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US Man Gets 8 Years Prison in 80 Million Dollar ATM Ponzi Scam

April 26, 2011
Total Loss: $80 Million

An Arkansas man was sentenced on Friday to eight years and four months in prison for helping run what prosecutors called an $80 million Ponzi scheme involving automated teller machines that were never bought.

Walter Netschi, 64, was sentenced by District Judge Thomas Griesa in Manhattan, the office of Attorney Preet Bharara said. Griesa also ordered the defendant to forfeit $80 million and serve two years of supervised release.

The government said Netschi and co-defendant Vance Moore induced people to buy roughly 4,000 ATMs, promising the machines would generate fees from cash withdrawals, but that 90 percent of the ATMs did not exist or were never purchased.

Source: Reuters
Posted in: Collusive Networks ACH and Wire Fraud
Tags: Ponzi schemewire fraudbank fraud