According to the Denver Business Journal, 62-year-old James Burg has pleaded guilty to mail fraud and tax evasion in US District Court in Denver on September 12, 2013. The man, who formally lived in Fairplay, Colorado, allegedly ran a gold coin scam which generated an estimated $2.4 million in profits from 2007 to 2012. The man faces jail time and significant fines if he is found guilty of the crimes.
The plea agreement states that Burg used the alias Tim Burke to act as CEO to run the company, Superior Discount Coins and Gold Run Investments. The company allegedly sold gold coins to customers, but often did not actually send the product in return. While customers who complained about not receiving their coins sometimes received refunds in order to keep the scam quiet, many lost their investments. During that time, Burg allegedly kept much of the profits. Specifically, a release from a US Attorney states that Burg took money from customers “by means of materially false and fraudulent pretenses, representations and promises.”
Burg also did not pay federal income taxes between the years of 2003 and 2009.
Mail fraud can result in up to 20 years in prison and $250,000 in fines. Failing to file taxes can result in up to a year in prison and $250,000 in fines.
Have you been the victim of Texas coin fraud or a gold investment scam? You may wish to speak with a coin fraud attorney. Contact Voss Law Firm to schedule an appointment with one of our lawyers and to get answers today: 888-614-7730.