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| Above, a 2023 American Silver Eagle. Photo by Armand Vaquer. |
It is too bad that there are crooked people out there, even within the coin and bullion investing industry.
A silver dealer was recently fined $146 million for defrauding investors on American Silver Eagle coins that mysteriously vanished from the dealer's vaults. This involved two companies this particular dealer ran.
According to Yahoo! Finance:
Hundreds of depositors who handed millions to a silver dealer in exchange for precious minted coins were told their vaults were actually empty following an investigation by the U.S. Commodity Futures Trading Commission (CFTC).
Two firms run by precious metals dealer Robert Higgins have been ordered to pay out $112.7 million to the victims of an alleged complex fraudulent scheme, and $33 million in a civil monetary penalty.
The investigation into Higgins and two connected companies began last year.
According to a statement from the CFTC, between 2014 and 2022 Higgins conducted a fraudulent silver leasing scheme via two companies: Argent Asset Group LLC (Argent) and First State Depository Company, LLC.
The scheme
The plot, sold to customers as the 'Maximus Program', offered to pay owners of silver coins a lease fee in exchange for Argent's use of the commodity.
The payments were on a "scale" and would increase or decrease depending on how many of their coins the client was willing to offer.
The coins were either already owned by the customers, or could supposedly be purchased through Argent, and were apparently in storage at a vault owned by First State Depository Company in Delaware.
Customers were also told their investments were guaranteed and fully insured.
Coins such as these—silver American Eagle dollars—are often purchased by investors who want to see something tangible for their money, as opposed to government bonds or stocks.
To read more, go here.
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