News

Investors bilked out of millions in ATM Ponzi scheme

March 13, 2014

Michael Brendan Ferguson, 44, sits in jail in Santa Clara, Calif., in lieu of $1 million bail, accused of stealing millions from investors in his independent ATM distributor business over the course of eight years.

Ferguson's alleged victims — who number more than 100 in San Francisco and elsewhere — sank retirement funds, inheritances and second mortgages into the retail ATM business on the promise of a 15 percent return, the San Jose Mercury News reported.

Described as having "that Ivy League look," Ferguson charmed sums as large as three-quarters of a million out of his alleged marks.

In some cases, Ferguson allegedly sold his ATMs more than once. In other cases, he's accused of having sold ATMs he didn't own at all.

The scheme fell apart when one investor stopped receiving payment checks and started placing calls to shopping malls where "her" machines were located. When she discovered that none of them had heard of Ferguson, she placed a call to the FBI.

Ferguson is currently charged with nine felonies and could face more than 18 years in prison if convicted, the Mercury News said.