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Unsecured Creditors' Committee
Posts: 14
Reply with quote  #1 
See the attached file.

Joshua, can you actually post the contents?


Attached Files
docx Information_for_potential_Creditors_of_Bullion_Direct_(2).docx (37.31 KB, 29 views)


Posts: 991
Reply with quote  #2 
Originally Posted by ScottBurns
Joshua, can you actually post the contents?

Sure. The document has better formatting, but here are the contents:

Information for potential Creditors of Bullion Direct

From: Louis McCann, Chairman of Creditor Committee

August 2015


On July 20, 2015, BullionDirect Inc. filed for bankruptcy protection under Chapter 11 in Austin Texas, Case No. 15-10940.

During the week of August 17, 2015, I was appointed to the Unsecured Creditors Committee for this Bankruptcy Case and I was elected Chairman.

I purchased $200,000 of specifically identified precious metals in 2008 for my Rollover IRA. I have been informed that the best estimate to date that there are people like me who made similar investments and that the total investments are worth approximately $20,000,000. I have been informed that there is approximately $1,000,000 of precious metals presently available and that BullionDirect Inc. owns some intellectual property that may be of value.

I am not an attorney and claim no better knowledge of this mess than any of you. I was simply retired and available, and want to obtain as much of my investment back as I can for my children’s’ benefit. My investment constituted a significant part of my estate.

I am an Ex- Navy trained Pathologist who has five kids. I attended medical school on the Navy scholarship, and had 11 years active and 7 years reserve duty. I practiced pathology in private hospitals and labs from 1981 until May 2014. I am honest.

Any information I provide to you is not legal advice. In point of fact the only advice I will give you is to hire a lawyer to help you understand a Chapter 11 Bankruptcy proceeding. Such attorney can also advise you as to what you should or should not do.

The firm representing BullionDirect is Martinec, Winn & Vickers, PC with Joe Martinec as Austin counsel. Such firm took a $20,000 retainer prior to filing bankruptcy.

The primary principal of Bullion-Direct was Charles McAllister. Mr. McAllister resigned immediately prior to filing bankruptcy upon the insistence of Mr. Martinec. I have been informed as a matter of law, Mr. Martinec cannot represent Mr. McAllister, Mr. Kaytal, any of the board of directors, any of the shareholders, or any of the creditors in this proceeding.

I have been informed that a restructuring specialist Mr. Dan Bensimon has been employed as the Chief Restructuring Officer of BullionDirect immediately prior to the filing of the bankruptcy. Mr. Bensimon was not previously a part of Bullion Direct. I have been told Mr. Bensimon is honest and honorable, well thought of, and an ex-special forces guy. He is working professionally in conjunction with Mr. Martinec, per bankruptcy law.

2 What this means to the creditors

I cannot tell you whether any criminal activity went on while Mr. McAllister was running BullionDirect even though I have private opinions concerning the same. I have been informed that the F.B.I., the Travis County District Attorney, the Texas Attorney General, and attorney generals from other States have expressed interest in this matter.

I do not know where our precious metals went. For that matter, I do not know if BullionDirect was in fact using our money to purchase the precious metals. I simply do not know.

To assist in finding out the answers to these questions and to hopefully recover additional assets, the United States Trustee appointed a Creditors’ Committee of which we have three members. We, in turn, are in the process of hiring a law firm, Dykema Cox Smith, with Jesse Moore as lead counsel. Such attorneys will represent the unsecured creditors as a whole and will likely file motions to pursue causes of action against parties if they believe it would result in more money going into the bankruptcy estates to pay creditors.

If this case is like most bankruptcy proceedings, it is going to take a couple of years to sort through this proceeding and may be longer. In my opinion as a creditor, our monies and hard assets have been substantially diminished. All of the creditors’ monies are substantially diminished at this time. The gold and silver we thought was purchased and stored by Bullion Direct does not appear to be there. I cannot understand or accept this.

I have attached a legal document that I did not prepare to this memo. Please show this to your attorney. It has information regarding protecting your claim.

3 What has happened

A few of the largest creditors myself included separately engaged private attorneys in Austin Texas where the bankruptcy action was filed to seek remedial action.

I attended an unsecured creditors meeting over the phone with the Assistant United Trustee and others. I was appointed to the Creditors Committee. The Creditors Committee elected me Chairman during this telephone conference.

Dillon Gage Inc., the owner of IDS which was the Debtor’s primary vault, also sought to be on the unsecured creditors committee. I opposed the appointment of Dillon Gage to the committee. This was not personal, but I did so because their subsidiary IDS has or had precious metals that were deposited by BullionDirect. In addition, Dillon Gage was paid $775,000 by BullionDirect within 90 days of filing bankruptcy. These monies may or may not be recoverable. I don’t know. I am not an attorney and claim no better knowledge of this mess than any of you. I am retired and available, and want to obtain as much of my investment back as I can for my children’s’ benefit.

My primary focus is to assist our attorneys in maximizing our recovery for unsecured creditors. Please exercise discretion in emailing me and other parties. As stated earlier, I am not an attorney and it would be best for you to get legal opinions from attorneys. There may be some information that I understand and believe to be important. I will pass on such information in my discretion.

