A Rancho Santa Fe man who allegedly promised investors returns of up to 6 percent per week via racetrack-related contracts his company had not secured is facing mail fraud and other charges, prosecutors announced Wednesday.
Richard M. Hersch, 72, is scheduled to be arraigned Thursday in federal court in downtown San Diego.
According to a 15-count indictment, Hersch told investors that his company, All States ATM Inc., had contracts with major horse racing tracks in California and around the country to operate ATMs on the "backside'' area used by employees, horse owners, trainers and others and not accessible to the general public.
Hersch also claimed the contracts his company had with the racetracks allowed him to operate a check-cashing or loan service on the backside track area for the exclusive use of those with access, according to the indictment.
Hersch claimed he had 160 employees and hundreds of ATMs, and that his company was in its eighth year of business.
According to the indictment, the horse racing tracks identified by Hersch had no contracts with him or All States ATM to provide financial services of any sort.
Hersch and others recruited about 100 people to invest about $20 million in All States ATM, according to the indictment.