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The U.S. Attorney's Office for the Southern District of New York announced indictments Monday of two men for operating an alleged $80 million ATM ponzi scheme. Prosecutors charged Vance Moore II, 55, of Raleigh, N.C., and Walter Netschi, 62, of McKinney, Texas, with one count each of conspiracy to commit wire fraud and nine counts each of wire fraud, U.S. Attorney Preet Bharara announced Monday. FBI agents arrested Moore Friday in Garner, N.C., and Netschi surrendered to the U.S. Attorney's Office in Manhattan yesterday. The indictment charges that Moore represented himself as president of ATM Financial Services, a Delaware-based company, and that Netschi claimed he was president or general manager of various companies, including 36 Main of Nevada. Moore claimed his company serviced and maintained ATMs, and Netschi said his company purchased the ATMs after performing due diligence to determine how much cash they dispensed, prosecutors say. The companies claimed they deployed the ATMs in retail outlets nationwide. According to the indictment, the two raised $80 million between 2005 and January 2008 from individuals and small private-equity firms to purchase, manage and deploy 4,000 off-premise ATMs. "In truth, approximately 90% of the machines simply did not exist or were never owned by Moore or Netschi and hence could not legitimately have been sold by them to any investor," the indictment says. Moore and Netschi promised investors 20% to 25% return on their investment. They paid investors monthly dividends, which they claimed were funds earned from ATM surcharge fees, Jim Margolin, a spokesperson for the FBI in New York, tells ATM&Debit News, a CardLine sister publication. "In truth, these monies received by Netschi were from new investors (or new investments from existing investors), which were then transferred by Netschi and Moore's companies," the indictment says. A judge released Netschi hours later after he posted $3 million bail, Margolin says. Moore is ill and as of yesterday he had not appeared before a judge, he says.

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