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tachord

Junior Member
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Posts: 10
Reply with quote  #31 
As I have resolved my case, I will not be following these threads anymore. I wish the best of good returns to all former BD customers. If anyone wishes to reach me, you can do so here: thomas.achord@gmail.com
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shooter magaven

Senior Member
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Posts: 138
Reply with quote  #32 
" 4. Is Bullion Direct willing to direct IDS to release the bullion to the titled owners?"

Willing? Maybe. But likely not with Lawyers involved.
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JG

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Posts: 981
Reply with quote  #33 
Quote:
Originally Posted by saxster
I'd like to add the caveat that each month that passes is another compounded 1.5% penalty on the principal owed to IDS by BD.  We don't know what amount is due, so we can't even make an estimate on the size of the haircut we might have to take.  What I'd like to avoid at any cost is having my property lumped into a bankruptcy deal and made part of a class action suit.  I'm willing to pay the percentage of the fees owed on my holdings, but I'm not ready to write off a fixed percentage like mentioned here, (10 to 20%).


The amount owed IDS depends on how much is stored there. It's been there less than a year, so likely less than 0.5% in storage fees. But if they are returning metal, presumably they *did* get paid the last time around. And even with interest, 1/2% and 1.5% interest for another year would end up being 0.6% of the value of your metal. So I see no need to rush on that account.

I see the 10%-20% cut thing not really working out. If everyone agreed, it would likely work. But let's say 90% agree to it, and 10% don't. BD ends up (for the sake of argument) just slightly in debt after that. BD then files for bankruptcy 2 months later. The bankruptcy Trustee says, "Wait a minute -- it isn't fair for these people to get almost nothing while most got 80%-90% of what they were owed. I'm going to do clawbacks to collect the metal that was sent out in the past 90 days."

Next, it is important to remember that customers are not in the driver's seat. If BD files for bankruptcy tomorrow, there is no easy way for customers to un-change that. Same with a class action lawsuit (that would be a bit easier).

One of the biggest questions is "Does Bullion Direct have all the metal that they claim to store for customers?" If so, there's a good chance that things will work themselves out fairly smoothly (except for people owed metal for orders).

And I've removed the Facebook link, as I believe that Facebook account does not belong to this Charles McAllister.

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jbholmes

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Posts: 19
Reply with quote  #34 
JG,

thanks for removing that facebook link. I think you are right on that account. The theory is a tantalizing one, and my thought was just that if this is the case, there may be enough people willing to take a voluntary hair cut to get everything that people want out so BD is square with the depository. It doesn't seem like numbers under 6 figures would be enough to cause these problems though. I think that amount could be raised, and it would be very worth trying to do so to keep the business going.

You're also right that there is probably no need to rush. If this is the case, posting here is probably enough to make BD realize that there are some people who would take a haircut and they can  decide if there is a path for negotiation. And if the metal or some of it is there, I think you're right, eventually cash value will get doled out pro-rata.

I can't imagine BD was fraudulently posting metal holdings from the get go, which is the worst case scenario, but one never knows.
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harley_52

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Posts: 132
Reply with quote  #35 
"One of the biggest questions is "Does Bullion Direct have all the metal that they claim to store for customers?" If so, there's a good chance that things will work themselves out fairly smoothly (except for people owed metal for orders)."

As one of those "people owed metal for orders," I'm not comforted by this news, though I'll be happy to see anybody get the metal BD was "storing" for them.  Mine was a catalog order for "in stock" bullion for which I paid, in full, by check, way back in March, 2015.  I smelled a rat by late April and things have only gone downhill since.  As a customer for about five years, I was initially shocked, but am now just disappointed and intent on somehow salvaging whatever I can from the large loss now staring me in the eye.

I believe Mr. McAllister has been insincere and deceptive in his practices for months, even as late as his June 15, 2015 message posted on the BDI site which thanks his customers for their "loyalty, patience, and understanding" and promises BDI will be operational as of the following Monday, will be catching up soon, and reminds his customers that "As always and in fairness, we will continue to prioritize orders by the order’s Release Date."    

Could the man be any more disingenuous?  Don't those sound like statements made to lure more orders, attract more money, and delay the inevitable customer backlash?

I have filed complaints with the BBB, the Texas AG, a mail fraud complaint with the USPS, and am working my way down the list of other agencies that may have jurisdiction and an interest.  Next will likely be the FTC.

Thanks again to JG for putting this site together, for his substantial insights, and for all the information he has made available.  I appreciate it a lot.
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BDistheBestest

Member
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Posts: 34
Reply with quote  #36 
Bullion Direct clearly is not prioritizing orders by release date, as some customers with a March release date didn't get their product while some with an April release date did.
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JG

Administrator
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Posts: 981
Reply with quote  #37 
Quote:
Originally Posted by harley_52
Could the man be any more disingenuous?  Don't those sound like statements made to lure more orders, attract more money, and delay the inevitable customer backlash?


He did stop taking orders by the end of the next week, and may have before that. And he didn't really have many options of what else to say (without spilling the beans, whatever they may be). But yes, it certainly does/did seem like a stalling tactic to delay the inevitable.

As for sending orders in order of release date, for the most part it looks like that was done. Unlike Tulving (where orders seemed to be sent out on a whim, with BBB/BCA complaints getting high priority), BD seemed to be sending them in fairly close to the order they were released.

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harley_52

Senior Member
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Posts: 132
Reply with quote  #38 
According to my bank, my check to BDI cleared on March 24, 2015.  According to BDI, it cleared on April 1, 2015 and that is the "release date" they use(d).  Maybe April 1st is more appropriate in this case because I really do feel like a fool for placing the order in the first place. 
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afterdark

Junior Member
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Posts: 17
Reply with quote  #39 
Has anyone else besides tachord got their metal back from IDS ?   
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BDistheBestest

Member
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Posts: 34
Reply with quote  #40 
After emailing IDS via their online contact form, I received a voicemail from their attorney (Alisa, as stated above), directing me to BD's attorney (same contact info given above) and offering to speak with me further via phone if needed.  At this time, I haven't yet contacted either, as I don't think more information will be forthcoming.
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JG

Administrator
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Posts: 981
Reply with quote  #41 
Quote:
Originally Posted by jim
I think it is $15,000 each, not $1,500


Just as an FYI for anyone interested:

The amount that Bullion Direct lists as owed IDS as an unsecured claim is just $3,905.

To be clear, it isn't a matter of someone writing a check to IDS for $3,905 and everyone getting what they are owed. But that is what BD currently seems to owe IDS.

FWIW, *if* that is a monthly fee for just one month, that would likely be for around $10M+ of metal. If for 6 months, $1.5M+.

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