Besides employing an attorney, you may want to get on the Pacer website. The Pacer website permits you to review any papers filed in the bankruptcy proceeding and is actively used by attorneys to keep up with the status of the case or to find out contact information for various parties. There is a small fee for its use. The pacer website is http://www.pacer.gov/ Use of such website is intuitive.

4 Some Good News

There are meetings currently going on in Austin Texas to address this issue further.

The Creditors Committee is getting organized. We need an infrastructure to adequately respond. The committee is comprised of myself, and Drs. Suzuki and Burns. The committee is having the first meeting of creditors with the Debtors, i.e. Bullion direct in Austin Texas on Tuesday the 25th. I will attend. You are also welcome to attend. The meeting will consist of asking Mr. Bensimon questions about the bankruptcy proceeding. Because Mr. Bensimon was not present when the wrongdoing was done, we know his ability to answer questions will be limited. Nevertheless, I consider it worth my time to travel from my home in Florida to Texas to attend the meeting. The meeting will be conducted by the assistant U.S Trustee attorney assigned to our case, Ms.Valerie Wenger.

Mr. Moore, my attorney, and others will be in attendance. . We are going to fight this injustice. This demands a fight. We did not start this. We need to line up together for our mutual benefit.

I am personally looking forward to the meeting. It is impossible for me to understand what is going on without the input of the attorneys and hearing testimony for myself. .

4 Official records and information You should be aware of

On Tuesday, August 18, 2015 3:48 PM, "Wenger, Valerie L. (USTP)" <Valerie.L.Wenger@usdoj.gov> wrote:




Thank you for participating in the creditors’ committee formation phone call.


Dr. McCann, you have agreed to serve as the chairman of the committee.  On the committee formation notice that I will file with the court (which will become a public record), I will use Mr. Hoeffner’s physical address as your contact address, and will use your yahoo.com email address.


Dr. Burns, I will also use your email address on the formation notice.    Are you willing to have xxxxxxxxxxx the on the notice?  If not, please provide me an alternative address.


Dr. Suzuki, I will use Mr. Ruggero’s address for your contact address.  Please forward me your new email address as soon as possible.


I will not include your telephone numbers on the committee formation notice.


Ms. Moen and Ms. Fontaine, if Dillion Gage is still interested in being considered to serve on the committee, please send me all documentation that indicates that the payments DG received from the Debtor since April 2015 were not preferential payments.  I will also need to discuss with the Asst. U.S. Trustee in my office any effects of DG being a potential defendant might have on appointing DG to the Committee.


Thank you.



Valerie L. Wenger

Trial Attorney

Office of the US Trustee

903 San Jacinto Blvd., Rm. 230

Austin TX 78701


512-916-5331 (fax)





Here is a link to file a claim:


Forms | United States Bankruptcy Court - Western District of Texas

***NOTE TO PUBLIC ACCESS USERS*** Judicial Conference of the United States policy permits attorneys of record and parties in a case (including pro se litigants) to receive one free electronic copy of all documents filed electronically, if receipt is required by law or directed by the filer. PACER access fees apply to all other users. To avoid later charges, download a copy of each document during this first viewing. However, if the referenced document is a transcript, the free copy and 30-page limit do not apply.

U.S. Bankruptcy Court

Western District of Texas

Notice of Electronic Filing

The following transaction was received from Joseph D. Martinec entered on 8/18/2015 at 1:04 PM CDT and filed on 8/18/2015

Case Name:

BullionDirect, Inc.

Case Number:


Document Number:


Docket Text: 
Motion to Extend Time for Filing Rule 2015.3 Report filed by Joseph D. Martinec for Debtor BullionDirect, Inc. (Martinec, Joseph)

The following document(s) are associated with this transaction:

Document description:Main Document 
Original filename:Motion - Extend Time to File Rule 2015.3 Report - 8-18-2015.pdf 
Electronic document Stamp: 
[STAMP bkecfStamp_ID=988230274 [Date=8/18/2015] [FileNumber=21541928-0 
] [08ece38c9e478f32e3b9180c263ce5f3d86ff51d85d335ee6fe05c4e304528ff904 

15-10940-tmd Notice will be electronically mailed to: 

Steven B. Bass on behalf of Creditor United States of America
Steven.Bass@usdoj.gov, lori.wilson@usdoj.gov 

Kay D. Brock on behalf of Creditor Travis County
bkecf@traviscountytx.gov, kay.brock@traviscountytx.gov 

Richard T. Chapman on behalf of Creditor Janak Law Firm
rchapman@andersonsmith.com, roxanne@andersonsmith.com;Jamie@andersonsmith.com 

Brent A. Devere on behalf of Creditor David Ray

Jeffrey R. Erler on behalf of Creditor Diamond State Depository, LLC
jerler@ghjhlaw.com, cboston@ghjhlaw.com;lwadley@ghjhlaw.com 

