Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Florida Precious Metals Scam Golden Opportunity to Learn

  by    0   4

A Florida court recently found Robert Escobio and his companies, Southern Trust Metals and Loreley Overseas Corp guilty by the U.S. Commodity Futures Trading Commission (CFTC) of bilking customers in a precious metals scam. Escobio was accused of stealing $600,000 from 35 customers from July 2011 through May 2013. Over the time period, the defendant and his companies received more than $2.6 million from the plaintiffs, according to South Florida Business Journal.

Escobio, Southern Trust, and Loreley were banned from commodity trading and ordered to pay more than $2.1 million in penalties.

man handcuffs holding hundred dollar bills

Here’s how the scam worked: Southern Trust was a trading firm offering financing for customers to purchase physical metals. The firm solicited customers by phone and told them the metals would be held in London and Hong Kong depositories, according to the CFTC. Therefore, customers believed the company had physical possession of the metals, but that wasn’t the case at all.

As it turns out, Southern Trust never possessed, held titles, or delivered any of the precious metals they claimed to have. Instead, Southern Trust “transferred customer accounts through Loreley and then through accounts in the U.K.,” according to the CFTC.

The scam offers a great teaching opportunity for customers looking to buy gold and silver:

  • When buying precious metals for vault storage, make sure you work with a company that explicitly guarantees physical possession, either through delivery or storage.
  • Local coin dealers can help ensure physical possession, but if you’re planning to buy gold in a larger amount, you’ll want to work directly with a gold dealer such as SchiffGold.

Dealers like SchiffGold can acquire any bullion product at the best possible price in larger quantities. Shipping is easy, safe, and often free. Often we can beat the prices of your local coin shop because we don’t share the overhead costs of a brick-and-mortar retail space. More importantly, we deal only with reputable suppliers and storage houses. If you’ve bought precious metals from us, you can be sure it exists and you can take possession of it whenever you need it.

scam-2-sm

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

[Total: 0    Average: 0/5]

Related Posts

Gold Scammers Using “Affinity Fraud” Technique

Gold scammers are targeting Chinese-Americans, but similar techniques can be used to target and rip off other groups of people. The scam has most recently been reported in Maryland. According to CBS Baltimore, the Montgomery County Police Department reports at least one victim lost $20,000 to gold scammers targeting people of Chinese descent. [Total: 1 […]

READ MORE →

African Gold Scam Takes $70,000 from Michigan Credit Union

a businessman handcuffed holding cashLast week 63-year-old Kenneth J. Plonski was charged in a Michigan court for defrauding the Copoco Community Credit Union of more than $70,000. Plonski claims he was also duped by a “friend” into wiring cash to Africa to buy gold. However, Plonski claims he never received any African gold. The alleged scam is a classic […]

READ MORE →

Comments are closed.

close

Enjoy this blog? Please spread the word :)

Free Newsletter & Notification of Special Deals
RSS Feed
LINKEDIN
YouTube Channel
YouTube Channel
Google+
Google+
https://schiffgold.com/gold-scams/florida-precious-metals-scam-golden-opportunity-learn
Call Now