STRATEGIC PARTNERS
January 31, 2002
The Maryland attorney general has frozen the assets of a Baltimore-area firm it says ripped off investors by promising risk-free investments in ATMs.
The Washington Post reported that attorney general J. Joseph Curran Jr. filed a complaint that Bankcard Group Inc. sold investments in or ownership of ATMs and promised investors monthly payments from ATM surcharge fees, and then failed to deliver.
Maryland law enforcement officers took over the company's offices in Largo, Md. Jan. 31. Andrew H. Williams, Bankcard's chief executive, told the Post the allegations were "absolutely false" and that he planned to fight the charges in court. The complaint said the company raised at least $3 million from 130 investors.
A former employee of Bankcard Group, Kim Combs, said she left the company early last year after Bankcard failed to deliver machines valued at $114,000 she had sold to customers. Combs, who now operates her own ATM sales firm, Swipe Solution's Enterprises of Baltimore, said there were many investors who purchased ATM machines that were never delivered.
According to the attorney general's complaint, only 44 of 200 ATMs sold by the company have been delivered.
Combs, in documents provided to the Maryland authorities, claimed the company was selling "used" machines at new machines prices, without the knowledge of the buyers of the machines. A document provided by Combs showed that Bankcard guaranteed buyers of the machines 500 transactions per month at 50 cents each, or $250.
