Global Bullion Exchange Fraud - There was no gold - Confessions of a Gold Scammer

Think you're buying actual gold and not paper? Better think again. Unless you physically take ownership of your metals it isn't safe ANYWHERE!

I actually heard about this on the local radio. The story on the radio said that they had "cold callers" calling 200 people a day by targeting wealthy homeowners after looking for large estate properties on Google Earth.

Confessions of a Gold Scammer

The Global Bullion Exchange scam continued on for years, unnoticed by authorities, without prosecution.

The fraud used standard tactics which gold scam and silver scam artists often utilize: playing upon investor greed and investor fear . Greed By offering “leverage accounts” investors were sold via greed. They were told that by utilizing additional financing to buy more metals, they could then see more upside and higher returns on their investments.

A vast majority of the supposed gold and silver which the Global Bullion Exchange sold investors was never purchased in the open market, this created a ponzi-like business structure which was destined to collapse and fail.

Red Flags Investors in the Global Bullion Exchange had difficulty both selling their “investments” and or taking physical delivery of their holdings. Most investors were first contacted by outbound boiler room sales calls utilizing high pressure sales tactics. The company offered “leverage accounts” which is always a red flag for high profit dealer sales vehicles. Reader beware for there are countless dealers in business today who still play upon investor ignorance and eagerness.

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Investors Lost $29.5 Million

The South Florida company had a grand name — Global Bullion Exchange — and boasted it was a leader in the precious metals industry.

Hundreds of customers from North Pole, Alaska, to Miami — many seeking a safe investment harbor in uncertain economic times — sent the company money so an advertised "team of experts" could guide them through the gold and silver markets.

But when the Lake Worth-based company closed overnight, its books showed that at least 1,400 clients were out about $29.5 million. Some people saw their retirement nest eggs wiped out.

...Global Bullion Exchange, which had offices spanning South Florida, operated in a niche largely devoid of government regulation: the spot market of precious metals. That's when people buy actual gold or silver rather than just trade them on paper. In the case of Global Bullion Exchange, many customers asked the company to store their precious metals at a secure location until they decided to sell them.

Source

One group that may have profited handsomely from Global Bullion Exchange was its sales force. In 2007, the business had gross receipts of $1.55 million and of that, $1.21 million was paid out as sales commissions. Only $149,000 went for the purchase of precious metals, tax returns show.

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There are audio recordings of their sales force using high pressure techniques as I heard them on the radio spot, but can't seem to find them.

There are other companies as well that have been busted - this isn't the only one.

Found the video on Good Morning America.

This is the story with audio recordings.

GMA Video - Confessions of a Gold Scammer

Originally posted by Julie Washington
Most investors were first contacted by outbound boiler room sales calls utilizing high pressure sales tactics.

I've never understood why people even talk to telemarketers (of any company).
The trick, if you can call it that, is hanging up.

The typical telemarketer call should last about 3 seconds.
"Hello, this is Sarah from..."
CLICK!

You would listen to a total stranger give you a directive on spending your money on something you have not seen?
Pure foolishness. Buying gold is very easy as is silver. Just go to the local coin store or even a pawn shop and buy the real thing.
You will be separated from your money yes...but you will walk out with real pure gold or silver bullion. It is best to buy US coined silver such as halves, and silver dollars.
Never listen to a telemarketer. Never read an advertisement in the mail, and ignore everything on the TV which is without a doubt. 99% lies. Unless of course you want to be scammed.....
DH

Never, EVER, part with your money because some unsolicited salesman or woman promises you the moon. The operative word is UNSOLICITED, as in, you didn't find them, they found you.

My husband day trades, so we get a great deal of unsolicited offers in the mail and on the phone, promising unrealistically high returns for a special, secret investment that "few people" know about. LMAO!

The way the world really works is, if it is a true cash cow, they wouldn't need to call you or send you slick brochures in the mail. All the big money players would jump all over it and keep everybody else locked out.

It is usually elderly people who are suckered into these scams, because most of them grew up poor and slowly grew their nest eggs. They don't realize that the biggest crooks are at the top of the socioeconomic ladder, and tend to believe what they are told by these flim-flam men.

Bottom line: If they have to come to you promising a fabulous return on your investment, you are going to lose your money and never see a dime of it again, even if the criminals are caught and prosecuted.

Its amazing I work with investment angels and growth companies and some of the smartest men I have met have been swindled at some point. People get blinded by their egos and greed and it goes on because most are too embarrassed to admit they got screwed over.

It's sad how gullible some people are.

Usually these con men start with family and friends and then spread out from there.

I still get emails from by brother in law who thinks that if he forwards an email to 100 people he'll win a new I Phone or something stupid like that. Come on this guy is 45.

...Global Bullion Exchange, which had offices spanning South Florida, operated in a niche largely devoid of government regulation: the spot market of precious metals. That's when people buy actual gold or silver rather than just trade them on paper. In the case of Global Bullion Exchange, many customers asked the company to store their precious metals at a secure location until they decided to sell them.

This cracks me up. "We aren't like people who only buy and sell little pieces of paper. We're the real deal. We only sell you actual physical gold...and we'll keep it safe for you, right here. See, this little piece of paper proves it."