County Joins Attorney General To Warn Consumers About ATM Investment Scams

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Contact: Sue Tucker, 240-777-6530 or
Myriam Torrico, 240-777-3627

For Immediate Release: March 12, 2001

County Joins Attorney General to
Warn Consumers About ATM Investment Scams

County Executive Douglas M. Duncan today joined Attorney General J. Joseph Curran, Jr. to warn residents to carefully and thoroughly investigate any business ventures or investment opportunities before relinquishing their money. This warning was issued as the result of an alleged fraudulent investment program in which more than 130 area residents invested large amounts of money in an automatic teller machines (ATM) investment scheme.

The Securities Division of the State of Maryland Office of the Attorney General recently filed a complaint against a company, charging it with violating Maryland securities laws by raising millions of investor dollars with promises of a virtually risk free, guaranteed investment. According to the complaint, Bankcard Group, Inc. (BGI) operated an unregistered and fraudulent ATM program. The complaint alleges that BGI raised as much as $3 million from investors in the Washington metropolitan area.

"The actions taken by the Attorney General's Office send a clear message to anyone who thinks they can take advantage of our citizens - particularly those who are struggling to overcome language barriers and are reluctant to report complaints," said Duncan. "We do not tolerate fraudulent business practices here in Montgomery County, and we want to ensure that our residents are not scammed of their hard earned money."

The County's Department of Housing & Community Affairs (DHCA) has been instrumental in assisting more than 20 Spanish-speaking victims who collectively paid more than $500,000 to this company and did not receive income as promised. Although the County's Consumer Affairs Division does not have legal jurisdiction regarding business investments, DHCA's Manager of the Hispanic/Latino Initiative has been helpful in facilitating communication and providing assistance.

"We want the Hispanic community and all residents of Montgomery County to know that they can contact us to seek information before and after making an investment of this type," said Elizabeth Davison, Executive Director of DHCA.

The officers of this investment program, without admitting or denying a violation of the Securities Act, have entered into a Consent Order with the State of Maryland and have agreed to a permanent injunction, freezing all assets, and providing restitution. A determination regarding criminal prosecution has not yet been made.

"The Office of the Attorney General will continue to aggressively investigate and prosecute those persons or entities who violate Maryland's securities laws, and we very much look forward to working with County Executive Duncan and Montgomery County's consumer advocates to protect citizens from becoming victims of investment and all other kinds of scams," said Curran.

The Department of Housing and Community Affairs offers the following tips to consumers, particularly to non-English speaking residents:

1. Never sign a contract written in a language that you do not understand.

2. Do not be pressured into any sales agreement. Make sure all the terms of the agreement are understood and written into the contract.

3. Check out any merchant prior to doing business. Do not assume a merchant is reputable because they can communicate in your language.

Always check out the merchant's complaint record by calling the County's Consumer Affairs office at 240-777-3636 or the Better Business Bureau at 202-893-8000. Consumers should also call the Securities Division of the Attorney General's Office at 410-576-6360 to find out if an investment adviser is, or should be, registered.

Members of the Spanish-speaking community are encouraged to report any consumer complaints to Myriam Torrico, the Hispanic liaison in the Department of Housing and Community Affairs at 240-777-3627.

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