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An interesting development in the Rust Rare Coin Silver Ponzi case

UtahCoinUtahCoin Posts: 5,366 ✭✭✭✭✭

One investor stands to regain most of his investment by helping the FBI.

https://documentcloud.adobe.com/link/track?uri=urn:aaid:scds:US:8a181722-e812-4176-acce-ff8e36c73bf8

I used to be somebody, now I'm just a coin collector.
Recipient of the coveted "You Suck" award, April 2009 for cherrypicking a 1833 CBHD LM-5, and April 2022 for a 1835 LM-12, and again in Aug 2012 for picking off a 1952 FS-902.

Comments

  • AUandAGAUandAG Posts: 24,893 ✭✭✭✭✭

    synopsis please?

    bob :)

    Registry: CC lowballs (boblindstrom), bobinvegas1989@yahoo.com
  • AlexinPAAlexinPA Posts: 1,458 ✭✭✭✭✭

    Very interesting. Thanks for posting it.

  • UtahCoinUtahCoin Posts: 5,366 ✭✭✭✭✭
    I used to be somebody, now I'm just a coin collector.
    Recipient of the coveted "You Suck" award, April 2009 for cherrypicking a 1833 CBHD LM-5, and April 2022 for a 1835 LM-12, and again in Aug 2012 for picking off a 1952 FS-902.
  • BillDugan1959BillDugan1959 Posts: 3,821 ✭✭✭✭✭

    The article linked makes no mention of the investor who stands to regain his money by working with the prosecutors.

  • RogerBRogerB Posts: 8,852 ✭✭✭✭✭
    edited May 16, 2019 2:11PM

    @UtahCoin said:
    One investor stands to regain most of his investment by helping the FBI.

    Oops -- didn't see the real lawyer's post, to which I defer. :)

    Uh...nope. The Costanzos agreed to pay to the Receiver essentially all of the money they had gotten in refund from Rust. This places them on the same level as all other creditors, and will likely reduce the total they eventually receive in settlement.

  • BillDugan1959BillDugan1959 Posts: 3,821 ✭✭✭✭✭
    edited May 16, 2019 2:08PM

    @SanctionII Thank you. I would have to read that motion five times or more to glean that - and I have no dog in this hunt. Thank you.

  • HemisphericalHemispherical Posts: 9,370 ✭✭✭✭✭

    Oh the tangled web that was weaved those many years will take many more years to untangle and to reveal... what?

    I do hope all those affected are made whole but that assumes all monies are recovered to include the phantom ponzi monies. So it will be impossible for everyone to receive 100%.

    Now the recovery and whatever scraps are found must be fought for.

    So sad... caused by greed by multiple actors.

    I’m going to find something much more fun, like the tax code on shell fish harvesting or something.

  • RogerBRogerB Posts: 8,852 ✭✭✭✭✭

    International migratory turtle agreements are also a fun read !

  • JustacommemanJustacommeman Posts: 22,852 ✭✭✭✭✭

    @BillDugan1959 said:
    @SanctionII Thank you. I would have to read that motion five times or more to glean that - and I have no dog in this hunt. Thank you.

    He is the man

    m

    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • ARCOARCO Posts: 4,429 ✭✭✭✭✭
    edited May 16, 2019 4:51PM

    @SanctionII said:

    In the end, the investor/creditor (who invested over $3,000,000.00 with the bad guy) will stand at the back of the line with other likely unsecured creditors to receive payment of monies from the Receivership assets remaining after payment of Receivership fees and expenses, secured creditors and priority unsecured creditors are paid first. In these types of cases the unsecured creditors usually end up with no distribution, or a distribution of a few cents on the dollar.

    Yes, In the end, the Constanzo's really lost the same as the other unsecured investors. the only difference is that they received 4.28% now, instead of some months or years in the future.

    Who knows how much will be clawed back, but given that the ponzi went on for so long and involved up to 200 million dollars, most of that money is long gone. It would just be heartbreaking to work and save for so long to see it all evaporate like that.

    There was another investor who wired 1.6 million into the ponzi two hours before Zions bank was notified to close access to the Rust Coin silver pool. That investor's money is in limbo at Zions Bank and the receiver is trying to claw it all into the receivership control. OUCH.

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    @SanctionII... Thank you for your clarifying posts....These things become a real tangled mess, and, from what I can see, the only real winners are the Receivers, attorneys and trustees....I use the term winners loosely, since they are being paid for their work....Cheers, RickO

  • CaptHenwayCaptHenway Posts: 32,632 ✭✭✭✭✭

    Without mentioning any names, there was a large gold dealer in Florida who went bad a few years ago. I remember hearing that the bankruptcy court wanted other dealers who had sold him stuff and gotten paid for it in the six months (?) prior to the bankruptcy to send the payments back but no, you don't get your gold back.

    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • kbbpllkbbpll Posts: 542 ✭✭✭✭

    The timing on that Zion bank deposit seems suspicious. That's almost 1% of the total alleged fraud. It's like they waited for a bigger pot of cash before yanking the plug.

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