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Lars

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Reply with quote  #1 
Scumbag got ten years, and was ordered to pay nearly $16.2 million in restitution to over 5800 victims.  Got off too easy, as far as I'm concerned.

At least I can look forward to that restitution.  Yeah, I know - I've got a better chance of getting a date with Scarlett Johannsen AND winning the PowerBall jackpot - on the same night - than I do of seeing any of that money.  But I can dream, right?
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napolm

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Reply with quote  #2 
Sad to say. He will be out in no time. And spending the money he is hiding
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JG

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Reply with quote  #3 
Quote:
Originally Posted by napolm
Sad to say. He will be out in no time. And spending the money he is hiding


I find it very unlikely he will be out in "no time" -- he was sentenced in a federal court, which means that he is required to spend a minimum of 85% of the 10 year sentence in prison. See, for example, https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2015/11/prison-time-surges-for-federal-inmates .

I personally doubt that he has a stash of gold hidden somewhere (on paper, at least, it looks like the company was spending millions more than it brought in, which had to have been paid for via the metal stolen from customers). If he took out millions as a "retirement plan", he wasn't smart enough to avoid prison time. Maybe I'm different, but I wouldn't want to spend around a decade in prison, even knowing that when I got out I had millions of dollars of metal stashed away (and would have to give it up if the government got wind of it).

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Cbrad01

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Reply with quote  #4 
He should have been charged and convicted on 5800 cases of fraud for each one of use who got ripped off....
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Cbrad01

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Reply with quote  #5 
As of today it still doesn’t look like he is in jail...
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tboll

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Reply with quote  #6 
I wonder if his not being in jail is due to the current viral epidemic?
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JG

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Reply with quote  #7 
It could be that things are slower/stalled, or it could just be the normal practice. Unfortunately, the court system isn't very transparent ("pay to play") -- documents cost $.10 per page, but as far as I know his surrender date isn't listed in those documents. It could be that it was stated at the hearing (which could cost $100s to get a transcript), or (more likely) it hasn't been determined yet.

As reference, in the Tulving case (which was tried in North Carolina, in non-virus times), he was sentenced on February 17, 2016, and was in prison by about April 21, 2016. So it took a bit over 2 months in that case. So I would not be shocked if it took another month (or perhaps longer).
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PM

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Reply with quote  #8 
How much time does he have to pay restitution?
What happens if he doesn't pay it?
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JG

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Reply with quote  #9 
Quote:
Originally Posted by PM
How much time does he have to pay restitution?
What happens if he doesn't pay it?


I believe in criminal cases like this, there is set time period, nor is there any penalty for non-payment.

In this case, it is nearly impossible that he will be able to pay the entire restitution (unless he really does have many millions of dollars of bullion stashed away, which some (but not I) believe).

That said, I believe the government is able to go after any assets he may have and/or garnish his wages.

This is an area I have very little knowledge of, so I could be wrong about any of this (in other words, if anyone has a better answer, feel free to speak up! <G>[wink].

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JG

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Reply with quote  #10 
Quote:
Originally Posted by tboll
I wonder if his not being in jail is due to the current viral epidemic?


The answer to this just came today.

The Bureau of Prisons sent a letter to the government, dated March 24, 2020. The government requested that the judge allow a delay, stating they are "requesting a delay in accepting the defendant into the designated facility. Because of the on-going coronavirus situation, BOP has asked for additional time for accepting prisoners at some of their facilities. In compliance with the letter and request from the BOP, the government asks that the Court reset the defendant’s report date to July 1, 2020." The judge filed an order authorizing the extension.

So Charles McAllister will be free until July 1, 2020 unless something changes.

He has filed an appeal, and asked to be out of prison during the appeal, but the government filed an 11-page objection. My *guess* is that the judge will deny McAllister's request to avoid prison time until the appeal is heard, but that is a possibility.

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jkline

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Reply with quote  #11 
It is interesting and infuriating the .gov sealed the restitution document.    
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JG

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Reply with quote  #12 
Quote:
Originally Posted by jkline
It is interesting and infuriating the .gov sealed the restitution document.    


I believe it is sealed because it contains the contact information of victims.

I also believe victims can get a copy. If you got an email from the DoJ yesterday with the subject "U.S. Department of Justice - VNS - Investigative Case ...", it states:

We have downloaded several documents to the Victim Notification System (VNS) webpage that you can access. When you log into the secure VNS website, you will need to enter your PIN and VIN (Victim Identification Number) or the password you have created. The documents we have downloaded to VNS, include the PRESS RELEASE after Charles McAllister's sentencing hearing, the 6 page Criminal JUDGMENT, and the 243 page "sealed" RESTITUTION ADDENDUM. I recommend you print the 6 page JUDGMENT and find your name on the Restitution Addendum and ONLY print the page with your loss listed. The Restitution Addendum was sealed by the Court, and we are only able to share this document with the victims.

JG
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jkline

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Reply with quote  #13 
FYI, according to the DOJ email, one can write the amount off, not as a capital loss but as theft-- but talk to your tax professional first.

Question:  my victim loss amount is about $14,000 less than claimed.  Did they reduce everybody's loss by a certain amount, or was there a clerical error somewhere?  thx
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JG

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Reply with quote  #14 
Quote:
Originally Posted by jkline
FYI, according to the DOJ email, one can write the amount off, not as a capital loss but as theft-- but talk to your tax professional first.

Question:  my victim loss amount is about $14,000 less than claimed.  Did they reduce everybody's loss by a certain amount, or was there a clerical error somewhere?  thx


The amount they list is likely the spot price on the date of the bankruptcy.

As for your actual loss, I believe it would be the amount you paid, plus any direct expenses (such as shipping cost), minus any money you received back. So if you paid $14K more than they listed, that's (about) what you should be able to write off.

As for a theft loss, that is even more complicated now than the DoJ seems to realize: the theft loss tax deduction was eliminated for years after 2018 (so it would require amending a 2018 or earlier return, which can get a bit tricky). I've got a page at http://about.ag/BullionDirectTax.htm that has some information (with the reminder that I have no formal tax/accounting/legal training).

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jkline

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Reply with quote  #15 
Thanks JG.  It was $39k in cash.  Was credited with only $25.

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