A Texas man has been convicted for his alleged role in the operation of a
Ponzi scheme involving $80 million. A federal jury in New York City convicted the man
on Monday, November 15, 2010.
According to prosecutors, Walter Netschi, 63, of McKinney, Texas, operated
an $80 million Ponzi scheme where he convinced unsuspecting investors
that their money was being used to purchase thousands of automated teller
machines (ATMs) between 2005 and January 2008. However, the majority of
ATM machines were apparently never purchased.
Mr. Netschi’s co-conspirator, Vance Moore, pleaded guilty in October
for his involvement in the multi-million dollar investment scam. He pleaded
guilty to 10 counts including wire fraud conspiracy and wire fraud. His
sentencing is scheduled for January 2011.
Mr. Netschi’s sentencing is scheduled on March 2, 2011. He faces
a maximum penalty of 200 years in prison and a fine of over $2.5 million.
The pair allegedly told investors that the ATMs would be placed in various
retail locations across the nation, such as gas stations, convenient stores,
malls and hotels. However, prosecutors claim that about 90 percent of
the ATM machines either did not exist or were never owned by Mr. Netschi
or Mr. Moore.