CHICAGO
Two men were indicted by a federal grand jury last month for allegedly intending to defraud ATMs in and around Chicago, officials announced Wednesday.
The ATM settings were altered so more money came out of the machine than what a person requested to withdraw, officials said.
Through the ATM fraud scheme, the defendants, Trent Ratliff and Frederick Lee, got about $185,000, officials said.
The defendants, both of Chicago, were charged in a 10-count indictment. Both defendants were charged with one count of conspiracy to commit computer access fraud as well as separate counts of computer access fraud, corresponding to specific ATM withdrawals.
Ratfliff, 52, and Lee, 60, were arraigned Thursday and were released on bond. The indictment seeks forfeiture of approximately $185,000.
According to the indictment, Ratliff and Lee, using debit cards that were registered in their own names from various banks or using debit cards that were registered in the names of several other individuals, deposited nominal sums of money on these debit cards.
Between September 2010 and January 2011, using these debit cards, Ratliff and Lee accessed the management function of various ATMs in and around Chicago, without authorization from the owners of the ATMs.
They altered the settings so that the ATMs falsely recorded and transmitted debit amounts that exceeded the balance of the debit card accounts.
In many cases, the indictment states that Ratliff and Lee altered the ATM settings so that account debits were recorded and reported by the ATM as one-twentieth of the actual funds that the ATM disbursed.
In other words, a request for $100 from an altered ATM resulted in the disbursement of $2,000.
Following the withdrawal of money from these ATMs, Ratliff and Lee again accessed the management function of the ATMs and changed the settings back so that subsequent account debits from that ATM were recorded and reported as being equal to the actual funds disbursed.
Each count of the indictment carries a maximum penalty of five years in prison and a $250,000 fine.
The defendants are presumed innocent until proven guilty.