50 oz of SAE's stolen by Bullion Direct

[cpy911]

I have used BD for years and years. I had 50 oz of SAE's that I had slowly purchased over some time and was going to do a product draw when I got more. Well, I got caught. They just went bankrupt. I will never see those 50 SAE's.

This gives new meaning to: If you can't stand in front of it, and protect it with an assault rifle, you don't own it.

I hope nobody else got caught. Easy come easy go.

I hope to file a loss on my taxes to help reduce my income tax burden. Do I need to file a police report?

Regards.

Justin

[midnight rambler]

Yes, you do need a police report.

[crimethink]

Do I need to file a police report?

For what? "It's a civil matter." Make a claim in the Bankruptcy Court as a creditor. No guarantee you'll get anything, but you can try.

[midnight rambler]

http://about.ag/BullionDirect.htm

[cpy911]

I want to file it as a capital loss with my taxes.


For what? "It's a civil matter." Make a claim in the Bankruptcy Court as a creditor. No guarantee you'll get anything, but you can try.

[ximmy]

Looks like it is chapter 11 so you could still get some of your gold back if they are able to restructure.

But it is hard to feel sorry for someone who should have known better... :(

BTW... sorry for your loss. :'(

[midnight rambler]

For what? "It's a civil matter." Make a claim in the Bankruptcy Court as a creditor. No guarantee you'll get anything, but you can try.

A few years ago I did a BIN on a couple of one oz. Phillies on feebay (that's right, a 'too good' price lol). Seller had a good FB score and had been on feebay for years however seller failed to deliver my Phillies. Notified feebay of failure to deliver, someone at feebay contacted the local PD where seller was located (El Paso) and ultimately I was interviewed via phone by a nice lady detective with the El Paso PD. Dunno if they every caught up with the seller, but feebay did put the po-po onto the seller. And of course feebay refunded 100% of my money.

[crimethink]

For anyone who lost "their" ass(ets) with BullionDirect, the Chapter 11 Federal Bankruptcy Case # is 15-10940-tmd, US Bankruptcy Court, Western Division of Texas, Austin Division, proof of claim as a creditor deadline is November 23, 2015. Meeting of Creditors is on August 25, 2015, at 1:00pm. Actual notices linked here:

http://about.ag/BullionDirect.htm

http://www.txwb.uscourts.gov/

United States Trustee is:

Henry Hobbs/Valerie Wenger
Office of the United States Trustee
903 San Jacinto Blvd., Suite 230
Austin, TX 78701

[expat4ever]

Amazing how they went down hill so quickly. Back in Feb I ordered and received everything I ordered. I also had metal I had stored with them shipped home.
You have to wonder how they got in the hole so quickly.
Sorry for your loss cpy. Noone saw it coming I am sure. I have done business with them for 7+ years so when things are going well you just dont expect something like this to happen.
My guess is they kept buying metal and kept having to sell it at a loss as prices declined over the last few years.

[crimethink]

I want to file it as a capital loss with my taxes.

No need to contact the cops, since it's not an "illegal" crime. I just posted the Chapter 11 details relevant to you. Cite/submit the Chapter 11 filing and BD records of "your" lost assets.

[gunDriller]

i went to their website and tried putting a one ounce gold Eagle in the cart.

it let me do that, but when i went to check out i got this message -

"Catalog orders are not being accepted at the moment, please try again later."


"In it, it shows that the debt is more than $10M (perhaps as great as $25M). It shows that there are about 50 known creditors, and as many as 6,000 claimants (suggesting about 6,000 customers with metal stored at Bullion Direct)."

it does make me a little worried about using just one metal dealer - i guess it is
better to "spread it around."


i'm sorry they went under - and took some of your metal with them.

i would like to get the gritty details about Why & How.


i wonder if there is still metal in their vault.

[cpy911]

Ok. So I will claim about $900 as a loss (will help with my tax burden) and file the Ch. 11 stuff with my tax records and call it a lesson learned.
Now to check my AR-15, and load a few magazines to make sure everything is in working order.


No need to contact the cops, since it's not an "illegal" crime. I just posted the Chapter 11 details relevant to you. Cite/submit the Chapter 11 filing and BD records of "your" lost assets.

