Alaska alleges ‘widespread fraud’ by ATM business serving rural villages and small businesses

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The state is accusing a man of pocketing money that belonged to ATM owners.

The state of Alaska has joined more than a dozen civil lawsuits alleging “widespread fraud” by the owner of an ATM business that serves Alaska Native village corporations and other small businesses.filed Wednesday in Anchorage Superior Court, the state accuses a man named James Dainis of fraud, civil conspiracy and violating the state’s consumer protection laws by pocketing money that belonged to ATM owners.

“This sad case highlights the incredible amount of damage that an unscrupulous person in the financial industry can cause,” said Attorney General Treg Taylor in a written statement announcing the lawsuit. “The Department of Law is committed to bringing bad actors to justice, but we also encourage small businesses to be careful who they do business with, and to regularly audit their financials.”

The state is also accusing Dainis of defrauding partners that he sold business interests to. In one case, he allegedly sold contractual rights to 307 ATMs. Those rights didn’t exist, the state said, and he then failed to execute the deal. Court documents filed by the state and other plaintiffs explain how they believe the alleged fraud worked.

A 2017 lawsuit filed by Qemirtalek Coast Corporation of Kongiganak in Southwest Alaska is similar to many of those cases. But since then, court records show that QCC hasn’t been able to collect, and earlier this month, a state judge issued a show-cause order requiring Dainis to explain why he hasn’t complied with the judgment.

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