MANHATTAN, NEW YORK (BNO NEWS) – A man from New York was arrested Monday for a multimillion dollar bank fraud , Preet Bharara, a U.S. Attorney, announced Monday.

Robert Egan, 64, resident of Bedford Corners, New York and president of Mt. Vernon Money Centers (MVMC), was arrested on charges of defrauding Webster Bank out of $12 million in funds, which had been entrusted to MVMC.

Among MVMC’s money services, they performed the refilling of Automated Teller Machines (ATMs) for banks and other entities, as Webster Bank was having MVMC stock 162 of their ATMs.

Webster Bank would transfer the funds needed to replenish their ATMs to a MVMC bank account. They would take this money to their own cash vault to fill other ATM “canisters”, and employees of the money service company would then remove the depleted or partially-depleted canisters from Webster ATMs and replace them with newly filled canisters.

The remaining cash in the removed canisters from the used ATMs was supposed to be returned to Webster Bank, or retained by MVMC for the benefit of Webster, but in eight separate occasions in January 2010, MVMC falsely indicated to Webster Bank that it had reimbursed the cash it had collected from Webster’s ATMs or was retaining the cash in its own facilities for the benefit of Webster Bank.

Egan admitted in a recorded conversation on January 29, 2010 that he failed to return over $12 million of Webster Bank’s money without the bank’s knowledge or authorization. He had embezzled the funds for the own use of MVMC business operations.

Robert Egan is being charged with one count of conspiracy to commit bank fraud, which carries a prison term of up to 30 years and a fine of up to $1,000,000 or twice the gain or loss that results of the crime.

U.S. Attorney Bharara congratulated the FBI for its investigative work as Egan’s case is being handled by the Office’s Complex Frauds Unit.

“This Office remains committed to uncovering and prosecuting large-scale frauds, and we will continue to work with our partners at the FBI to aggressively investigate and punish similar conduct,” Bharara said.