SAN DIEGO (CN) – A 72-year-old man who lives in the wealthiest enclave in the nation was sentenced on Monday to 9 years in prison for defrauding investors of $25 million. Richard M. Hersch of Rancho Santa Fe promised 2% to 6% weekly returns from his company, All States ATM, which allegedly kept ATM machines on the “back side” of horse-racing tracks – where the public could not see or use them.
Hersch had no such machines, and he took $25 million from more than 150 investors, federal prosecutors said.
Hersch also was ordered to pay $9.2 million in restitution. He pleaded guilty to mail fraud and conspiring to structure financial transactions.
Rancho Santa Fe, a gated enclave in the hills of northern San Diego County, hosts homes of Bill Gates, the Sultan of Brunei, and others who are not doing quite so well, but are not hurting.