Man Pleads Guilty in $4.8m ATM Fraud

2010-11-10T21:51:53
ID THREATPOST:6529A865860238D8FFCD953C4D20554F
Type threatpost
Reporter Chris Brook
Modified 2013-04-17T16:35:43

Description

A Connecticut man pleaded guilty to automatic teller machine (ATM) fraud on Tuesday following a scheme that conned $4.8 million from a Rhode Island bank over the last few years.

John DeMilo of Branford, Conn. faces jail time for helping defraud Cranston-based Domestic Bank. Between 2000 and 2010, DeMilo worked for New England Cash Dispensing Systems (NECDS), a firm that had a contract servicing a loose network of Domestic-branded ATM kiosks at convenience stores and other merchant locations.

With NECDS responsible for servicing the machines and supplying part of the funds necessary to do so, and Domestic Bank and merchants responsible for supplying other machines, DeMilo and cohorts systematically shorted Domestic, appropriating Domestic funds to cover NECDS funds when servicing machines, then submitting false reports to the bank to account for the discrepancies. NECDS’s former CEO Joseph Sarlo pled guilty to charges of conspiracy to commit bank fraud in October.

The scheme, which swindled the bank from 2007 to early 2010, could lead to maximum sentences of 30 years in prison.

IDG News Service has more on this story.