GLOBAL BULLION EXCHANGE, LLC AND DIVERSIFIED INVESTMENT GROUP, INC.

Case Highlights

• Approximately 1,450 consumer clients involved in precious metals Ponzi scheme totaling $29.5 million
• Owner of Assignors prosecuted by federal government and sentenced to 151 days of incarceration

Case Narrative

Global and Diversified were involved in a nationwide scheme whereby consumers were induced to believe that they were purchasing precious metals held in personalized accounts.  Consumers paid millions of dollars to Global for the purchase of precious metals, however, Global did not actually own or acquire most of the precious metals.

DSI was appointed the Assignee for the Benefit of Creditors and with the Court’s approval, has utilized the internet to communicate and provide information/documentation to consumers, creditors, and other interested parties.

The Assignee prosecuted nine clawback recovery actions against certain individuals and/or entities who received commissions for theIR “sales efforts” when dealing with consumers, resulting in judgments in excess of $4.6 million.  In addition, the Assignee commenced litigation against the financial institution and individual banker who oversaw the Assignor’s banking activity.