Fraudulent Scheme: Precious Metals Companies Accused of Misappropriation
A US court has ruled that two precious metals companies must pay a staggering sum of almost $146 million in restitution after more than 500,000 American Silver Eagle coins vanished, leaving investors empty-handed. The companies, Argent Asset Group and First State Depository Company, along with their owner Robert Higgins, have been accused of orchestrating a fraudulent and deceptive scheme by falsely claiming to store the coins on behalf of customers.
Vanished Coins: Investigative Discoveries Unveil Absence of Assets
During investigations into the companies’ alleged storage facilities, it became evident that the coins, which were supposed to be securely held in vaults, were nowhere to be found. As a result, the court settlement demanded that Argent Asset Group and First State Depository Company, both owned by Higgins, make restitutions of $112.7 million and pay an additional penalty of $33 million.
Unveiling Fraudulent Practices: CFTC’s Findings
The Commodity Futures Trading Commission (CFTC), a US financial watchdog, accused Higgins’ companies of operating “fraudulent silver leasing programs” between 2014 and 2022. These schemes, known as the Maximus Program and the Silver Lease Program, allegedly involved soliciting and misappropriating funds and silver from at least 200 customers, amounting to a sum of at least $7 million. The CFTC further asserted that the companies provided false and misleading explanations for their failure to facilitate asset withdrawals.
Discovered Discrepancies: Missing Coins and Empty Boxes
Investigators discovered substantial discrepancies in customers’ accounts, with over 500,000 American Silver Eagle coins and more than 9,000 gold coins reported missing. Instead of the promised assets, investigators found empty boxes containing slips marked as “IOUs” that were intended to represent customers’ accounts. The companies had resorted to deceptive practices, raising concerns and prompting the CFTC to highlight the need for stringent enforcement measures.
No Immediate Response: Mr Higgins Remains Silent
Despite the court ruling, Mr. Robert Higgins, the owner of the implicated companies, has yet to respond to the BBC’s request for comment. The weight and purity of American Silver Eagle coins are guaranteed by the US government, with each coin containing a minimum of one troy ounce (31.1g) of 99.9% pure silver, as stated by the United States Mint.
SOURCE: Ref Image from metals mine
Whether writing about complex technical topics or breaking news stories, my writing is always clear, concise, and engaging. My dedication to my craft and passion for storytelling have earned me a reputation as a highly respected article writer.