Jeffrey R. Erler on behalf of Creditor Dillon Gage Inc. of Dallas
jerler@ghjhlaw.com, cboston@ghjhlaw.com;lwadley@ghjhlaw.com 

James V. Hoeffner on behalf of Creditor Louis S McCann
jhoeffner@gdhm.com, fmonroe@gdhm.com;ctrickey@gdhm.com;bcumings@gdhm.com 

Joseph D. Martinec on behalf of Debtor BullionDirect, Inc.
martinec@mwvmlaw.com, white@mwvmlaw.com 

William T. Peckham on behalf of Creditor Clinton C. Price
wpeckham@peckhamlawaustin.com, calexander@peckhamlawaustin.com 

Douglas J. Powell on behalf of Creditor David Emery

Peter C. Ruggero on behalf of Creditor Kazu Suzuki

Martin Warren Seidler on behalf of Creditor Gerard Barrack
seidlerlaw@yahoo.com, ecfseidlerlaw1@yahoo.com 

United States Trustee - AU12

15-10940-tmd Notice will not be electronically mailed to: 

Samuel Bayman
4307 Opal Court
Castle Rock, CO 80104

Julie B. Fick
6604 West 164th Terrace
Stilwell, KS 66085

Laura Fontaine on behalf of Creditor Diamond State Depository, LLC
Gruber Hurst Elrod Johansen Hail Shank
1445 Ross Avenue Ste 2500
Dallas, TX 75202

Laura Fontaine on behalf of Creditor Dillon Gage Inc. of Dallas
Gruber Hurst Elrod Johansen Hail Shank
1445 Ross Avenue Ste 2500
Dallas, TX 75202

Unique Strategies Group,Inc.
7028 Cielo Azul Pass
Austin, TX 7873

General Comments for Creditors of BullionDirect Inc. (BDI)



The First Meeting of Creditors is scheduled for 1:00 pm on August 25, 2015, at 903 San Jacinto, Room 1500, Austin Texas 78701.  Creditors are not required to attend.  The proceeding will be conducted by Valerie L. Wenger, an attorney for the Office of the U. S. Trustee. The meeting is intended to allow creditors to ask questions of a representative of the Debtor. 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. He will also provide a status report on the prospects for licensing or sale of intellectual property owned by BDI, or its subsidiary, Nucleo Development, LLC.


Proofs of Claim do not have to be filed by the First Meeting of Creditors.  The deadline for filing proofs of claim is November 23, 2015.  Debtor has requested that the deadline for filing proofs of claim be extended to January 25, 2016. Notice will be given if that extension is granted.  Instructions for filing a proof of claim can be found at


Proofs of claim should be filed before the deadline if you are not listed as a creditor but you believe that BDI owes you money or has an unfulfilled obligation regarding a precious metal purchase or storage, or if your claim has been listed as "disputed". The accounts are listed as "disputed" because, in BDI's database, the accounts originating at the website do not list a specific overall account balance and do not indicate the status of the precious metal "obligations" for the account. Debtor is attempting to reach an agreement with creditors in the case, including the Creditors Committee - if one has been appointed, and approval by the court for scheduling claims in a manner that would remove the "disputed" designation from most claims. .


Delivery or Transfer of Metals from the Vault.  No deliveries or transfers of precious metals will occur except by order of the court, with prior notice to you. The contents of the vault in Delaware is substantially less than necessary to satisfy the claims of creditors, and there are pending disputes regarding title to the precious metals that comprise the vault inventory. The account records at the BDI website are not accurate or reliable with regard to the inventory of the vault. 


Official Unsecured Creditors Committee - An Official Unsecured Creditors Committee has been appointed by the U. S. Trustee, namely:

Louis McCann, Jr. Chairman (lsm9649@yahoo.com)

Scott Burns, Jr.  (scottburns@bellsouth.net)

Kazu Suzuki (bcad72015@gmail.com)




Joseph D. Martinec

Proposed Attorneys for BullionDirect, Inc.

Chapter 11 No. 15-10940-tmd

United States Bankruptcy Court for the Western District of Texas, Austin Division





Martinec, Winn & Vickers, P.C.

919 Congress Avenue, Suite 200

Austin, TX 78701-2117






Posts: 96
Reply with quote  #3 
And there you have it. Thanks, JG, and thanks to Scott, Mr. McCann, and Mr. Suzuki for accepting this responsibility and spearheading this effort. I hope that at least some small restitution can be made (especially to those who have lost a lot more than I have), but more than that, I sincerely hope that Chad McAllister does some serious prison time.

Junior Member
Posts: 4
Reply with quote  #4 

Thank you for your service to our country, this committee and for helping to keep others informed.  I am wholeheartedly sorry for your significant financial loss suffered at the hands of BD.  This is a difficult thing to come to terms with as we ourselves made the choice to do business with BD.  Mr McAllister's last post on the BD forum was simply him justifying himself.  BD may have once been legitimate, but for quite some time it has simply been gross mis-management, complete disregard for fiduciary responsibilities, complete disregard for clients, a ponzi scheme, and outright theft.  Someone should not just be allowed to walk away from such carnage.

I pray you recover something.

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