Austin Business Journal: The SEC claims ATM Alliance, which started selling ATMs and ATM locations late last year, was running a fraudulent investment scheme that bilked more than $1 million from investors across the country, according to court documents.
At the SEC's request, U.S. District Judge Lee Yeakel in Austin, Texas, issued a temporary restraining order against ATM Alliance, which froze the company's assets, prohibited it from offering the machines and prohibited employees from removing and destroying company documents.
The SEC's civil suit, filed earlier this month, charges ATM Alliance Corp., ATM Management Services Corp. and CEO Michael Gilot with securities fraud.
SEC officials contend that ATM Alliance has not placed ATMs in the locations promised to investors and that investors are not receiving their promised returns. Many have received nothing at all, the suit states.
Gilot said in a statement that he and his companies deny any wrongdoing, and are cooperating with SEC investigators.
"We value each and every client, and are working daily to meet the expectations and promises to our existing customers," he says. "We're confident the alleged complaints ... will be found unsubstantiated and unjustified. In the end, all interested parties will be vindicated."
Read also: SEC halts activities of ATM Alliance, alleges securities fraud
