The lawyer representing e-Bullion and Goldfinger Coin & Bullion in a federal trial has slammed the government's move to seize assets held by the companies, claiming that joint raids carried out by the FBI and IRS on August 5 made it impossible for e-Bullion customers to make withdrawals or deposits.

James Spertus told The Industry Standard on Wednesday that FBI and IRS agents seized bullion, records, and computer hardware in the raids. Approximately $24 million was seized, including "all assets" held in the accounts of e-Bullion's customers. He could not say how many accounts were affected, although a motion filed by Spertus on Monday stated that 466,300 accounts have been created since 2001, when the digital gold currency site first launched. Spertus was also unable to confirm how much is held in e-Bullion's overseas vaults. James Fayed, who founded Goldfinger and co-founded e-Bullion, claimed in another court filing that his companies have precious metals deposits in the U.S., Europe and Australia.

Fayed is being held in the Metropolitan Detention Center in Los Angeles, 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, but has not been charged in that case.

Spertus criticized the seizures. "The government's conduct in this case is off-the-charts extreme," he said. "The government has to verify that these assets are not e-Bullion's assets. They are account holders' assets."

Spertus added that Fayed's companies would be willing to get the required license, but in the meantime $300,000 was needed to preserve evidence in the federal case and maintain the companies' infrastructure. To this end, he and Fayed's personal lawyer filed an emergency motion on August 18 to request the government release the money. While a district court judge has been assigned to address the matter, a hearing has yet to be set.

Spertus also revealed that while the equipment used to operate the websites were not seized, they were inaccessible, and staff had been temporarily dismissed. "I told everyone to stand down. Right now, we are unable to run the business. We are unable to make deposits, or requests for withdrawal."

A spokeswoman for the FBI Field Office in Los Angeles confirmed that agents had seized computer hardware, but "did not officially close down the website."

Spertus said Fayed was devastated by the situation, and the companies were doing everything in their power to release the seized assets. "These are matters that are in the government's control," he said. "The goal is to get assets returned so customers can get their money back."

Background:

• 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
• Where are they now: Flooz