By sunrise the next morning, all of the local news channels were running the story and a lot of details on the day to day operation of Goldfinger Coin & Bullion Sales were starting to appear on index pages across the Internet.
Most of the California television and newspapers focused on the fact that James Fayed and his estranged wife were going through a messy divorce. The early reports talked about court documents which had shown around $12 million in assets up for grabs in the divorce.
Late Friday, August 1, just days after losing Pamela, the news broke that James Fayed was in Federal custody. It is important to note that he has not been charged with a crime relating to Pamela's murder. James Fayed as the operator and signatory on GoldFinger/e-bullion bank accounts had been arrested for a violation of 18 U.S.C. § 1960, which is operating an unlicensed money transmitting business.
It appears from the documentation that Fayed's current money transmitting charge stems from e-bullion acting as third party receiver for alleged ponzi funds amounting to something like $20 million.
This charge is identical to the one received by Douglas Jackson of e-gold. (This is one of the charges he "plead guilty to" in the recent e-gold plea agreement.)
After Jim Fayed's arrest, court documents began to surface on the Net such as restraining orders, bail documents, indictments and more. One web site even uncovered that James had gone bankrupt in 1997 and it seemed that all the dirty laundry was now coming out.
Almost all of this information either "by the piece" or looking at the "big picture," paints a grim picture for the future of e-bullion and Goldfinger Coin & Bullion Sales. The e-bullion web site has been reportedly offline for "maintenance" since August 5th. http://www.e-bullion.com However, the Goldfinger Coin and Bullion web site is still live and operating. http://www.goldfingercoin.com
An associated press story tried to make a connection between e-bullion, James Fayed and a federal fraud investigation, but no reliable source could confirm that information.
After Jim's arrest, the press had a field day with the information regarding the search of his residence.
"During the search of defendant's residence, officers also found approximately $60,000 in cash wrapped in plastic material; approximately $3,000,000 in gold; and approximately 31 firearms, including one with a long-range night vision scope, along with thousands of rounds of matching ammunition. The cash and gold were seized." [3]
The firearms were legally owned and left at the residence.
James Fayed's bail which was originally set at $500,000 but he was not released. The government came back and argued further for his detention and today he still sits in a cell. How? The government has presented a reasonable argument to the court that this defendant is a flight risk and a danger.
"...this Court can and should conclude that defendant, at this time, has every reason to flee, and that no condition or combination of conditions can assure his appearance in this case." [4]
Why? Among other reasons, the vehicle used in Pamela's murder was caught on video and the tag traced to an Avis rentals very near to the e-bullion office. The American Express card used to rent the vehicle was not only in the name of James Fayed, but the exact card was found in his wallet during a search of his residence on August 1st.
"Pamela's murderer left the crime scene in a red SUV that was captured on surveillance video, along with its license. The license was traced to Avis car rentals in Camarillo, not far from defendant's business. The vehicle had been rented from Avis on July 3, 2008 using an American Express card issued to defendant and GCB. An American Express credit card with the same account number was found in defendant's wallet during a search of his residence in the days following Pamela's murder." [5]
It's is important for readers to note that James Fayed has not been charged in connection with his wife's murder and not been convicted of any crime. In America, he remains innocent until proven otherwise. It is also very important to understand the full extent of the government's investigation into Goldfinger/e-bullion. From the court documents we know that the original indictment was returned on February 26, 2008, (6 months ago) under seal, and as of today, the FBI is still investigating Goldfinger Coin & Bullion Sales and e-bullion.
Take a look at the creative way investigators gained access to the financial accounts on the Goldfinger/e-bullion accounts...
We can make a guess and say that around January or February of 2008 there were likely numerous signed complaints relating to lost funds from this large ponzi which was accepting funds through e-bullion. We can also assume since they became the target of the investigation that most of the complaints pointed a finger directly at the Goldfinger (GCB) bank accounts and e-bullion digital gold accounts. How did the government get access and control over these private statements without sending the subpoena right to James Fayed?
In October of 2007, James Fayed filed to divorce his wife Pamela. In April of 2008 a court appointed receiver was instructed to "examine and secure" the gold holding and other assets under Jim's control at their business location. This was routinely being done for the purpose of the divorce settlement.
"April 2008, defendant provided business records to Pamela's forensic accountants, only after he was ordered to do so after resisting for months, in order to allow the accountants to ascertain the value of the marital estate and to provide information to set spousal support." [6]
Now.... right here...this is where the plot thickens. It seems that while the records were at Pamela's accountants, the government subpoenaed them through the accounting firm gaining access and copies to help build their criminal case against James.
