'IOU': Precious metals companies ordered to pay $146 million over missing American Silver Eagle coins 

A US court has ruled that two precious metals companies must pay nearly $146 million in restitution and penalties after more than 500,000 American Silver Eagle coins that vanished under their care. The firms, Argent Asset Group and First State Depository Company, owned by Robert Higgins, have been accused of orchestrating a "fraudulent and deceptive scheme" by promising to store the coins for customers but failed to do so.

The lost "treasure"

As per BBC, an investigation revealed that the coins, which were supposed to be held in vaults, could not be located. As part of the settlement, Argent Asset Group and First State Depository Company have been ordered to make compensation of $112.7 million and pay a penalty of $33mn.

The US Commodity Futures Trading Commission (CFTC), alleged that Higgins' companies operated "fraudulent silver leasing programmes" known as the Maximus Program and the Silver Lease Program between 2014 and 2022.

The CFTC stated that the firms "solicited and misappropriated at least $7 million in funds and silver from at least 200 customers" and also made "false and misleading excuses for why assets could not be withdrawn".

What are American Silver Eagle Coins?

American Silver Eagle coins are backed by the US government, with each coin guaranteed to contain at least one troy ounce (31.1g) of 99.9 per cent pure silver, according to the United States Mint.

Investigators discovered more than 500,000 American Silver Eagle coins and over 9,000 gold coins missing from customers' accounts. Instead of the coins, they found empty boxes with "IOU" slips that are used to represent customers' holdings, however, theycontained no assets.

The CFTC emphasised the severity of the misconduct and stated that appropriate enforcement actions were necessary.

"This kind of egregious behaviour merits the full weight of the Commission's enforcement authority."

In addition to the monetary penalties, the court ruling regarding the missing American Silver Eagle coins has also mandated the closure of the implicated firms, Argent Asset Group LLC and First State Depository Company LLC, reports Market Watch. Moreover, the owner, Robert Higgins, has been permanently barred from participating in the commodities industry.