BNR – After over 500,000 American Silver Eagle coins went missing, a US court ordered two metals businesses to pay over $146 million.
The companies, as well as their owner, Robert Higgins, have been suspects in conducting a deceitful and illegal operation. They reportedly promised to keep the coins safe for consumers.
However, when investigators reached the vaults where the coins were supposed to be, they were not there.
Mr Higgins owns both of the companies, Argent Asset Group and First State Depository Company. The court required that the businesses provide $112.7 million in reparations and pay a $33 million penalty as part of the court deal.
Concerns Over Illegal Silver Leasing
The Commodity Futures Trading Commission (CFTC) of the United States stated Mr Higgins’ firms operated illegal silver leasing activities from 2014 to 2022. They were dubbed the Maximus and Silver Lease programmes.
The firms sought and stole at least $7 million in money and silver from over 200 consumers through the scams. According to the CFTC, the businesses allegedly provided incorrect and deceptive explanations for why clients could not withdraw funds.
According to the regulator, over 500,000 American Silver Eagle coins and over 9,000 gold coins have gone missing from clients’ balances.
Investigators claimed they discovered ‘IOU’ papers purporting to suggest a customer’s account but holding no assets in their stead.
“This kind of egregious behaviour merits the full weight of the Commission’s enforcement authority,” the CFTC added. Mr Higgins failed to respond quickly to a request for a remark.
The US government guarantees the weight and pure quality of American Silver Eagle coins.
According to the United States Mint, each coin holds at least one troy ounce (31.1g) of 99.9% silver that is pure.
