In 2008, investigators discovered that Goldfinger Coin & Bullion was allegedly operating as a money-transmitter and the owners earned millions of dollars on transaction fees. The company was accused of purporting that customers would have an easy way of investing in precious metals. The online platform allowed users to buy, hold, and transfer silver and gold while converting the earnings to cash. As the value of gold increased, this seemed like a legitimate and profitable investment.
The website allegedly claimed there would be no fees necessary for an account, but the only cost would be when users would convert their holdings into cash. The FBI and IRS claimed that at its peak, the company had roughly $35 million per month funneled through it. A small percentage of that amount resulted from the trading of precious metals.
Federal authorities made an announcement recently stating that they were able to recover nearly $12 million in losses for more than 1,000 victims. This case highlights awareness to get-rich-quick schemes.
The company was shut down in 2008 by the FBI and IRS after co-founder Pamela Fayed was murdered. The other owner, Jim Fayed, allegedly hired and paid the person who killed her, and he is currently on death row in California.
After months of investigations, authorities discovered holdings in Los Angeles and Perth, Australia. The initial amount of $1.8 million was returned to over 300 victims last year. In November, $11.7 million more was returned to victims throughout the United States, Canada, and Australia. Pending repatriation is another $12 million.
If you have been the victim of any kind of Ponzi scheme or fraudulent misconduct, call our firm today. Meyer Wilson is committed to providing investors with counsel when they need to recover their losses. Schedule your free consultation with our securities fraud lawyers today.