$80 Ponzi Scheme in Raleigh, NC – Vance Moore II Arrested
Posted on | September 21, 2009 | No Comments
Vance Moore II, a Raleigh, NC resident, has been arrested for allegedly participating in an $80 Ponzi scheme. A 10 page indictment charges Moore and Walter Netschi with creating a fraudulent scheme involving ATMS. The indictment claims that from 2005 through 2008 the men collected $80 million in investments for thousands of ATMS located across the country. The pair claimed the ATMs would generate money based on fees from withdrawals of cash.
The men did not use the investment money to purchase more machines rather to live a glamorous lifestyle. Each count of indictment could carry a maximum penalty of 20 years in prison and a fine of $250,000 or twice the the gross gain from the offense. The indictment seeks $80 in forfeiture from the two men.
The men basically found investors who were willing to put money down to buy ATM machines. The idea was to buy up to 4,000 machines and spread them through high traffic areas. The return on the investment would come through the fees that the ATMs charged to withdraw money. This seems like a logical idea except the owners did not acutally buy any ATM machines. They instead took the money and used it to live a life of luxury.
One of their investors asked the businessmen why there was not an ATM machine in a particular location. Moore claimed that ATM was removed and moved to another location in Florida. It is likely that the lies got totally out of control when investors started to ask questions. ”The defendants claimed the revenue in their investment opportunity derived from ATM fees. In fact, it was a classic Ponzi scheme,” Joseph Demarest Jr., assistant director of the FBI in New York, stated “The scheme itself, until discovered, was one giant cash machine.”
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Author: Jesse Wojdylo
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