"At that time, the government's investigation into defendant's business affairs remained underway and the government subpoenaed the accountants to produce the records they had obtained from defendant." [7]
From this time in April when the first sealed indictment came back, it is not clear that James Fayed was ever aware of any government investigation right up to the point he was arrested. However, it's clear the the accountants blabbed to Pamela about the subpoenaed records and Pamela, through her attorney, offered her assistance to the government.
"On or about June 24, 2008, Pamela's then defense counsel advised the government that Pamela wanted to cooperate in its investigation." [8]
James is not talking and that's probably the smartest thing he has done yet.
"The government argued and continues to argue that defendant's role as the primary suspect in Pamela's murder makes him a serious risk of flight and a danger to others, whether or not Pamela was murdered in order to obstruct the present case. The facts show that defendant had become desperate. He was likely concerned that Pamela would cooperate and be a witness against him in this case." [9]
As James sits in custody, the police and FBI are now searching for his brother Anthony Fayed and have labeled him a "person of Interest" in Pamela's murder. Anthony Fayed, is a 53 year old convicted felon, ex-convict and drug abuser. He is now believed to be in possession of a handgun and on the run. One court document and separate article describes Anthony as being proud of his close connection to the violent white supremacist prison gang known as the Aryan Brotherhood (AB) or "The Brand." Anthony is also currently being sought for an outstanding warrant on a previous legal matter.
Before her murder, Pamela had petitioned the Ventura County Superior Court in California for a restraining order against Anthony Fayed and was denied because of "insufficient facts."
There are many other e-bullion problems that have not yet made it to the front page. Victims of yet another ponzi scam using e-bullion digital currency called "Invest Manager," which apparently folded some time ago, are looking for their money back. These victims filed a class action suit against e-bullion believing that the proceeds may still be stored in e-bullion accounts. Lawyers in the suit stated they had some degree of success and cooperation from e-bullion on the location of scam funds.
"Invest Manager" was a typical HYIP (High Yield Investment Program) online ponzi scam promising 12 percent return a week. Dozens if not hundreds of these schemes are still in operation today and it is easy to find them. Most people consider them illegal, but digital currency operators love the income generated by the tiny mass payments. To locate some of the most popular scams operating today, Google "HYIP e-bullion" in your browser and have a long look at all the "investments" and the interesting ways they are marketed to greedy victims. It's very common to find hundreds of HYIP "investment" ponzi scams at any one time operating across the Internet and accepting digital currency. Most scams now appear to be dropping e-bullion in favor of Liberty Reserve.
Meanwhile, the class-action lawsuit filed in Ventura County, which does not accuse e-bullion of any wrongdoing, is seeking as much as $5 million dollars. In classic 'Internet' fashion, the people behind Invest Manger have not been identified, nor has its headquarters or place of incorporation.
There has been no e-bullion reply to the "Invest Manager" legal complaint, which was filed May 20. After the legal notice of the suit ran for a month, the judge can now determine how much the e-bullion owes and give the legal OK to retrieve the victims' funds back from e-bullion (good luck).
Yet, another buried topic is the seizure of e-gold accounts in April of 2007. The massive government action against e-gold at that time included the seizure of 58 e-gold accounts including the popular 1MDC account, several large exchange agents and the account of The Bullion Exchange. http://www.thebullionexchange.com The web site still has some text information regarding the "money transmitter" violation and legal action.
"The seizure order, under which the United States Government took control of the contents of The Bullion Exchange's bank account is the subject of a civil action filed in the United States District Court in Delaware. The funds are being securely held by the judicial system pending a resolution of the civil litigation. The allegations contained in the complaint, contend, inter alia, that The Bullion Exchange failed to register, or secure a license to act as a money transmitter (in violation of 31 C.F.R. Section 103.11(uu)(5)(1)); additionally, the complaint contends that The Bullion Exchange failed to obtain a business license in the State of Delaware, violating 5 Del. Code Section 2303. The Bullion Exchange vehemently denies the allegations and has challenged all of the accusations contained in the civil complaint."
Most casual observers are not aware of this but The Bullion Exchange was owned and operated by the Fayeds through Goldfinger. [a "source who was close to the Fayeds" explained this in great detail to me]
"The Bullion Exchange was just a part of Goldfinger. They deliberately used a different address and phone number. The purpose of the bullion exchange was to make it easy for people with money in e-gold to move it to e-Bullion. That's the sole reason the Fayeds set it up. Pam pretty much ran the bullion exchange herself, it was the one little piece of the business Jim let her have control over."
Here it seems is yet another government action pending against the Goldfinger business.
Is e-bullion done, finished and over? You tell me...James Fayed's arraignment is set for August 18th.
[1] http://www.latimes.com/...story
[2,3,4,5,6,7,8,9] http://www.dgcmagazine.com/blog/?p=202
