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WorldUS court imposes a $146 million fine for 500,000 missing silver coins

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US court imposes a $146 million fine for 500,000 missing silver coins

Almost $146 million (£115 million) has been ordered to be paid by two precious metals companies by a US court after more than 500,000 American Silver Eagle coins went missing.

A “fraudulent and deceptive scheme” is allegedly being undertaken by the businesses and their owner Robert Higgins.

Allegedly, they had pledged to save the coins for clients.

However, the coins were nowhere to be seen when investigators went into the vaults that were supposed to contain them.

Argent Asset Group, a precious metals trader, and First State Depository Company, both owned by Mr. Higgins, were ordered to make restitutions totaling $112.7 million and pay a $33 million penalty as part of the court settlement.

US financial watchdog the Commodity Futures Trading Commission (CFTC) said Mr Higgins’ companies ran “fraudulent silver leasing programmes” from 2014 to 2022.

These were known as the Maximus Program and the Silver Lease Program.

Through the schemes, the companies “solicited and misappropriated at least $7 million in funds and silver from at least 200 customers,” the regulator said.

The firms also made “false and misleading excuses for why assets could not be withdrawn”, according to the CFTC.

The regulator said that over 500,000 American Silver Eagle coins and more than 9,000 gold coins were missing from customers’ accounts.

In their place, investigators said that they found “‘IOU’ slips in empty boxes marked to indicate a customer’s account, yet containing no assets.”

“This kind of egregious behaviour merits the full weight of the Commission’s enforcement authority,” the CFTC added.

Mr Higgins did not immediately respond to a request from the BBC for comment.

The weight and purity of American Silver Eagle coins are guaranteed by the US government.

Each coin contains at least one troy ounce (31.1g) of 99.9% pure silver, according to the United States Mint.

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