[crimethink]

Ok. So I will claim about $900 as a loss (will help with my tax burden) and file the Ch. 11 stuff with my tax records and call it a lesson learned.
Now to check my AR-15, and load a few magazines to make sure it is in working order.

Absolutely file a proof of claim with the Court. I am not adequately familiar with Chapter 11 proceedings, and the BD deposit contract, specifically, if you are a "secured creditor," or not, but if you are, you could theoretically recover the metal. Not worth it to talk to a shyster, but definitely familiarize yourself with Chapter 11 basics, such as:

http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics

BTW, if there are any criminal doings involved, the United States Trustee will refer to the United States Attorney. If the metal is "gone," either never purchased or liquidated for personal gain, the BD team is f**ked. If transferred "too soon" prior to the Chapter 11 filing, the purchasers/recipients may have to give it back as "Avoidable Transfer" (a form of claw-back).

[cpy911]

Based on the forums and communications it is best to wait to file until the creditor's meeting. See
http://forums.bulliondealerdata.com/post/proof-of-claim-deadline-november-23-2015-7512730

Here is one of the posts, it makes sense.

"August 25 is the Creditor's Meeting, at which Bullion Direct (likely the new Director) will need to answer a lot of questions under oath. They may also choose to give customers an idea of what is going on before that (which makes sense -- why not let customers know ahead of time, so there are no surprises?). For the Tulving Creditor's Meetings, there were attorneys there that passed information on to me. If I do not get information from someone at the Creditor's Meeting, I might need to wait perhaps a week or two to get a copy of the recording of the meeting.

Charles may or may not have sold the business (the ownership information is private), but he is no longer one of the Directors, and the new Director is working on restructuring the business.

By that point, we should have a much clearer idea of both [1] how much money customers might be expected to get (which may vary; e.g. stored metal versus pending catalog orders), and [2] what customers need to do (if anything)."



Absolutely file a proof of claim with the Court. I am not adequately familiar with Chapter 11 proceedings, and the BD deposit contract, specifically, if you are a "secured creditor," or not, but if you are, you could theoretically recover the metal. Not worth it to talk to a shyster, but definitely familiarize yourself with Chapter 11 basics, such as:

http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics

[crimethink]

Based on the forums and communications it is best to wait to file until the creditor's meeting. See
http://forums.bulliondealerdata.com/post/proof-of-claim-deadline-november-23-2015-7512730

I disagree. File as soon as you are able. Attendance at the 341 Meeting is optional, and probably not cost-effective for you. Non-attendance does not diminish your necessary rights, if you file the Proof of Claim. BullionDirect may or may not be forthcoming, or capable of being forthcoming, if records were "lost," regarding customers and "their" holdings. A Jewish lawyer is now "in charge" of the shell of BullionDirect, so it's going to be interesting to see how this all plays out.

Some of the folks on that forum are "confused." One thinks "Texas law" applies to this - essentially, no, it doesn't - 11 USC does. Another talks about whether BD is treating customers as creditors - doesn't matter, 11 USC determines that. Others are complaining, understandably, that BD isn't being forthcoming - they don't "legally" have to be, except to the Court, the US Trustee, and at the 341 Meeting!

One helpful member of that forum posted this, the e-filing page for a Proof of Claim. It's easy - you can do it without a lawyer.

http://www.txwb.uscourts.gov/POC/online_poc.html

If you want to file paper, this is the form:

http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK_Forms_Current/B_010.pdf

Nolo page on Chapter 11 for creditors:

http://www.nolo.com/legal-encyclopedia/bankrupt-customer-pursue-payment-29574.html

[monty]

I don't know if this would be applicable or not, Protecting yourself as a secured creditor:

http://www.schnader.com/files/Publication/28e2b7e4-a1e1-482f-9108-e7f02c587421/Presentation/PublicationAttachment/d3128305-b9b7-448d-af18-0b2502a9809e/Fischer%20UCC%20Article_01-2012.pdf

[cpy911]

If I ever get my money/coins back, I say screw PM's and buy a bunch of this http://www.ammoman.com/556x45mm-federal-xm193-lake-city-55-grain-500

[Jewboo]

I have used BD for years and years. I had 50 oz of SAE's that I had slowly purchased over some time and was going to do a product draw when I got more. Well, I got caught. They just went bankrupt. I will never see those 50 SAE's.



