A storage facility in the state of Delaware was at the center of a huge investigation after over $58 million in gold and silver went missing from the warehouse of a precious metals depository earlier this year.
Finally, after an FBI investigation and trial, Robert Higgins, the owner of the Precious Metals Depository has been found guilty of stealing millions in silver and gold from his customers and brought to justice.
Millions of Dollars in Precious Metals Went Missing
Last year, Kelly Campbell, working on behalf of the American government, was sent to the First State Depository Co. LLC storage house to investigate missing assets.
Campbell was sent there with a small team of U.S. marshals to check the contents of the warehouse, which, on paper, held over $140 million in precious metals such as gold and silver. Yet, to the surprise of the team, over half of the silver and gold was missing.
Customers Trusted First State Storage to Keep Their Savings for Retirement
According to records, over 2000 people stored their gold and silver assets in small safety deposit boxes at First State.
The customers stored their precious metals here in an attempt to bolster their 401(k) or IRA accounts. Due to federal tax laws, the precious metals needed to be stored in a secure place, and for the citizens of Delaware, First State seemed like a reputable place to do so.
Life Savings Gone in a Flash
Unknown to the customers, many would never reap the benefits of their savings, as the assets would vanish from the storage vault.
“Most of these investors were elderly people,” Campbell told The Philadelphia Inquirer. “They were investing their savings. It’s tragic.”
Hope Not Lost for All Retirees
While the case of the missing gold and silver dumbfounded Campbell and his team, they recovered around 1,000 of the boxes. This totaled $64 million, or just under half of the recorded amount.
Yet, another $58 million was unaccounted for. The boxes in which the gold and silver were supposed to be were mostly empty. Yet, some had a small amount of silver, and others contained paper notes, including poorly scribbled IOUs.
First State Under Forced to Pay Restitution
After a long string of customer complaints centered on missing gold and silver, the First State Depository was placed under investigation.
As of October 24, 2024 the investigation uncovered the owner of the depository to be at the heart of the deception. U.S. Attorney Weiss stated, “The jury found that Mr. Higgins defrauded his customers by repeatedly lying to and stealing from them over a 10-year period. Mr. Higgins used his customers’ gold and silver as if their precious metals were his own, and at the same time failed to declare and pay his fair share of taxes on his income. By the end of his scheme, over $50 million in customers’ precious metals was gone.”
Robert Leroy Higgins Brought to Justice
Based on the jury’s guilty conviction, Higgins now faces up to 20 years behind bars for the wire and mail fraud charges brought against him. Additionally, he will serve 5 years for each of the tax fraud charges,
Gold Hidden in the Home of Higgins
Higgins’ home was searched last summer after a federal court approved the warrant. The investigators found an unusual bag of gold coins above his bedroom ceiling.
The gold was worth approximately $72,000 and was a long way from the missing $58 million in precious metals.
No Paper Trail for Missing Assets
According to available records, the full amount of restitution to the customers who lost their life savings still hasn’t been paid.
Campbell explains why it’s difficult to trace the missing assets. He said, “When you are talking about coins or silver bars, when they’re missing, there’s no trail.”
First State Has Damaged the Industry’s Reputation
Unfortunately, the scandal surrounding First State has affected the trust of similar companies in the eyes of the public, according to others working in the same industry.
“We need more people to get onto people like him, because they are a thorn in our side,” said David Crenshaw, executive director of the Georgia-based National Coin and Bullion Association.
New Regulations Must Be Put in Place
Doug Davis, executive director of the Numismatic Anti Counterfeiting Association, said, “Depositories ought to be regulated by the state they are located in.”
Campbell believes: “There needs to be state-level regulation.” Thankfully, in this case justice was served and Higgins will serve time for defrauding his customers of their savings. IRS Criminal Investigation Acting Special Agent Amy MacNeely said, “Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes.”
