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Massive Precious Metals Fraud - Gold and silver not in vault as claimed
- Thread starter Martin Everson
- Start date
Yes I do and also Liberty Reserve. Them days were the wild west, but we digress.
https://en.wikipedia.org/wiki/Liberty_Reserve
P.S Nobody involved in this precious metal scam went to jail it seems
.
Nah, these are completely useless.What about crypto backed with gold, is it any better?
Multiple cryptocurrencies are backed by gold, including Tether Gold, DigixGlobal, Paxos Gold, Goldcoin, Perth Mint Gold, and Meth Gold.
The oracle problem cannot be solved. At the end of the day you need to trust the issuer to be for real including every employee there since can never audit if your token is backed.
Maybe there will be redemption issues as well.
Arthur Budovsky! Great guy! Honest AF! Guy delivered like clockwork! Made EVERY banker, politician, and regulator look like the crooks they are, so in retaliation they indicted, convicted, sentenced, and remanded him like the crooks THEY are!
PS. Those were the GOOD old days!
If you don't want to store your own gold then use use a govt. mint like the Perth Mint or Royal Mint; all other options have more risk. I don't see any major advantage to crypto gold like PAX Gold over the Perth Mint (and note that unlike the Perth Mint for PAX you must have at least 400 t.oz in your account to redeem your crypto gold into physical gold in London). Theft from bank safe deposit boxes and private vaults absolutely does happen (do a search on Google)...and good luck trying to get compensation for what has been stolen.
These "scandals" at the Perth Mint are hot air...no one has lost money or been scammed or cheated or whatever. The so called "doped" gold to China was by all accounts 9999+ and the Chinese themselves have not complained.
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100% this! In general, the people who are usually the most revered by the masses are the worst humans. Bernie was at one-time chairman of the Nasdaq stock exchange
100% this! In general, the people who are usually the most revered by the masses are the worst humans. Bernie was at one-time chairman of the Nasdaq stock exchange
As a general Rule.. the higher the position they achieve the more corrupted they are "Chairman of the Nasdaq Stock Exchange"
If it is not a private owner the government will be stealing it from you!
Reminds me of big chinese companies getting these massiv big loans with fake gold as collaterals----- quote start
July 03, 2023
Today, the Commodity Futures Trading Commission (CFTC or Commission) filed a Consent Order for Permanent Injunction, Civil Monetary Penalty, and Other Equitable Relief Against Settling Defendants in the U.S. District Court for the District of Delaware against First State Depository Company, LLC (FSD) and Argent Asset Group LLC (Argent, and together with FSD, Settling Defendants), resolving an action initially filed on September 27, 2022, charging the Settling Defendants and their owner, Robert Leroy Higgins (together with the Settling Defendants, Defendants), with engaging in a fraudulent and deceptive scheme in connection with the purchase and sale of precious metals.[1] The CFTC’s complaint alleged that the Defendants operated fraudulent silver leasing programs referred to as the “Maximus Program” and the “Silver Lease Program,” through which they fraudulently solicited and misappropriated at least $7 million in funds and silver from at least 200 customers. FSD purported to be a “private depository” that would store customer metals. Argent was engaged in the business of buying, selling, and leasing precious metals.
Following the filing of the complaint, the investigation of the Court-appointed receiver revealed the full scope of the Defendants’ fraud—as much as $112.7 million in assets were missing from FSD, including over 500,000 American Silver Eagle Coins. Defendants deceived customers by suggesting that they were holding the coins on behalf of customers. Over 9,000 gold coins were also missing from customer accounts. According to the receiver, a majority of the assets that were supposed to be held at FSD were missing. The receiver found that Defendants brazenly left “IOU” slips in empty boxes marked to indicate a customer’s account, yet containing no assets. This kind of egregious behavior merits the full weight of the Commission’s enforcement authority.
The active efforts to conceal misappropriation by sending fake account statements indicating that Defendants had carefully stored and accounted for customer assets, and offering false and misleading excuses for why assets could not be withdrawn represents the very type of fraud Congress expressly intended to prevent when it enacted the Commodity Exchange Act. The CFTC has initiated many actions against fraudsters seeking to bilk hard-working Americans out of their hard-earned dollars by aggressively marketing precious metals, often at an excessive mark-up, while charging exorbitant storage and other fees.[2] This case is deeply troubling; Settling Defendants simply stole customer money or metals, without even a veneer of legality. Accordingly, the Consent Order requires the Settling Defendants to pay restitution of $112.7 million, as well as a civil monetary penalty of $33 million and permanent trading and registration bans.
While these sums are large, they are justified. Our enforcement efforts must be sufficiently calibrated to deter fraudsters from targeting vulnerable investors. There can be no mistake; we are committed to policing markets, identifying and investigating fraud, and protecting vulnerable customers from such conduct.
I thank the Division of Enforcement staff for their efforts in bringing this case, including Erica Bodin, Brian Hunt, Michael Loconte, and Rick Glaser, as well as former employee Michael Solinsky.
--- quote end
https://www.cftc.gov/PressRoom/SpeechesTestimony/johnsonstatement070323
Makes you wonder how many other precious metals scams are out there from companies pushing you to invest in metals.
Sadly every year there are scandals in the gold market - recently Red Rock Secured, before that Regal Assets, metals.com etc - all big names until they aren't.
It's either straightforward scamming and stealing like Regal Assets or using dark/blood gold like OPM - which was a huge surprise for many when they got caught.
Always take delivery. Always.
It's either straightforward scamming and stealing like Regal Assets or using dark/blood gold like OPM - which was a huge surprise for many when they got caught.
Always take delivery. Always.
Crypto backed with gold is just packing dubious counterparty risk on counterparty risk. The issuers of the crypto can rug pull, the peg can break, the holders of the gold can disappear. The gold can be tungsten, or paper gold relying on yet another counterparty.
Not your vault, not your gold.
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