The Industry Standard - e-Bullion update: Fayed's lawyers say feds seized $24 million in assets - Comments

Readers: There are two major

Ian Lamont — Fri, 13 Feb 2009 09:47:49 -0800

Readers: There are two major developments in the e-Bullion story, located at the following locations:

Copies of the relevant court documents are linked from the articles. I am closing the comment thread here, but you are welcome to continue the discussion in the comment threads for the two new articles.

Ian Lamont
Managing Editor
The Industry Standard

Readers: There is a new

Ian Lamont — Tue, 25 Nov 2008 14:22:38 -0800

Readers: There is a new update:

e-Bullion's lawyer blasts new government claims, says seizure of funds "not authorized"

You are welcome to comment below the new article. Please note that I cannot give any advice on how e-Bullion depositors can recover their funds.

Ian Lamont
Managing Editor
Industry Standard

just found out about

tony webb — Sun, 05 Oct 2008 15:15:34 -0700

just found out about ebullion, does anybody know the correct procedure to try and get money back?
I live in spain and have no idea of US legal system.

Dear Ian, I would like to

NMS — Thu, 18 Sep 2008 22:50:24 -0700

Dear Ian,

I would like to express my heartfelt thank you for this forum. At least, given this difficult times as investors at e-Bullion, your forum provide us clear direction of the case.

More power to you Sir. This site is very much appreciated as one of e-Bullion investors.

Thank you so much,
Initials "only" NMS

Dear Mr. Spertus, Thank you

NMS — Thu, 18 Sep 2008 22:44:48 -0700

Dear Mr. Spertus,

Thank you for your statement. I am one of the investors that we pray to recover our money from e-Bullion. I am hoping to provide us an update of any development if it becomes available.

Again, thank you Sir and more power to you and your firm.

Initial "only" NMS

Readers: The federal charge

Ian Lamont — Wed, 17 Sep 2008 11:10:53 -0700

Readers: The federal charge against Fayed has been dropped, but not against e-Bullion:

Feds drop charge against James Fayed, e-Bullion still under indictment

Ian Lamont
Managing Editor
The Industry Standard

Here is the latest

Paul Huebl — Tue, 16 Sep 2008 22:07:17 -0700

Here is the latest information about the Murder arrest and prosecution of James Micaael Fayed and Jose Moya. They will be sitting in jail awaiting their trial for the next two to three years. That's how long these cases take to get resolvd.

Investors need to get propert caims in to avoid being shut out by time limits, Some people here chose to pretend everything was somehow okay when it was not

This is all I have to date. Good Luck
http://www.crimefilenews.com/search/label/fayed%20murder

James Fayed is now charged

Paul Huebl — Mon, 15 Sep 2008 21:17:55 -0700

James Fayed is now charged with his employee, Jose Moya of Capitol Murder. It will take up three years for this case to go to trial as Fayed sits in jail.

For the clowns that suggest wait and watch your money vanish again there are legal time limits to file claims.

Here is the very latest: http://www.crimefilenews.com/search/label/fayed%20murder

Breaking news: e-Bullion

Ian Lamont — Mon, 15 Sep 2008 17:37:34 -0700

Breaking news:

e-Bullion co-founder charged with murder

I was notified of the news by Paul Huebl; additional details came from the Ventura County Star.

However, there's no word on what will happen with e-Bullion's seized assets, and it may be a long time before anyone finds out -- both trials have yet to begin.

Ian Lamont
Managing Editor
The Industry Standard

Readers: Another update,

Ian Lamont — Tue, 02 Sep 2008 12:26:06 -0700

Readers: Another update, courtesy of the Ventura County Star:

Judge denies request to maintain e-Bullion's computer systems

I believe Fayed is scheduled to appear in court in the middle of this month, and the trial starts on Sept. 30.

Ian Lamont
Managing Editor
The Industry Standard

Lee, sorry to see you leave,

micinka — Fri, 29 Aug 2008 14:37:12 -0700

Lee, sorry to see you leave, let me know if you get any news from any other blog.

David, I am not in violation

Lee — Fri, 29 Aug 2008 14:03:23 -0700

David, I am not in violation of any of these terms and conditions. Anyway, I'm done. This thread is going nowhere and this is not constructive. This is a complete waste of my time. This is my last post. Good bye.

David, I am not in violation

Lee — Fri, 29 Aug 2008 13:46:56 -0700

David, I am not in violation of any of these terms and conditions. Any way, I'm done. This thread is going no where and this is not constructive. This a waste of time. This is my last post. Good bye.

