United States v. Folad, No. 17-5538 (6th Cir. 2017)Annotate this Case
Individuals reprogrammed ATMs to dispense $20 bills for each $1 they were supposed to dispense. Requesting $40 at a compromised ATM would deliver 40 $20 bills instead of two. More than $600,000 was taken from ATMs owned by SafeCash Systems. SafeCash investigated and found evidence that a former employee who serviced the machines, Folad, and his friend, Fattah, engineered the scheme. They turned the information over to the government, resulting in several criminal convictions, one-year sentences for Folad and Fattah, and a restitution order. After the scheme ended and after SafeCash determined what had happened, SafeCash replaced 17 of the relevant 18 ATMs in response to a federal regulation requiring that they be accessible to individuals with sight impairments. The Sixth Circuit affirmed the convictions and sentences, rejecting an argument that destruction of the ATMs amounted to the destruction of potentially exculpatory evidence and violated the defendants’ due process rights. SafeCash, not the government, made the decision to replace the machines. Even if the government had been involved in the destruction of the machines, there was no indication that they contained potentially exculpatory evidence.