- Associated Press - Wednesday, December 17, 2014

LOS ANGELES (AP) - Two Los Angeles men have been charged with running a fraud scheme that costs investors more than $100 million over 15 years.

Federal conspiracy, mail fraud and wire fraud charges were filed Tuesday against 74-year-old Joel Gillis and 76-year-old Edward Wishner.

Prosecutors say the Woodland Hills men ran a company that supposedly operated 30,000 ATMs in hotels, casinos and convenience stores.

Investors allegedly were told they’d reap 20-percent annual returns. But prosecutors say in fact, new investors’ money was used to pay earlier investors - a classic Ponzi scheme.

The men weren’t arrested but they’re expected in court Wednesday.

Attorneys for both men said their clients will cooperate with authorities and want to help reduce investor losses.


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