Huebl, nobody suggested to

micinka — Fri, 29 Aug 2008 13:03:45 -0700

Huebl, nobody suggested to hire Fayeds attorney, and nobody would do that. Fayeds attorney was only contacted, to get an update, since the government wasn't and isn't talking. There are no Investors in e-bullion. There are account holders. The best thing will be, that account holders get a lawoffice to represent all account holders, which is cheaper and more efficient. But now is not the time yet.

If investyors need to know

Paul Huebl — Fri, 29 Aug 2008 10:53:33 -0700

If investyors need to know correct information they need their OWN attorneys to advise them. Lawyers for Fayed and his companies have Fayed's interest and assets to protect. They are not there to protect investors. Investors are clearly AT RISK.

e-Bullion update: Fayed's lawyers say feds seized $24 million in assets

Ian Lamont — Wed, 20 Aug 2008 09:27:34 -0700

A motion filed by the lawyers for e-Bullion's co-owner James Fayed claims that FBI and IRS agents seized "bank accounts, business records, property and precious metals holdings" worth $24 million on August 5, according to a new report on the Ventura County Star website. The motion also requests that the government release $300,000 to preserve electronic evidence, including e-mails, audit trails, transaction histories and other electronic records and data, says the Star. (Note: There is an update and a copy of the motion at the bottom of this article.)

Fayed is in jail, awaiting trial on a federal charge of operating a money transmitting business without a license. He is also a suspect in the July 28 murder of his estranged wife, Pamela Fayed, in a Los Angeles parking garage.

August 5 is the date that e-Bullion's account services were taken offline for "routine maintenance." The report in the Star does not mention e-Bullion, only an associated gold-trading company owned by James Fayed, Goldfinger Coin & Bullion. However, Fayed described the strong connections between e-Bullion and Goldfinger in an earlier court filing, and e-Bullion's services are heavily promoted on the Goldfinger website. The Star report says the motion states that the cost of maintaining "Internet servers and [the] computer network system" totals $100,000 per month, including staff-related costs. It further claims that crucial evidence on the system is at risk because of the seizure, and suggests this information would be lost if it were to go down.

The motion also states that the target of the federal investigation might not have been James Fayed and his gold-trading businesses. This could be a reference to the alleged scam outlined in a government memorandum filed earlier this month. The document says e-Bullion was used to transfer money belonging to victims of a massive "Ponzi scheme" in 2006, but does not accuse Fayed of devising the scam.

The Industry Standard is attempting to verify the information described in the Star report, and to determine whether the alleged seizures on August 5 are related to e-Bullion accounts being disabled on the same date.

Update: Paul Huebl has posted the motion cited in the Star article on his website, and you can also view it on the second page of this article. The "[Proposed] Order Granting Application for Release of $300,000 to Preserve Exculpatory Evidence" blames the ongoing e-Bullion.com shutdown on the FBI and IRS search and seizure warrants executed on August 5.

The $24 million cited in the proposed order includes gold and silver from Goldfinger's vaults that is "held for the benefit of thousands of e-Bullion customers." It further reveals that 466,300 user accounts have been created on e-Bullion since 2001, although it is not clear how many of those accounts were active as of August 5.

According to the motion, Fayed is offering to assist law enforcement authorities in investigating past and future transactions for evidence of criminal activity. It notes that in the past Fayed has "cooperated with inquiries" from the SEC, the FTC, U.S. Attorney's offices in several states, and various other federal, local, and state agencies.

The document warns that "disclosure of this indictment would certainly cause disruption, if not a complete shut-down, of the relevant Internet sites and would, accordingly, likely destroy any possibility of a proactive, ongoing investigation of very important targets."

Huebl has further analysis of the motion and the murder investigation on his blog. Mark Herpel of DGC Magazine has also written an analysis of the situation.

The court document follows:

Fayed money motion - Upload a Document to Scribd

Read this document on Scribd: Fayed money motion

Background:

e-Bullion's lawyer blasts new government claims, says seizure of funds "not authorized"

Feds drop charge against James Fayed, company still under indictment

e-Bullion co-founder charged with murder

e-Bullion's lawyer calls government's actions "extreme"

e-Bullion update: Fayed's lawyers say feds seized $24 million in assets

Why use e-Bullion? An investor explains

Court papers indicate James Fayed had absolute control over e-Bullion

Daughter seeks control of mother's ownership interest in e-Bullion

Not all e-Bullion customers are worried by outage

e-Bullion still down for "routine maintenance"

e-Bullion co-founder jailed on money transfer charge

Report: Feds investigating e-Bullion in fraud inquiry

E-Gold directors escape jail time with guilty plea

Where are they now: Flooz