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AndyG

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Reply with quote  #1 
In Louis McCann's document titled "Information for potential Creditors of Bullion Direct" there is the following sentence:

"In addition, Dillon Gage was paid $775,000 by BullionDirect within 90 days of filing bankruptcy."

Mr. Gage was not paid personally $775,000, correct?  IDS or one of its subsidiaries was paid that sum, correct?

Either way, doesn't this sound like a bit much for storage?  Would it also include shipping costs?  How much could have possibly been shipped?  BD rarely bought any metal. 
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AndyG

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Reply with quote  #2 
OK, I see now.

I thought Dillon Gage was an individual.  Not Dillon Gage Inc., the owner of IDS. 

Still, $775,000, for what? 

Just some more information:

Dillon Gage was sued over bullion in the  Robert Allen Stanford securities-fraud case: 

"Creditors sought $5 million Dillon Gage received shortly before Stanford’s alleged $7 billion Ponzi scheme came to light."

Interesting coincidence. 
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JG

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Reply with quote  #3 
Quote:
Originally Posted by AndyG
In Louis McCann's document titled "Information for potential Creditors of Bullion Direct" there is the following sentence:

"In addition, Dillon Gage was paid $775,000 by BullionDirect within 90 days of filing bankruptcy."

Mr. Gage was not paid personally $775,000, correct?  IDS or one of its subsidiaries was paid that sum, correct?

Either way, doesn't this sound like a bit much for storage?  Would it also include shipping costs?  How much could have possibly been shipped?  BD rarely bought any metal. 


I believe that $775,000 was paid to the company Dillon Gage, based in Texas, that owns IDS. It is almost certainly not be for storage, as IDS is a separate entity.

This is on the list of questions that I am compiling for the creditors' meeting tomorrow. It looks like it is a loan of some sort, as the payments were made in nice round numbers (e.g. $100,000). It also shows $60,891.26 as being left owed to Bullion Direct. It looks like this was for bullion that Dillon Gage supplied Bullion Direct on credit.

But there is also the mysterious $607,029.19 (and a whopping 10 ounces of silver) owed to an individual that has a name that matches someone who works for Dillon Gage.

In other words, it looks like Dillon Gage is owed money worth more than the contents of the IDS vault.

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"In God We Trust"

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Reply with quote  #4 
I was wondering the exact same thing. I hope this gets dug into.

My wild speculation is they got paid to "lose" or erase any security video recording of the vault being emptied. Why pay someone after going bankrupt?
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JG

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Reply with quote  #5 
Quote:
Originally Posted by "In God We Trust"
Why pay someone after going bankrupt?


The "within 90 days of filing bankruptcy" really means "within 90 days before filing for bankruptcy." These were payments spread out from April 22 through June 15.

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plankton

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Reply with quote  #6 
Or Dillon was first Creditor that got paid first ahead of us...
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JG

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Reply with quote  #7 
Quote:
Originally Posted by plankton
Or Dillon was first Creditor that got paid first ahead of us...


If so, the bankruptcy laws allow for a "clawback" -- where Bullion Direct might be able to require the money to be returned.

It may well be that Bullion Direct did significant business with Dillon Gage buying metal for customers, and this was typical activity. The rounded numbers ($50,000, $100,000, etc.) do suggest it was being paid on credit, as does the final amount owed ($60,891.26), which is separate from their account in the Website Claimants list. There was also a 1-month gap in payments (there were 8 payments in 3 months, but there was a 1-month gap in the middle).

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Khachir7

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Reply with quote  #8 
Quote:
Originally Posted by JG
Quote:
Originally Posted by plankton
Or Dillon was first Creditor that got paid first ahead of us...


If so, the bankruptcy laws allow for a "clawback" -- where Bullion Direct might be able to require the money to be returned.

It may well be that Bullion Direct did significant business with Dillon Gage buying metal for customers, and this was typical activity. The rounded numbers ($50,000, $100,000, etc.) do suggest it was being paid on credit, as does the final amount owed ($60,891.26), which is separate from their account in the Website Claimants list. There was also a 1-month gap in payments (there were 8 payments in 3 months, but there was a 1-month gap in the middle).



Perhaps he felt like defrauding a PM dealer is a little more dangerous than doing the same to the little folks.
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JG

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Reply with quote  #9 
Quote:
Originally Posted by Khachir7
Perhaps he felt like defrauding a PM dealer is a little more dangerous than doing the same to the little folks.


Oh, that ship sailed a long time ago. It looks like Bullion Direct owes over $10M -- about 1/3rd of the total amount owed -- to bullion wholesalers/dealers and the like.

Unless those were perhaps accounting anomalies, and they aren't really owed money.

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