Hersch pleads guilty in fraud scheme

A Rancho Santa Fe man pleaded guilty Monday to mail fraud and conspiracy to structure financial transactions.

Richard M. Hersch entered a plea deal where he now faces a maximum term of 25 years in prison and must pay at least $9.2 million in restitution.

Hersch admitted that he operated an investment scheme in which he recruited investors by promising returns of 2 percent to 6 percent per week on investments into his company, All States ATM Inc., according to an FBI press release.

The FBI said Hersch told investors that his company had contracts with major horseracing tracks in California and around the country to operate his ATMs on the backside of the track. He also claimed to have a check cashing or loan service contracts for exclusive use of those with access to the backside.

The horseracing tracks identified by Hersch told the FBI that they have no contracts with him or All States ATM to provide financial services of any sort.

Hersch and others recruited more than 150 investors to invest approximately $25 million. He also admitted, during his plea, that he conspired with others to structure 15 transactions, totaling $141,500, for the purpose of evading the currency reporting requirements. Hersch and those working with him withdrew currency from a Wells Fargo Banks Account in amounts between $9,000 and $9,500, because they knew that cash withdrawals that are more than $10,000 trigger currency-reporting requirements.

Hersch is scheduled to be sentenced on Feb. 8, 2010, before Judge John A. Houston in the U.S. District Court in San Diego.

Related posts:

  1. Local man faces fraud charges
  2. Two arrested in $1.2M fraud scheme
  3. Indictment details massive mortgage fraud scheme
  4. Man pleads not guilty in dog beating case
  5. Babysitter accused of selling child pleads guilty

Short URL: http://www.delmartimes.net/?p=4172

Posted by on Nov 19, 2009. Filed under Archives. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Archives

Facebook

Bottom Buttons 1

Bottom Buttons 2

Bottom Buttons 3

Bottom Buttons 4

Bottom Buttons 5

Bottom Buttons 6

LA JOLLA NEWS

RANCHO SANTA FE NEWS

RANCHO SANTA FE NEWS

RSS RANCHO SANTA FE NEWS

  • Rancho Santa Fe resident among seven new trustees joining UC San Diego Foundation Board
    Proactive stewards, higher education advocates and expert financial strategists, UC San Diego Foundation trustees play an important role in cultivating community partnerships and garnering resources to support UC San Diego research, teaching and public service initiatives. Trustees govern the Foundation, including managing net assets totaling $717 million, i […]
  • Rancho Fire District to recognize Fire Prevention Week with two events
    National Fire Prevention Week is Oct. 5-11, and the Rancho Santa Fe Fire Protection District (RSFFPD) will host two community events to recognize the annual awareness campaign. The first will be an Open House from 9 a.m. to noon on Saturday, Oct. 4 at RSF Fire Station 2, 16930 Four Gee Road in 4S Ranch. Guests will be able to tour the fire station and traini […]
  • New Rancho Santa Fe Library Branch Manager welcomes community input
    Rancho Santa Fe Library’s new Branch Manager Haley Kwon has been charmed by the village’s “sweet, down-home” character, the simple pleasure of visiting the local library and people’s enjoyment of a slower speed of time. “It’s a small town and the library is a place for people to connect,” Kwon said. “People have a different sense of time here, they come in t […]