Newport Man Arrested in $1-Million ATM Scam
A Newport Beach man with prior fraud convictions was arrested Friday on suspicion of 21 counts of swindling people who thought they were investing in automated teller machines, state securities regulators said.
Philip Gardner, 73, sold more than $1 million in investments through the ATM Store by promising returns of 40% to 100%, said Demetrios A. Boutris, commissioner of the state Department of Corporations.
The ATMs were not purchased or placed as promised, and most victims lost all their investment, Boutris said. Gardner is accused of spending the money on himself.
Authorities said Gardner’s record of securities law violations goes back nearly 30 years. In a 1988 Los Angeles County case, he was charged with 28 counts of fraudulent sales of wind farm and gold mine investments. Boutris said Gardner pleaded guilty to seven felony counts and spent four years in jail in that case.
The latest case originated in Riverside County, where Gardner will be tried. Gardner couldn’t be reached for comment and hadn’t yet hired an attorney, Boutris spokesman Andre Pineda said.
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