Being a GSUS member for over five years, you must have known about and understood Ponce's famous IF YOU DON'T HOLD IT YOU DON'T OWN IT mantra. You've been watching the price of your silver go down for five years only to have your physical in the end literally stolen via bankruptcy?

http://www.sherv.net/cm/emoticons/hand-gestures/pondering-smiley-emoticon.gif

[osoab]

Sorry for the loss. Read the headline about BD and forgot to post about it at the time.

I do apologize, when I first read the thread title I though it was GAE's that were lost. 50 SAE's is a much more palatable loss compared to GAE's.

What ever happened to Tulving's customers? If they have settled, it might give you an idea of what to expect.

[osoab]

Looks like it is chapter 11 so you could still get some of your gold back if they are able to restructure.

But it is hard to feel sorry for someone who should have known better... :(

BTW... sorry for your loss. :'(

SAE's not GAE's.

I don't think I would post about losing 50 GAE's.

[Glass]

Sorry to hear about your situation.

yes, Do Not Wait to file your claim. Get your transaction evidence compiled as soon as you can. Contact the Administrator and request paperwork. You will need to have filed before the creditors meeting.

You maybe able to submit on the day but you might not get creditor status on the day.

Why is it important? The creditors meeting will be for the creditors. There will be voting and you need to be recognised as a creditor to be able to vote on any resolution or decisions.

An example might be a Deed of Arrangement or similar that can give control back to the same people or it can be to let someone off the hook in their fiscal or statutory responsibilities. You may wish to cast a dissenting vote, you might want to consent.

Without creditor status you will be a spectator. Police filing is not necessary, unless it comes to light some criminal activity has occurred. Otherwise it is a civil matter.

Sometimes these things can take years to clear up. I have been an unsecured creditor in several corporate wind ups. I think the longest one took 8 years. Was very big corporate collapse. Other smaller ones took about 3 years. One we got $0.30 on the dollar. Another we got about $0.08 on the dollar. The 3rd one there was about $0.00025 on the dollar. I think we got back about $18.00 total for that one. Not really worth presenting the cheque/check.

unfortunately a large chunk of the value will be consumed by the administrators. Probably 1/3 to 1/2 will go to them.

[ximmy]

Sorry for the loss. Read the headline about BD and forgot to post about it at the time.

I do apologize, when I first read the thread title I though it was GAE's that were lost. 50 SAE's is a much more palatable loss compared to GAE's.

What ever happened to Tulving's customers? If they have settled, it might give you an idea of what to expect.

I thought he wrote gold too.. WTF ... did the title get edited to correct the error or do I need to see a psychiatrist?

[osoab]

I thought he wrote gold too.. WTF ... did the title get edited to correct the error or do I need to see a psychiatrist?

I don't know. I thought GAE's from the beginning. I will check my history browser at work tomorrow (if I remember). It might show the thread title.

[osoab]

I'd be pissed about 50 SAE's, but wilver dropped a buck this week so far. Anyone with 800oz saw the same loss. Some perspective. :(

[osoab]

If I ever get my money/coins back, I say screw PM's and buy a bunch of this http://www.ammoman.com/556x45mm-federal-xm193-lake-city-55-grain-500

Cheaper here by a few cents.

420 Round Can - 5.56mm 55 Grain XM193 LC1AC1 Lake City Federal Ammo for AR-15 (http://sgammo.com/product/223-556mm/420-round-can-556mm-55-grain-xm193-lc1ac1-lake-city-federal-ammo-ar-15)

[Horn]

So they had some sort of option where u could store stuff with them?

That dont sound very direct....

So they built up all these layaway accounts and purchased wit the extra dough then got when the gettin was good.

[osoab]

So they had some sort of option where u could store stuff with them?

That dont sound very direct....

So they built al these layaway accounts and purchased wit the extra dough then got when the gettin was good.

