According to a complaint filed in a Manhattan federal court, Robert Egan, president of Mount Vernon Money Center (MVMC), has been charged with defrauding Webster Bank.

MVMC had a contract with Webster to stock 162 of the bank's ATMs. Under the deal, Webster would wire the funds needed to replenish cash machines to a Bank of America account to which MVMC had access.

MVMC would collect the cash and take it to its own vault and fill ATM "canisters" before visiting machines and restocking them.

The canisters removed from the ATMs by MVMC employees typically contained "residual cash" that was supposed to be returned to Webster or retained by MVMC for the benefit of the bank.

However, according to prosecutors, in January, on eight separate occasions, "under Egan's direction" MVMC falsely represented that it had returned the cash or was retaining it in its own vault for the benefit of Webster Bank.

"In fact, Egan failed to return over $12 million of Webster Bank's money to Webster Bank, and instead misappropriated the money for use in MVMC's business operations," says a statement.

Prosecutors say Egan admitted to taking the money in a recorded conversation and used it to fund "shortfalls" related to other clients.

US Attorney Preet Bharara, says: "Banks holding the hard-earned deposits of working people entrusted tens of millions of dollars to MVMC and Robert Egan, its president. Egan allegedly abused that trust by using other people's money to prop up his own company."

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