Trumbull man admits role in $4.8 million bank fraud in Connecticutt

A Trumbull man who ran an automated teller machine dispensing company admitted last week to being involved in a fraudulent scheme that cost Domestic Bank of Cranston, R.I. $4.8 million.Joseph Sarlo, 54, of Trumbull, pleaded guilty to conspiring to commit bank fraud during proceedings before U.S. Magistrate Judge Joan G. Margolis. He faces up to 30 years in prison when he is sentenced Jan. 3.Sarlo served as chief executive officer of New England Cash Dispensing Systems, Inc. As part of a contract with Domestic Bank, Sarlo's company provided automated teller machines bearing the bank's logo in convenience stores and gas stations throughout the northeast. Under the terms of the agreement, Domestic would provide the cash to be used inside the machines to only some of them. Sarlo's firm and the merchants where the machines were located would provide the money to other machines.However, Sarlo admitted that from 2007 to February, 2010, he and others would order money in increments of $10,000, $6,000 and $4,000 from Domestic claiming it was being loaded into the bank's machines. The conspirators loaded the money into machines of New England Cash Dispensing and then provided the bank with a false accounting of the money.The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Paul Murphy.