They had an the Nucleo Exchange where you could buy/sell among others. They took a small cut.
https://www.bulliondirect.com/nucleo/

Were they up to date on their policy?



Clarification of Bullion Direct's Lloyd's of London Insurance Policy.

In addition to certain internal policies and procedures, our Lloyd's of London insurance policy is maintained to help protect our ability to meet our obligations to you as outlined in our Terms of Service. It is important to note that you are still reliant on Bullion Direct's ability to fulfill its obligations to you. Furthermore, our Lloyd's of London policy, in no direct way covers our customers individually. We use facilities, transport companies, and shipping/handling practices which are acceptable under our Lloyd's of London insurance policy.

Please note that under an independent storage arrangement, quality control and authentication of products may not be provided by the storage company itself.

[Twisted Titan]

I'm very sorry about your loss. it's a terrible feeling when you lose something that is precious to you. especially when you have a reasonable degree of performance


no one needs to cast stones because any one of us could have been the hot seat in some of the area just as important or even more so.

All the best brother

[cpy911]

Holding onto it is not good enough anymore. If you can't stand in front of it to defend it, you don't own it. Be prepared to stand in front of it to defend it with an assault rifle.

Kicking while a guy is down? Good news is that I withdrew all cash about $800 about 6 months ago to pay off some bills.
My process was to I fund the account and was buying on dips. Took delivery every so often. Got caught in the middle of all this. Never had a problem with BD for 8 years. Had no reason to change my process.




Being a GSUS member for over five years, you must have known about and understood Ponce's famous IF YOU DON'T HOLD IT YOU DON'T OWN IT mantra. You've been watching the price of your silver go down for five years only to have your physical in the end literally stolen via bankruptcy?

http://www.sherv.net/cm/emoticons/hand-gestures/pondering-smiley-emoticon.gif

[cpy911]

Thanks man!

Here is what happened (see file attachment) when I did a product draw...it still shows my coins, but says I don't have enough to draw. I wrote them a message saying I want all product sent to me and contact me for shipping payment. See attachment. Ha, will never get a call back for sure.

Setting up a collection fund...I accept in kind payments, goats, chickens, eggs, milk...got 4 kids to feed.

Honestly, it has been a tough summer. I teach at a community college on a limited term contract. All my summer classes were cancelled (NO INCOME) and we have tapped our emergency fund to get by, something I never though I would have to do. Things will get better this fall as I have a new contract through the year. I have not touched any PM's, so that is good.

Peace.



I'm very sorry about your loss. it's a terrible feeling when you lose something that is precious to you. especially when you have a reasonable degree of performance


no one needs to cast stones because any one of us could have been the hot seat in some of the area just as important or even more so.

All the best brother

[crimethink]

If I ever get my money/coins back, I say screw PM's and buy a bunch of this http://www.ammoman.com/556x45mm-federal-xm193-lake-city-55-grain-500

Ammunition is precious metal. :)

[crimethink]

Being a GSUS member for over five years, you must have known about and understood Ponce's famous IF YOU DON'T HOLD IT YOU DON'T OWN IT mantra. You've been watching the price of your silver go down for five years only to have your physical in the end literally stolen via bankruptcy?

http://www.sherv.net/cm/emoticons/hand-gestures/pondering-smiley-emoticon.gif


I won't kick him in the face when he's down. But it makes it even more painful to think about the "should have known" aspect.

[osoab]

Holding onto it is not good enough anymore. If you can't stand in front of it to defend it, you don't own it. Be prepared to stand in front of it to defend it with an assault rifle.

Kicking while a guy is down? Good news is that I withdrew all cash about $800 about 6 months ago to pay off some bills.
My process was to I fund the account and was buying on dips. Took delivery every so often. Got caught in the middle of all this. Never had a problem with BD for 8 years. Had no reason to change my process.

Book ain't kicking ya. He's pointing out the obvious.

[crimethink]

What ever happened to Tulving's customers? If they have settled, it might give you an idea of what to expect.

