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Manhattan U.S. Attorney Charges Two Defendants In $80 Million Ponzi Scheme
September 21, 2009Preet Bharara, the U.S. 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 FBI, announced the unsealing of a ten-count indictment charging Vance Moore II and Walter Netschi for allegedly perpetrating an $80 million Ponzi scheme involving investments in Automated Teller Machines (ATMs). Moore was arrested Friday afternoon in Garner, N.C. Netschi is expected to surrender to federal authorities in Manhattan this morning. According to the indictment unsealed in Manhattan federal court: From 2005 through January 2008, Moore and Netschi solicited over $80 million dollars worth of investments in ATMs purportedly placed in various retail locations around the country, including convenience stores, gas stations, malls and hotels. Moore and Netschi claimed that the ATMs would generate revenue streams for the victims based on fees charged for withdrawals of cash. In truth and fact, Moore and Netschi did not use the victims' funds to purchase ATMs, but rather used the money to further the fraudulent scheme and to enrich themselves. Full release.