Owners of Delray ATM business convicted of fraud

WEST PALM BEACH — Two South Florida businessmen have been found guilty of fraud in connection with a business opportunity scam that took victims for $4.2 million.

A federal jury found Andrew Steinberg, 39, of West Palm Beach, was found guilty of one count of conspiracy five counts of mail fraud, and four counts of wire fraud. Stephen Duffie, 32, of Miramar, was found guilty of one count of conspiracy and one count of mail fraud. Each offense carries a maximum of 20 years in prison, fine and restitution.

Both men are scheduled to be sentenced on February 12 by federal court Judge Kenneth A. Marra.

Steinberg and Duffie operated Fidelity ATM, which operated out of offices in Boynton Beach and Delray Beach from 2004 to 2006. The business closed in November 2006 after the Federal Trade Commission filed suit.

Fidelity ATM sold a $30,000 “package” that was supposed to include three ATMs placed in high-traffic locations, plus ongoing customer service. However, as shown during trial, Steinberg and Duffie misrepresented likely profits, misrepresented the location services that Fidelity ATM would provide, and used fake references.

In fact, evidence showed that Steinberg and Duffie arranged for employees and friends to pose as successful Fidelity ATM customers during sales calls with future prospective buyers. The fake references used prepaid cell phones that Fidelity ATM bought in the names, and with the real area codes, of genuine customers.


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DECEMBER 5, 2009 click to go home
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