Local News

Missing passport keeps Ponzi suspect behind bars

Posted September 22, 2009

Map Marker  Find News Near Me

— A Raleigh man charged in an $80 million scheme to defraud people investing in automated teller machines remained in custody Tuesday because he couldn't locate his passport.

Vance Moore II, 55, was arrested Friday in Garner, and federal authorities agreed Tuesday to release him on a $5 million bond – if he surrenders his passport.

Authorities consider Moore a flight risk and want the passport to ensure he doesn't flee the country. Moore told a federal magistrate that he doesn't know whether the passport is in his home in Florida or his home in Raleigh.

The magistrate gave Moore's attorneys until 2 p.m. Tuesday to check both residences for the passport, but when he couldn't produce the passport, he was ordered to remain in custody.

A second man charged in the case, Walter Netschi, 62, of McKinney, Texas, surrendered Monday to federal authorities in New York and was released on a $3 million bond, authorities said.

Both men are charged with nine counts of wire fraud and one count of conspiracy to commit wire fraud.

Authorities said they solicited money from investors from 2005 to January 2008 by claiming they were placing about 4,000 ATMs in retail locations throughout the country. They told prospective investors that the machines would generate revenue streams by charging fees for withdrawals. About 90 percent of the machines didn't exist or were never owned by Moore and Netschi, authorities said.

The men used some money from new investors to provide returns to earlier investors, while keeping the bulk of the money for themselves, authorities said.

9 Comments

This story is closed for comments.

Oldest First
View all
  • lizard Sep 22, 2009

    ncsudan -

    you need to go back to Johnson and his war on poverty, that's when raiding social security was ramped up. It is a Ponzi scheme though. One forced by the gov't. It was not designed to be a retirement system. Wait til you start collecting - if it's still there. You'll find out.

  • brewmonkey Sep 22, 2009

    that's a pretty misleading headline. makes it sound like you need a passport to get in and out of garner.

    of course, now that i think about it, that does make a lot of sense...

  • Ol Forrester Sep 22, 2009

    I'm betting they skip to Venezuela and we find out they had more millions stashed in offshore accounts.

  • ncsudan Sep 22, 2009

    Ummm... Feel free to donate you SS checks to those in need if you don't want them. But paying into a system and then getting money back out is not a Ponzi scheme. Its called a retirement plan. Now if you want to point fingers, go back to Ronny, etc. when they started raiding the SS trustfund and leaving trillion dollar IOUs in it. That is when the system really got into trouble.

  • jse830fcnawa030klgmvnnaw+ Sep 22, 2009

    If you are arrested on a financial Ponzi scheme, do you acquire the bail money with another Ponzi scheme? How do you otherwise come up with $3-5 million dollars for bail?

  • Mommyoftwo Sep 22, 2009

    I wonder where his passport is?? Maybe it's in one of those ATM machines that is non-existent?

  • affirmativediversity Sep 22, 2009

    Arrest Congress for Social Security...BAH...they are already working on Ponzi Scheme Part II...its called CAP AND TAX.

    Its perfect...they get to sell imaginary credits to companies while taxing everyone for using these imaginary credits AND, this is the best part...they give the money to AL GORE and all his friends...

    Sounds wonderful doesn't...everyone will be so enlightened..once they give up and go along quietly that is.

  • whatelseisnew Sep 22, 2009

    "When is the entire congress going to get arrested for allowing the Ponzi scheme that is Social Security?"

    I don't know, but I wish it would happen soon.

  • timothycapwell Sep 22, 2009

    When is the entire congress going to get arrested for allowing the Ponzi scheme that is Social Security?