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Alabama

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Reply with quote  #1 
Have they issued any type of statement or offered proof that they canceled on BD before BK?
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Alabama

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Reply with quote  #2 
I think there's other avenues to go down. Dillon Gage ,the vault company,the storage people & several others had a duty to audit. Did they hide stuff while weaseling out?
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Alabama

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Reply with quote  #3 
Quote:
We use facilities, transport companies, and shipping/handling practices which are acceptable under our Lloyd's of London insurance policy


So,where's the audit from Lloyds of these practices?

https://www.bulliondirect.com/aj/aboutUs.do?view=insurance
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JG

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Reply with quote  #4 
Quote:
Originally Posted by Alabama
Have they issued any type of statement or offered proof that they canceled on BD before BK?


I don't believe they need to. I haven't seen anything suggesting that any customers were beneficiaries of any insurance policies. In fact, Bullion Direct made it clear that the policy did not cover customers.

If there *is* a Lloyd's policy that covers this, I assume any payment would be made to the estate.

Quote:
Originally Posted by Alabama
I think there's other avenues to go down. Dillon Gage ,the vault company,the storage people & several others had a duty to audit. Did they hide stuff while weaseling out?


I believe that Bullion Direct only used their own (very large) vault at 700 Lavaca LL1 until they shipped what metal remained to IDS. In fact, there are signs showing that IDS got less metal than they had anticipated (the storage rate increased, and then they instituted a $300/mo minimum storage fee).

If indeed they were really shipped $30M of metal (or even $5M), I'm sure Charles would have spoken up about that.

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Alabama

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Reply with quote  #5 
So,where's the Lloyds check for the stolen/missing vault metal?
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JG

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Reply with quote  #6 
Quote:
Originally Posted by Alabama
So,where's the Lloyds check for the stolen/missing vault metal?


I don't believe they were insuring the vault metal.

If what seems to be claimed is true -- that the metal was sold for "expenses" that the business authorized -- there was no theft in the eyes of the insurance policy if it did exist.

And if metal was stolen as suspected, that was likely a long time ago, and for some reason not reported -- which is almost certainly because there was no insurance.

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Alabama

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Reply with quote  #7 
In your opinion what was Lloyds insuring?
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tboll

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Reply with quote  #8 
Transport of metal, Alabama.  Probably when shipping to customers or transferring to vault.  And they must have had a $5,000 deductible policy, so for most orders they essentially didn't even have insurance.  My gosh, the guy didn't have or buy metal when you placed an order.  So what's a little exaggeration about insurance going to matter?
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Alabama

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Reply with quote  #9 
I would like my metal transported to me. It appears to be missing.
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tboll

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Reply with quote  #10 
Good idea, Alabama.  I wished CM had thought of it:  "We [BD] had determined that storing metal was too expensive and risky so we informed our customers that they had to take delivery.  We then packaged all the metal and shipped it out to all our customers and it all disappeared in transit.  Good thing we have that transport insurance with Lloyd's of London."
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Alabama

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Reply with quote  #11 
What I'm trying to say is they had business partners that had a duty to do an inventory,make sure checks & balances were in place & where the hell is the IRS? I bet you or I can't go years without filing.

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JG

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Reply with quote  #12 
Quote:
Originally Posted by Alabama
What I'm trying to say is they had business partners that had a duty to do an inventory,make sure checks & balances were in place & where the hell is the IRS? I bet you or I can't go years without filing.


The IRS sees a $17M tax loss carryforward -- they aren't too likely to pursue a non-filing, perhaps assuming that the company shut down. There are probably hundreds of thousands of companies that do that each year (minus such a large loss).

But yes, if the IRS had investigated, this could have ended as much as 3 years earlier.

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au

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Reply with quote  #13 
Regarding inventories and audits for IRA accounts: I'm not sure if Equity Trust is considered a "nonbank" IRA custodian?  Does anyone happen to know?  
They had claimed they were in their past: http://equityinstitutional.com/about-us.aspx

Bringing this up as the IRS does mention an "audit process" for "nonbank" trustees and custodians, see below.
http://www.irs.gov/irm/part4/irm_04-072-018.html#d0e1766


Part V - Accounting and Auditing.

1. How often are Trust assets evaluated for performance objective? 
(Workpaper Part II A 4 D 1 c)

2. a. How often are Trust assets valued? 
b. What were the last two valuation dates? 
c. How is FMV determined?
(Workpaper Part II A 4 D 2 d)

d. How often are audits of fiduciary assets conducted? 
e. What were the dates of the last two audits? 
(Workpaper Part II A 4 D 3 a (1)-(3) & c)

f. Who performs the audit? 
g. How is the audit used? 
h. Who reviews the audit? 
i. Are the audit recommendations followed?
□ Yes □ No
j. Where are these actions documented?

-au
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JG

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Reply with quote  #14 
Quote:
Originally Posted by au
Regarding inventories and audits for IRA accounts: I'm not sure if Equity Trust is considered a "nonbank" IRA custodian?  Does anyone happen to know?  
They had claimed they were in their past: http://equityinstitutional.com/about-us.aspx


26 USC 408(n) says:

For purposes of subsection (a)(2), the term “bank” means—
(1)any bank (as defined in section 581),
(2)an insured credit union (within the meaning of paragraph (6) or (7) of section 101 of the Federal Credit Union Act), and
(3)a corporation which, under the laws of the State of its incorporation, is subject to supervision and examination by the Commissioner of Banking or other officer of such State in charge of the administration of the banking laws of such State.

Their About Us page now says "Equity Trust is a state regulated financial institution," so it looks like they are no longer a Nonbank Trustee.

They say "In addition, the Internal Revenue Code sets high standards for custodians of IRA Accounts and Equity Trust is required to comply with numerous complex IRS reporting and recordkeeping requirements."

They also have a document that says "Equity Trust’s board of directors, officers and employees work within a well-established system of internal controls that ensures the effectiveness and efficiency of
operations and compliance with applicable laws and regulations."

However, they would certainly make the claim that they cannot be responsible for fraud in third-party companies (whether or not they can get away with that is another story -- Bullion Direct is a company they have contracts with, not simply a random company you happen to have shares of).

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