A US court has mandated the payment of nearly $146 million (£115 million) by two precious metals companies as a result of the mysterious disappearance of more than 500,000 American Silver Eagle coins. The companies, owned by Robert Higgins, have been accused of orchestrating a “fraudulent and deceptive scheme” where they promised to securely store the coins on behalf of customers. However, when investigators inspected the designated vaults, the coins were nowhere to be found. In accordance with the court settlement, Argent Asset Group and First State Depository Company, both under Higgins’ ownership, must provide restitution amounting to $112.7 million and pay a penalty of $33 million.
The Commodity Futures Trading Commission (CFTC), a US financial watchdog, disclosed that Higgins’ companies conducted “fraudulent silver leasing programs” between 2014 and 2022, namely the Maximus Program and the Silver Lease Program. These initiatives involved the solicitation and misappropriation of funds and silver from approximately 200 customers, amounting to at least $7 million. The CFTC also revealed that the firms provided false and misleading explanations for the inability to withdraw assets. Furthermore, investigations uncovered the absence of over 500,000 American Silver Eagle coins and more than 9,000 gold coins from customers’ accounts, which were substituted with “IOU” slips placed in empty boxes marked to represent customers’ holdings.
The CFTC emphasized that such flagrant misconduct warrants the full extent of its enforcement authority. As of now, Mr. Higgins has not responded to the BBC’s request for comment. American Silver Eagle coins are backed by the US government, guaranteeing their weight and purity. Each coin consists of at least one troy ounce (31.1g) of 99.9% pure silver, as specified by the United States Mint.