AUSTIN, Texas - The Securities and Exchange Commission has filed an emergency action in United States District Court in Austin to halt what it contends is a fraudulent investment scheme by ATM Alliance Corp. and freeze the company's assets for the benefit of investors.
The SEC charged ATM Alliance, ATM Management Services Corp. and Michael Gilot, who allegedly controls both companies, with securities fraud in connection with an unregistered interstate securities offering involving ATMs.
The complaint alleges that at least $1 million has been raised from several hundred investors nationwide.
The SEC also named Veritas Unlimited, LLC, as a relief defendant, claiming that Veritas received at least $640,000 of investors' funds.
At the request of the SEC, U.S. District Judge Lee Yeakel entered a temporary restraining order halting the offering, freezing the defendants' and relief defendant's assets, and prohibiting the destruction and removal of records.
According to the complaint, the defendants are allegedly soliciting investors through an aggressive marketing campaign in which investors are offered a purported turnkey ATM investment in which they can expect annual returns of between 30 percent and 100 percent. In addition, investors are allegedly told that ATM Alliance has secured highly sought after locations, such as Las Vegas casinos and Citgo convenience stores in which to place ATMs.
The SEC contends that these claims are false and misleading. The complaint further alleges that the defendants are using a fictitious contract to convince investors that ATM Alliance had secured rights to place ATMs at a major Las Vegas casino.