Not sure, but helpful material may be found here:

http://tulvingbankruptcy.com/

http://about.ag/tulving.htm

A very brief look at the data seems to indicate the Trustee was going to attempt Avoidance (clawback) of some of the assets...take note of the Rule 2004 Examination of A-Mark staff


Both the United States Attorney and Secret Service are investigating Tulving for criminal activity - active fraud may be a big difference between Tulving and BD:

http://www.coinweek.com/bullion-report/tulving-company-collapse/

[crimethink]

Book ain't kicking ya. He's pointing out the obvious.

I felt the same way. This guy "may have deserved it" from a prudence standpoint, but he's endured a painful lesson. We don't have to rub it in.

I imagine cpy911 will be one of Ponce's maxim's biggest cheerleaders from now on.

[ximmy]

I won't kick him in the face when he's down. But it makes it even more painful to think about the "should have known" aspect.

That's not being kicked in the face... this is...

White Man Brutally Beaten by Mob of 40 Blacks on July 4th – But Police Say It’s NOT a Hate Crime
http://toprightnewscom.c.presscdn.com/wp-content/uploads/2015/07/white-victim.jpg (http://toprightnewscom.c.presscdn.com/wp-content/uploads/2015/07/white-victim.jpg)
by Brooke Bosca | Top Right News
A 27-year-old White man was left bloodied and unconscious (http://www.cincinnati.com/story/news/2015/07/06/police-man-injured-in-anti-white-assault/29775635/) after being brutally assaulted by an wild Black mob in the streets of Cincinnati on Saturday night, following a “hip-hop and electronica” concert.
In one of the most disturbing videos I have ever seen, filmed after the attack, Black onlookers laugh at the bleeding victim, and taunt him, as only White pedestrians stop to render aid (warning: disturbing footage):
The attack was so clearly race-related that even police – notoriously unwilling to label Black-on-White incidents as “hate crimes” – listed it as “anti-white” in the official police report (below):
http://toprightnewscom.c.presscdn.com/wp-content/uploads/2015/07/cin-police-report.jpg (http://toprightnewscom.c.presscdn.com/wp-content/uploads/2015/07/cin-police-report.jpg)
Witnesses at the scene agreed that the White man was “singled out”, “targeted” and attacked.

[crimethink]

Another helpful tip to the OP and anyone else...

To keep track of documentary material about this case, you may wish to sign up for a PACER account:

www.pacer.gov

That's "Public Access to Court Electronic Records" (PACER).

Each search and page costs (with some caps - read the instructions), but, less than $15.00 per quarter is free. You can do a reasonable amount of searching/accessing for free that way.

[Horn]

Please note that under an independent storage arrangement, quality control and authentication of products may not be provided by the storage company itself.

Well there ya go, everybody's hands are as clean as babies under that arrangement.

"I'm sorry was it my job to inventory and authenticate silver rounds?
I was storing a bunch of these electronic receipts for you by all appearances"...

[burningleg]

cpy911, sorry to hear that. Doubt you will be made whole. While 50 SAEs still stinks to lose, I guess consider it a learning lesson? From now on always take delivery of the physical.

[Hitch]

That's not being kicked in the face... this is...

He fought like a fucking warrior. If you watch the video. Against those odds, multiple attackers and a mob of racist black folks. He didn't back down one inch. McKnight is one tough guy. Much respect goes out to that man, from me.

[cpy911]

Thanks man. I made a bad mistake, but recoverable. Lesson learned.


cpy911, sorry to hear that. Doubt you will be made whole. While 50 SAEs still stinks to lose, I guess consider it a learning lesson? From now on always take delivery of the physical.

[burningleg]

Will be interesting to see how many more bullion dealers go belly up in the upcoming months.

[Hitch]

The important lesson, is we all take our pants off one leg at a time.

[expat4ever]

The important lesson, is we all take our pants off one leg at a time.
Not me. I unbutton and they fall to the floor, then I hop out both feet at once.

[Glass]

Not me. I unbutton and they fall to the floor, then I hop out both feet at once.

pants have buttons?

How do transexuals do it? That's a broad question, aimed at no specific member here. Also talking about pants.

[Horn]

The important lesson, is we all take our pants off one leg at a time.

http://gold-silver.us/forum/attachment.php?attachmentid=7734&stc=1

[Twisted Titan]

Will be interesting to see how many more bullion dealers go belly up in the upcoming months.

