These new court documents prove that e-bullion had plenty of money and metal on hand and in their accounts. e-bullion was very liquid and the company was NOT insolvent as many in the industry, including those operating the GDCA (former GDCA?) had suggested. $24 million in liquid financial assets is more than enough to cover the value of all outstanding digital units.

Let’s clear up some more false rumors before we get into the court document details.

1. Contrary to earlier allegations, Mr. Fayed did not personally rent the vehicle; the vehicle was rented by the business on a month-to-month basis through a corporate credit account.

2. The government also alleged that Mrs. Fayed sought to cooperate with the government on or about June 24, 2008. District Court Judge Otis D. Wright II, however, struck that statement from the prosecutor’s pleadings as unfounded.

3. The government has also referred to over $20 Million in Ponzi scheme proceeds going through defendant’s accounts, however, there is no evidence that Goldfinger or Mr. Fayed were engaged in a so-called Ponzi scheme.

4. The large amount of gold and silver bullion reserves and bank accounts seized by federal law enforcement demonstrates that e-Bullion.com has sufficient reserves to cover its depositors.

The big question everyone was asking over the past few weeks was….What did the government seize?  Now we know.

EVERYTHING THEY COULD FIND for a total of $24 million.

The FBI and IRS seized bank accounts, business records, property, and precious metals holdings from Goldfinger’s vaults, including gold and silver bullion worth approximately $24 Million that is held for the benefit of thousands of e-Bullion.com depositors.”

Since e-bullion began the company has had just over 466,000 customer accounts.  That is total accounts, funded or not, since day one and you may compare that amount to e-gold’s over 5 million accounts, Webmoney with over 5 million, and finally GoldMoney comes in at over 40,000.

At the time of the original indictment in February of 2008, the prosecutor Mark Aveis made a dire prediction in court papers which has come true today.  In sworn documents, he predicted what would happen to e-bullion’s online business if that sealed indictment ever became public as it just has,

02/08 “Similarly, disclosure of this indictment would most certainly cause disruption, if not a complete shut-down, of the relevant Internet sites and would, accordingly, likely destroy any possibility of a proactive, ongoing investigation of very important targets.”

New court documents show his prediction has come to pass,

08/08 “…the FBI and IRS executed search warrants and seizure warrants that caused a complete shut-down of Goldfinger and e-Bullion.com, and all relevant Internet sites.”

If you had funds in an e-bullion account, there is NO reason to wait by your mailbox for the check to arrive. That is a long way off. It is likely you will be filing a claim and waiting until after the trail a receiver could be the one sending out checks for pennies on the dollar. Also be prepared to show a ‘source of funds’ for that money, the government is NOT in the habit of sending the proceeds of crime back to the crooks. That tugging you feel at your pocket…that’s the long arm of the law.

The hundreds of HYIP scams now in operation accepting e-bullion, you can just kiss those funds goodbye.

Cheaters justice. I really hate those scams.

Also, I’m now told by some people that the the FBI may even be legally scalping a percentage of the seized assets although I’m not sure exactly how that would work.

What is going on now?

The defense has requested some funds be released from the government seized loot.

“…an order to immediately release $300,000 in order to preserve exculpatory evidence contained within the Internet servers 2 and computer network system operated by defendants and the 3 business entity e-Bullion.com …Approximately $100,000 per month is needed to pay for server rack space, security software, bandwidth and personnel to maintain defendants’ Internet servers and computer network system.”

Jim’s lawyers are asking for the release of $300k to cover the continuing operation of the businesses. (to keep the servers alive)  They are telling the court that on these servers is evidence which the defense might use to prove Jim’s innocence and that information needs to be allowed to survive throughout his trail and persecution….sorry prosecution.

“…evidence is at a risk of loss due to the sudden and unjustified shutdown and seizure of defendants’ lawful business. The exculpatory evidence that will be lost when the Internet servers and computer network go down is the evidence needed by the defendants establish their innocence.”

Finally, there is the ever present reality that possible charges relating to the murder could be forthcoming from the State or Federal Government.

Is there a bright side of the story or silver lining to any of this?

In fact there could be, Goldfinger and Mr. Fayed may not even have been the actual targets of the longstanding FBI and IRS investigation.

On February 26, 2008, when the original sealed indictment was issued, the prosecutor, Assistant United States Attorney Mark Aveis, told the US District Court magistrate:

“…The indictment represents one of several steps in a long-term investigation by the FBI and IRS regarding fraud, money laundering, and terrorist financing…”

Despite the prosecutor calling e-bullion the ponzi, there is much evidence to suggest that the larger government case is focused on an old matter now being sorted out in the court. Can e-bullion be labeled a ponzi if it was just the company receiving funds on behalf of an account holder?

I think the ponzi and terror financing case they are all referring to is that of Abdul Tawala Ibn Ali Alishtari, a/k/a “Michael Mixon and “Flat Electronic Data Interchange” or F.E.D.I.  This appears to have been a ponzi scheme run by “Michael Mixon” and associates in which they used the e-bullion and Goldfinger accounts to receive their scam proceeds. Here is some background on that case, and some documents from the files that show these crooks may have only been using e-bullion to receive their ponzi funds.  There is NO evidence yet that e-bullion ever operated a ponzi.

Abdul Tawala Ibn Ali Alishtari, a/k/a “Michael Mixon and FEDI

From approximately 1998 through 2004, Alishtari committed a massive fraud in which he stole millions of dollars from his victims through the operation of a loan investment program he called the “Flat Electronic Data Interchange” (“FEDI”). FEDI was purportedly a high-yield investment scheme, in which Alishtari falsely promised his investors that, in exchange for their investment, they would receive high, guaranteed rates of return, according to the indictment.

NEW YORK—Michael J. Garcia, the U.S. Attorney for the Southern District of New York, Mark J. Mershon, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the New York City Police Commissioner, announced today the arrest of Abdul Tawala Ibn Ali Alishtari, a/k/a “Michael Mixon,” on attempt charges of terrorism financing, material support of terrorism, and international money laundering, as well as additional charges of conspiracy and wire fraud. According to the five-count Indictment, which was unsealed in Manhattan federal court earlier today. Alishtari, a 53-year-old resident of Ardsley, New York, facilitated the transfer of $152,000 with the intention that it be used in Afghanistan and Pakistan to help train terrorists. Specifically, in the latter half of 2006, Alishtari accepted payment to discreetly transfer these funds, believing that they were earmarked for Pakistan and Afghanistan. Alishtari believed that the funds were being sent abroad to support a terrorism training camp in Afghanistan by funding the purchase of equipment such as night vision goggles. One of these transfers, which is also the subject of the international money laundering charge in the Indictment, relates to Alishtari’s transfer of $25,000 from a bank account in New York to a bank account in Montreal, Canada, with the intent that the funds be used to provide material support to terrorists. *http://newyork.fbi.gov/dojpressrel/pressrel07/terroristfinancing021607.htm

http://www.osc.gov.on.ca/Enforcement/Proceedings/SOA/soa_20030611_anderson-et-al.pdf

If there was ever any question to whether e-bullion had previously cooperated with the authorities on legal subpoena’s Mr. Fayed’s attorney is desperately trying to dispel that myth. This new court document offers up over two dozen agents of the government that e-bullion worked with providing requested account information.

There is a huge amount of additional information, history and data to be discussed regarding e-bullion. We will be detailing more documents, data and updates in this month’s issue of DGCmagazine.com so please look out for the new monthly issue around the 27th of August or sooner.