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Massive Precious Metals Fraud - Gold and silver not in vault as claimed

#22
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#23
Don said:
What about crypto backed with gold, is it any better? :rolleyes:
Multiple cryptocurrencies are backed by gold, including Tether Gold, DigixGlobal, Paxos Gold, Goldcoin, Perth Mint Gold, and Meth Gold.
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Nah, these are completely useless.
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.
 
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#25
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.

Martin Everson said:
Really? Wouldn't trust them at all after this behavior....

www.abc.net.au

The $9 billion dirty secret of an Australian gold icon

In a bid to save money, the world's largest processor of newly mined gold started "doping" its bullion. Then its customers started asking questions.
www.abc.net.au www.abc.net.au

www.reuters.com

Australia's Perth Mint faces federal inquiry over gold 'doping' -ABC News

The Perth Mint faces a federal parliament inquiry over allegations of having sold "doped" gold to China, the Australian Broadcasting Company (ABC) News said in a report on Thursday.
www.reuters.com www.reuters.com
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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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#30
Bernie made fortunes for others and thrived thanks to those who were happy to close an eye or two. He was not the evil. If you were so naive to invest in a fund with such an equity line, you deserved to be scammed.
 
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#31
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#32
Martin Everson said:
----- 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

www.cftc.gov

Statement of Commissioner Kristin N. Johnson Regarding CFTC Settlement with First State Depository Company, LLC and Argent Asset Group LLC for Precious Metals Fraud | CFTC

www.cftc.gov www.cftc.gov

Makes you wonder how many other precious metals scams are out there from companies pushing you to invest in metals ca#"!.
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Reminds me of big chinese companies getting these massiv big loans with fake gold as collaterals :D
 
#33
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.
 
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#34
Au999 said:
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.
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Would the Swiss be more trustworthy?
 
#37
latindev said:
Like with any other financial instrument, the important part is the issuer. If you trust those issuers then it's ok but you always need to make sure the issuer is legit... Plus, I don't trust tokenized gold because they don't charge any fee and that doesn't make sense in my opinion.


It's just another financial instrument that someone can use,
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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.
 
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