A whole bunch...this deflation is a fricken killer.

But you known who im waiting for with bated breath?

Northwest Territorial Mint


This market will be the undoing of ross hansen

He has burened the silver candel at both end for years and the fuse has finally been lit of that stick of dynamite is his backside.



Save this post.....You read it on GSUS first and TT called it.

[Twisted Titan]

He fought like a fucking warrior. If you watch the video. Against those odds, multiple attackers and a mob of racist black folks. He didn't back down one inch. McKnight is one tough guy. Much respect goes out to that man, from me.


He would have been able to drop like 4 of them and the rest would have haulled @$$ after seeing the red mist ....getting stabbed is a viseral fear like the fear of fire.

Im gonna get one for me birthday




https://www.youtube.com/watch?v=mUAOE4CH-WA&feature=youtube_gdata_player

[gunDriller]

Cheaper here by a few cents.

420 Round Can - 5.56mm 55 Grain XM193 LC1AC1 Lake City Federal Ammo for AR-15 (http://sgammo.com/product/223-556mm/420-round-can-556mm-55-grain-xm193-lc1ac1-lake-city-federal-ammo-ar-15)

best price i've seen for the standard Federal 55 grain XM193 is 90 for $30, 33 cents each,
at PSA -
http://palmettostatearmory.com/index.php/federal-5-56-55gr-fmj-bt-90rds-strclp.html


wait patiently and they will have another free shipping weekend.

i'm biased - i think ammo should be on stripper clips. very important to protect the primer.

[Ponce]

You people have to forgive the guy, he didn't know that......."If you don't hold it, you don't own it".....by the one and only.

V

[burningleg]

From the BullionDirect discussion forum:

http://forum.bulliondirect.com/viewtopic.php?f=8&t=4517

[cpy911]

For truth.
I would also add, be prepared to defend it.


You people have to forgive the guy, he didn't know that......."If you don't hold it, you don't own it".....by the one and only.

V

[crimethink]

https://www.youtube.com/watch?v=mUAOE4CH-WA&feature=youtube_gdata_player

As with everything Bitchmade, way overpriced. Definitely look around on knifecenter.com for other options.

[cpy911]

Either a ka-nife or an AR-15 will work. Get one of each and lots of little 5.56 cartridges.


As with everything Bitchmade, way overpriced. Definitely look around on knifecenter.com for other options.

[Glass]

seems these guys never purchased any Gold on account of their customers

Bullion Direct Files Bankruptcy, Never Purchased Customer’s Goldhttp://investmentwatchblog.com/bullion-direct-files-bankruptcy-never-purchased-customers-gold/

Some guy talking to his in car camera. didn't watch it.

[Cebu_4_2]

He would have been able to drop like 4 of them and the rest would have haulled @$$ after seeing the red mist ....getting stabbed is a viseral fear like the fear of fire.

Im gonna get one for me birthday


https://www.youtube.com/watch?v=mUAOE4CH-WA&feature=youtube_gdata_player


I'd call you but it's late and don't want to wake your land. I'll call tomorrow.

[Horn]

Bullion Direct Files Bankruptcy, Never Purchased Customer’s Gold
.

So it turns into something other than bankruptcy proceedings,

sounds like those guys who purchased shoulda got civil lawyers a couple weeks back.


https://www.youtube.com/watch?t=243&v=3svSET8W8Yk

[mick silver]

years ago I made a big buy Northwest Territorial Mint it took almost four months to get my silver but it did come . he had the best price at the time but I lost a lot of sleep and that was the last time I order from them

[osoab]

So it turns into something other than bankruptcy proceedings,

sounds like those guys who purchased shoulda got civil lawyers a couple weeks back.


https://www.youtube.com/watch?t=243&v=3svSET8W8Yk

Ponce needs to contact this guy.

He is passing off Ponce's signature wisdom as his own.

