You have permission to edit this article. A jury in U.S. District Court in Austin on Oct. 4 convicted Charles McAllister, the former CEO and owner of the Austin-based precious metals firm Bullion Direct Inc., of two counts of wire fraud and one count of engaging in a monetary transaction with criminally derived property.. McAllister … Low 54F. The Court is also considering entering a $16,186,212.56 monetary judgment against McAllister that represents the amount of proceeds obtained directly or indirectly from the defendant’s alleged scheme. And the elephant in the room: $16M of restitution from the criminal lawsuit. Judge Yeakel also ordered that McAllister be placed on supervised release for a period of three years after completing his prison term. Notifications can be turned off anytime in the browser settings. Late last week, Charles McAllister (former CEO and owner of the once-popular Bullion Direct website), was convicted in a five day trial by a federal jury for both money laundering and defrauding customers out of millions of dollars. A policy with BDI was to only communicate through emails. CHARLES MCALLISTER, § [Vio: 18 U.S.C. “Today’s sentence should send a clear message to those who seek to lie, cheat and steal from others for their own financial gain,” FBI Special Agent in Charge Christopher Combs stated. For the best experience on our site, be sure to turn on Javascript in your browser. At SD Bullion, we believe in doing business the old-fashioned way. IRS-Criminal Investigation Special Agent in Charge Goss said the sentencing of Charles McAllister demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. Interestingly, it shows that they owe state income tax from 2016-2019. Sentencing is scheduled for 9:00am on December 19, 2019, before U.S. District Judge Lee Yeakel. AUSTIN, Texas — An Austin man was convicted of federal wire fraud and money laundering charges in connection with a scheme to defraud customers out of millions of dollars, federal investigators said on Friday. “I am pleased that this scammer was brought to justice. Winds NNE at 10 to 15 mph.. Clear skies. Instead of buying the precious metals with the customer’s funds and storing customer metals, McAllister spent customer property on BDI corporate expenses, on other investment activities, and for his own personal use and benefit. At least it will give us something constructive to do. Instead, McAllister used the money meant for the precious metals and spent it on BDI corporate expenses, other investment activities and for his own personal use and gain. 15-10940 in the U. S. Bankruptcy Court, … The Department of Justice said from Jan. 2009 to July 2015, McAllister orchestrated a scheme that falsely represented that the funds given by customers were used to purchase precious metals on the customers' behalf, and that they either shipped directly to the customer or were stored in BDI's vault. RELATED: Owner of Austin's Bullion Direct Inc. indicted on wire fraud, money laundering charges. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. Federal Reserve Balance Sheet to $40 Trillion, Silver and Gold Poised as Pandemic Morphs Into Major Financial Crisis, More Stimulus Coming for Gold and Silver Prices, Gold & Silver Stabilize After Stimulus Turmoil. A jury in U.S. District Court in Austin on Oct. 4 convicted Charles McAllister, the former CEO and owner of the Austin-based precious metals firm Bullion Direct Inc., of two counts of wire fraud and one count of engaging in a monetary transaction with criminally derived property. Late last week, Charles McAllister (former CEO and owner of the once-popular Bullion Direct website), was convicted in a five day trial by a federal jury for both money laundering and defrauding customers out of millions of dollars. Our nation-wide commitment to reducing gun crime in America. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion. Think of it as a one stop shop for all things CM. Agents with the FBI, IRS Criminal Investigation and the Texas State Securities Board conducted this investigation.