NEW YORK – The two top executives of an ATM servicer and cash carrier on Wednesday were indicted on charges they stole $50 million from their credit union and bank customers.
A federal grand jury in Manhattan charged Robert Egan, 64, of Bedford, and Bernard McGarry, 50, of Yonkers with manipulating millions of dollars paid to them from customers including Actors FCU, ADP FCU, Bank of America and Webster Bank. The men allegedly used the money to pay bills for the company and for personal expenses, co-mingling clients' funds when they were supposed to be kept in individual accounts.
The FBI on Feb. 13 seized Mount Vernon Money Centers and 88 vehicles, including armored trucks, and $20 million of cash in its vaults. A receiver has been appointed to liquidate the company.
The company serviced 5,300 ATMs in metropolitan New York and provided cash carrying and payroll services. Federal prosecutors accuse Egan and McGarry of "playing the float" to cover their thefts. The company should have had between $70 million and $75 million in its vaults last month when it actually only had between $20 million and $25 million, authorities said.
The company received tens of millions of dollars in cash or through wire transfers every week, which it used to obtain cash to replenish ATMs.
Mount Vernon Money Centers operated several cash management businesses. One subsidiary, called Armored Money Services, provided armored car services to credit unions and banks. It also owns 600 ATMs under the NowCash brand.
