Tag - Fraud

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Friday, October 20 2017

ScotiaMocatta Put For Sale After Multibillion Money-Laundering Scandal

The world's oldest gold trader is for sale after a massive money laundering scandal may have terminally crippled one of the most iconic names in the business.

Canada’s Bank of Nova Scotia is exploring options for its gold business ScotiaMocatta, the Financial Times reported, which include a possible sale of Canada's most popular precious metals trader. Scotiabank made a decision to sell ScotiaMocatta following a massive money laundering scandal centered on a U.S. refinery that involved smuggled gold from South America. The ScotiaMocatta business, a mainstay in PM trading, is one of London’s main gold trading banks and is being sold by JPMorgan.

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Thursday, September 7 2017

CFTC sues California gold dealer Monex in fraud scheme

The U.S. Commodity Futures Trading Commission (CFTC) said on Wednesday it filed a civil lawsuit against California-based gold dealer Monex Deposit Co in what it called the biggest-ever retail precious metals fraud enforcement action brought by the regulator.

The CFTC alleges Monex, deploying high-pressure sales tactics, deceived thousands of retail customers who lost a total of $290 million in connection with illegal, off-exchange leveraged precious metals transactions.

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Saturday, August 26 2017

Gold smugglers take a shine to Japan

Customs officials are investigating what is apparently a case of gold smuggling, one that speaks to the growing level of sophistication among smugglers exploiting budget carriers' tendency to use the same aircraft for both domestic and international flights.

Some media outlets have also pointed the finger at China's wealthy. The argument goes that the rich, having lost confidence in the Chinese yuan and with investment in other assets becoming difficult, are turning to gold smuggling to move their wealth out of the country. They supposedly hire mules to carry the gold from China, as well as places like South Korea and Taiwan, into Japan, where the consumption tax increase has made it easy for them to pay off the carriers and bribe staff at Asian airports.

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Tuesday, August 8 2017

Payment in gold bullion banned under new law to combat tax evasion

Companies will no longer be able to pay employees their salaries in gold bullion in the first use of a new law designed to combat “morally repugnant” tax avoidance schemes.

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Thursday, July 13 2017

German police are searching for a stolen gold coin. It’s the size of a manhole cover and worth $3.9 million

Hundreds of special German police officers executed raids across several buildings across southern Berlin early Wednesday, nabbing four suspects in the hunt for a 220-pound gold coin valued at about $3.9 million. It was stolen from Berlin's Bode Museum in March, where it had been since 2010.

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Thursday, June 8 2017

Japan's underworld turns to gold for a quick buck

A series of robberies and smuggling cases in southern Japan suggest that the region has become a hotbed of underworld activity surrounding the lucrative gold trade.

"In years gone by, the 'yakuza' earned their living largely from extortion and protection rackets, but the new legislation has effectively eliminated those revenue streams," he said. "So they have been casting around for a new way of making a living, and the gangs that are dominant in southern Japan have clearly recognized the opportunities that lie in gold."

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Tuesday, May 16 2017

Men who stole $60,000 worth of gold while having a barbecue hit with $5,000 fines

Three men who stumbled across more than a kilogram of gold during a barbecue at a West Australian mine site, stole it, then bragged about it on Facebook have been hit with heavy fines.

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Saturday, May 6 2017

How Japan’s criminal gangs are making a fortune from gold bought in Hong Kong

Japanese customs detected a mere eight attempts to smuggle gold into Japan in the 12 months to June 2014, according to the Coordination Division of the Finance Ministry in Tokyo. Underlining the new-found appeal of the underground trade, that figure climbed to 177 cases the following year and had reached 294 incidents in the year to June 2016.

Gold has become a hot item in Japan since the government raised the consumption tax on goods from 5 per cent to 8 per cent in April 2014. Illegal imports are unlikely to dry up in the future as the government is committed to its plan to increase the tax to 10 per cent in the future.

In comparison, the consumption tax on gold in Hong Kong is zero, so it is significantly cheaper to buy the precious metal in Hong Kong and sell in Japan on the black market, avoiding the taxes.

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Tuesday, April 4 2017

Suspension of Warranting of Elemetal Refining

Effective March 31, 2017, 6:00p.m. Central Time (CT), Commodity Exchange, Inc. (“COMEX”or “Exchange”) will suspend registration (warranting) of the Elemetal Refining, LLC (ELEM) gold and silver brands (Brand Mark “ELEMETAL REFINING AND JACKSON IN A CIRCLE WITH A STYLIZED E AND M IN AN INNER CIRCLE”) for delivery against the Exchange’s Gold and Silver futures contracts.

As such, any unwarranted ELEM gold (100-troy ounce bars and kilo bars) and silver at Exchange-approved depositories will no longer be deemed, or reported as, eligible for registration.