[Glass]

Story getting worse

If You Can’t Touch It You Don’t Own It: Austin Gold Vault Comes Up Mostly Empty

(Thomas Dishaw (http://thomasdishaw.com/if-you-cant-touch-it-you-dont-own-it-austin-gold-vault-comes-up-mostly-empty/)) If you can’t touch it you don’t own it (http://www.sqmetals.com/). Here is another prime example of the importance of actually possessing physical assets like gold and silver, or you could end up like many of these unfortunate customers who have lost everything.

A recent article by the Austin American Statesman reports (http://www.mystatesman.com/news/news/local/downtown-austin-vault-of-precious-metals-turns-up-/nnYS2/?icmp=statesman_internallink_referralbox_free-to-premium-referral): Barbala bought more than $100,000 worth of precious metals through a little-known downtown Austin company. Started in 1999, Bullion Direct began as an online virtual trading floor where thousands of customers could buy and sell precious metals to each other, with the company taking a cut of each sale.
Later, it began selling the metals to customers directly. It also stored the commodities for those who requested it — such as Barbala — with the glittering coins and bars kept safely in individual piles for each investor in an old bank vault in its Lavaca Street offices.
At least that’s what everyone thought.
By the time auditors and lawyers got access to Bullion Direct’s 14th-floor offices six weeks ago, there were only a handful of gold and silver coins in an office safe. A second vault it had recently rented held only slightly more.
An estimated $30 million in cash, metal bullion and valuable coins, meanwhile, had vanished.


And the story gets worse. It’s estimated that the scammed investors will only recover 2-3% of their total investments. (http://www.mystatesman.com/news/news/local/downtown-austin-vault-of-precious-metals-turns-up-/nnYS2/?icmp=statesman_internallink_referralbox_free-to-premium-referral)Imagine having $100,000 in precious metals locked away in some vault and then when its time to collect only receiving $3000. This will be a heartbreaking lesson to the people involved and most likely destroy any chance of prosperity these families had.

What is clear is that the news has devastated those who believed the company was safekeeping the futures they’d bet on the rounds and bricks of gold and silver. Some lost hundreds of thousands of dollars’ worth of the precious metal with little apparent prospect of regaining it. Jesse Moore, an attorney representing several creditors, predicted that investors can hope to recover 2 or 3 percent of their money, at best.
Bullion Direct filed for bankruptcy protection on July 20, several days after the company abruptly shuttered its operations and let go its dozen or so employees. The company’s new lawyer, Joe Martinec, has hired a local turn-around specialist to try to squeeze whatever value remains out of it.

Bullion Direct only filed one tax return in 16 years… (http://www.mystatesman.com/news/news/local/downtown-austin-vault-of-precious-metals-turns-up-/nnYS2/?icmp=statesman_internallink_referralbox_free-to-premium-referral)


Beneath the surface, however, financial documents from Bullion Direct’s bankruptcy depict a startlingly different picture. James Hoeffner, an Austin attorney representing a Florida customer missing an estimated $250,000 in cash and metal from the company’s vault, said Bullion Direct filed only a single income tax return, in 2010, covering the previous decade.
It showed the company lost money for all but two of those years. By 2009, the documents show, the company was carrying $17 million in losses — not counting the tens of millions of dollars’ worth in eventually missing money and metal. Records also show McAllister had hired a bankruptcy attorney in 2012, but never filed.
Bullion Direct filed for bankruptcy protection on July 20, several days after the company abruptly shuttered its operations and let go its dozen or so employees. The company’s new lawyer, Joe Martinec, has hired a local turn-around specialist to try to squeeze whatever value remains out of it.
Several weeks into the job, he has described the company’s finances as a mess. Bullion Direct hadn’t filed a tax return since 2010. What little has been unearthed suggests it was losing money almost from the day it opened its doors. Records also indicate McAllister paid himself hundreds of thousands of dollars in annual compensation.

If anyone reading this does not physically own their gold or silver, I’m sorry but you don’t own it. Don’t end up like Gerald Celente who almost lost his six figure gold investment (http://www.infowars.com/gerald-celentes-gold-account-was-emptied-by-mf-global/), but due to his stature and Gods grace was able to recover most of his assets.


Link to Story IWB (http://investmentwatchblog.com/if-you-cant-touch-it-you-dont-own-it-austin-gold-vault-comes-up-mostly-empty/)