by MVMC for the benefit of Webster. Posted in: Internal Fraud