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Saturday, April 1 2017

ATO declares war on gold scammers to recover taxpayer billions

The Australian Taxation Office is preparing to go to war with companies­ involved in alleged complex gold scams that have cost taxpayers more than $700 million in lost GST revenues, pledging to leave “no stone unturned” as it seeks to claw back funds and unravel­ the long-running saga.

The alleged fraud being targeted by the ATO involved criminal syndicates buying and selling gold and pocketing GST refunds by exploiting­ the different tax treatment of gold, depending on whether it was in scrap or bullion form.

Pure gold is treated by the ATO as currency, and it cannot be sold with the addition of GST, whereas scrap gold attracts a 10 per cent premium.

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Tuesday, March 28 2017

Massive 100 Kilogram Gold Coin Worth $4.5 Million Stolen From German Museum

German press has reported that thieves broke into Berlin's Bode Museum and made off with a massive 100-kilogram (221-pound) gold coin worth millions.

According to German media, the stolen coin is the "Big Maple Leaf", a commemorative piece issued by the Royal Canadian Mint in 2007. The three-centimeter (1.18-inch) thick coin, with a diameter of 53 centimeters (20.9 inches), has a face value of $1 million. By weight alone, however, it would be worth almost $4.5 million at market prices.

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Friday, March 24 2017

Inside a Chinese Coin Counterfeiting Ring

The photos in this gallery were taken inside a Chinese coin counterfeiting operation. This counterfeiting ring is suspected of putting thousands of fake coins onto the world and U.S. coin markets every month.

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Oregon teens used fake gold bars to scam people out of $

A pair of 17-year-old boys carried out a scheme using fake gold bars to scam people out of more than $50,000, according to police.

Investigators said the Bend teens bought artificial gold bars online that looked like the real deal. They then sold the bars as authentic to people in central Oregon, according to police.

Investigators described the suspects as "sophisticated" in using multiple ways to conceal their identities and scheme.

The teens identified people interested in buying gold through Craigslist and then set up meetings to make the transactions.

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Tuesday, February 21 2017

Shanghai Gold Exchange denies connection with fraudulent manufacturer

A Caijing report on Monday accused Boyuan Mining Co, a metal producer based in Lingshan, Henan Province, who used to produce gold-plated tungsten bars, has caused loss of more than 10 billion yuan (US$1.45 billion) during the past decade through fraud.

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Sunday, January 8 2017

SBU seizes certificates for 400 kg of gold from officials of one of Ukraine’s agriholdings

The SBU Security Service of Ukraine in a massive raid have seized 60 kg worth of gold bars and gold certificates for 400 kg of gold at the premises of the officials of one of Ukraine’s agricultural holdings.

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Saturday, December 31 2016

Is my gold safe? Day after heist, customers lay siege to Muthoot

A day after fake CBI officers struck the Muthoot Finance branch in Hyderabad, dozens of people thronged the place to know when they can get their precious yellow metal back.

The anxious people were greeted with two notices, one which is posted outside the Muthoot building on a rock and other near the stairs. It was written by the Muthoot Finance branch manager M Venkata Reddy on his letterhead and it was addressed to police insopector, RC Puram.

"The quantity of gold which has been stolen from Muthoot Finance on December 28, will be returned to the respective customers within 10 to 30 days. While returning, the gross weight of the item will be considered and based on customers requirement they can either opt to get equivalent money or gold pledged," the letter read.

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Friday, December 30 2016

Gold Smuggling Soars, Using Classic Tricks

The Korea Customs Service announced Thursday that gold smuggling has risen rather dramatically since 2011, with 99 cases last year worth 9.1 billion won ($7.5 million) in total value.

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Wednesday, December 28 2016

Gold scam a $610m hit to taxpayers as ATO tries to stop GST fraud

A national gold scam has cost taxpayers at least $610 million in lost revenue as the Australian Taxation Office struggles to stamp out criminal syndicates defrauding GST in the multi-billion-­dollar industry.

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Saturday, December 24 2016

High-quality counterfeit gold bars sold in Winnipeg and other Canadian cities, police say

If you're planning on buying gold bars anytime soon, Winnipeg police are advising extra caution after a series of "suspicious transactions" at locations in the city.

The transactions took place on Nov. 30 at a number of pawn shops and gold buyers, police said, involving the sale or pawning of counterfeit one-ounce gold bars.

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Monday, December 12 2016

Armed thieves steal €2.5 million in gold in central France

Armed gunmen are on the run after pinching 70kg in gold from an armoured van, according to reports.

The Loomis security van was robbed on Monday morning near central France's Lyon, reported the BFM TV news channel.

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