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Alabama

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Quote:
 The Debtor representative will be Dan Bensimon, who became the Chief Restructuring Officer of BDI on July 20, 2015, and who has no personal knowledge of the manner in which BDI conducted business in the past, but who will have been engaged in an investigation of BDI's books and records.


What a chicken sh@t cop out. The judge should throw these azzholes out of the room. Creditors have a right to ask questions of people there BEFORE this coward ran off with our money. For them to say this guy can't answer is a big steaming pile. Of course he knows what's going on. He just isn't going to say
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JG

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Reply with quote  #2 
Quote:
Originally Posted by Alabama
Quote:
 The Debtor representative will be Dan Bensimon, who became the Chief Restructuring Officer of BDI on July 20, 2015, and who has no personal knowledge of the manner in which BDI conducted business in the past, but who will have been engaged in an investigation of BDI's books and records.


... Creditors have a right to ask questions of people there BEFORE this coward ran off with our money. ...


Unfortunately, that's how the Chapter 11 bankruptcy system works. It doesn't have anything to do with choices made by the attorneys or Bullion Direct. Charles could voluntarily attend, but I can't imagine he would choose to do so.

The idea behind the creditors' meeting is to find out about assets, liabilities, what caused the loss, etc.

If Dan doesn't provide answers that he should know by now, there are ways to respond to that.

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"In God We Trust"

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Reply with quote  #3 
Quote JG -The idea behind the creditors' meeting is to find out about assets, liabilities, what caused the loss, etc.

What caused the loss? My guess is a bad investment (using our money) in oil. Everybody knows what happened to oil prices.

Just guessing with this being in Texas. 
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nobody

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Does it really matter?  If he'd held assets in custody as many expected, there wouldn't be a 95% shortage estimate [frown]


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harley_52

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Reply with quote  #5 
What happened that caused the losses was apparently theft and fraud, depending on the specifics in each case.  Whether he took that ill gotten money and subsequently lost it in the stock market, commodity markets, or whatever is really irrelevant.  He had no authority to use the money in any investment schemes, or for any other personal use because it was properly obligated to business purposes.
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JG

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Reply with quote  #6 
Quote:
Originally Posted by harley_52
What happened that caused the losses was apparently theft and fraud, depending on the specifics in each case.  Whether he took that ill gotten money and subsequently lost it in the stock market, commodity markets, or whatever is really irrelevant.  He had no authority to use the money in any investment schemes, or for any other personal use because it was properly obligated to business purposes.


The one catch: if any of the money is recoverable. I can't think of a good example from what is known, but there is a chance that at least *some* of that $30Mish+ could be recovered.

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harley_52

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***"The one catch: if any of the money is recoverable. I can't think of a good example from what is known, but there is a chance that at least *some* of that $30Mish+ could be recovered."***

I'm not a lawyer, but it seems to me that even if some of it is recoverable he would still have a problem for taking it and misusing it in the first place.  Can you take my money, keep it for a few months without my permission, and give some (or all) of it back if things pan out for you without penalty?  Is that legal?

I think the differences in obligations vs. assets here is so great we're all basically wasting our time.  Not that I'm planning to quit, mind you...  [smile]
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nobody

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Reply with quote  #8 
Oh yea, I didn't mean to suggest there was no point, just that the semantics at this point are "so what did you piss away the stolen funds on?" - there's very little dispute of such pissing....

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tboll

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Reply with quote  #9 
Quote:
Originally Posted by JG
Charles could voluntarily attend, but I can't imagine he would choose to do so.



JG, do you remember back when you thought that CM might actually make an appearance?   That seems like several lifetimes ago now, huh?
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robertmbeard

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Reply with quote  #10 
As to what caused the massive losses at Bullion Direct, I'm speculating that Charles McAllister gambled in leveraged paper gold/silver and lost big.  Either that, or he invested heavily in Greek bonds.
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JG

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Reply with quote  #11 
Quote:
Originally Posted by harley_52
I'm not a lawyer, but it seems to me that even if some of it is recoverable he would still have a problem for taking it and misusing it in the first place.  Can you take my money, keep it for a few months without my permission, and give some (or all) of it back if things pan out for you without penalty?  Is that legal?


Sorry, what I meant is that to creditors it may matter what the money was spent on. There's a huge difference between the money getting spent on a startup (where the money could then legally end up going to employees and such), versus buying a $4M home with cash (in which case there is a possibility of it being sold to recover assets truly belonging to customers).

I'm not trying to suggest that what happened to the money has any relevance on the outcome for Charles.

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JG

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Reply with quote  #12 
Quote:
Originally Posted by robertmbeard
As to what caused the massive losses at Bullion Direct, I'm speculating that Charles McAllister gambled in leveraged paper gold/silver and lost big.  Either that, or he invested heavily in Greek bonds.


There is some information out there suggesting that a lot went into failed businesses. We know that at least some money went to Nucleo (which had about 30 employees at its peak). It looks like some money also went into some other businesses that appear not to be faring much better Nucleo.

Given that there are signs of losses going back as far in 2009 (and quite possibly before), I think paper gold/silver is unlikely (or just a small piece of the puzzle).

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PM

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Reply with quote  #13 
I read somewhere in the docs that CM got reimbursed for travel to Dubai and Italy, anybody know why he went there?
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JG

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Reply with quote  #14 
Quote:
Originally Posted by PM
I read somewhere in the docs that CM got reimbursed for travel to Dubai and Italy, anybody know why he went there?


You read correctly (Docket 45 page 17). Presumably, it is was business trip. It is on the list of questions for the creditors' meeting on Tuesday.

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scooch

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Reply with quote  #15 
Has anyone examined what metal they did get from Bullion Direct to see if any of it isn't real gold or silver?


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