Three Plead Guilty to Nationwide Ponzi Scheme Involving ATMs and Advertising Monitors
Two residents of Oxnard, CA and a South Carolina man pled guilty last week
to participating in a $41 million investment scheme that defrauded approximately
700 investors across the country.
Alan G. Flesher, Wayne D. Flesher, and Nancy Carol Khalial solicited investments
in two Ventura County companies, Unlimited Cash Inc. (UCI) and Douglas
Network Enterprises Inc. (DNE), over a period of at least four years.
According to the U.S. Attorney’s Office, the defendants told investors
that the companies would sell ATMs and “Ad Toppers” (computer
monitors capable of displaying video announcements) and then display them
in commercial locations for profit.
The defendants told investors that they would receive income from the ATM
transaction fees and any advertisement revenues generated by the Ad Toppers.
In reality, however, most of the ATMs and Ad Toppers sold to investors
were never displayed in commercial locations. Instead, the defendants
used the majority of the investors’ funds for their personal purposes
and to perpetuate the
Ponzi scheme, which began at least as early as April 2001, according to the SEC.
In April 2006, the SEC filed a Complaint against Wayne Douglas Flesher,
Nancy Carol Khalial, UCI, DNE, Clifton Curtis Sneed, Jr., and Sneed Financial
Service, LLC, for fraudulently offering and selling more than $18 million
worth of Ad Topper investments. Alan G. Flesher was not named in the Complaint.
Federal charges were not filed against Flesher, Flesher, and Khalial until
Aug. 2010. (To learn more about the SEC’s allegations, click
Based on the plea agreements, each defendant could face up to 340 years
in prison for his/her role in the investment scheme. Sentencing hearings
are scheduled for October 1.