Bill Hionas caught in Precious Metals Scam.....
06-21-2010, 06:34 AM
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Bill Hionas caught in Precious Metals Scam.....
Metals company owner sued for $29.5 million in missing funds
Investors out millions when Global Bullion Exchange shut down
By Jon Burstein, Staff Writer
5:11 p.m. EDT, June 19, 2010
The founder of a South Florida precious metals company systematically defrauded clients who are out at least $29.5 million, according to a lawsuit from the attorney in charge of recouping the funds.
The case against Jamie Campany, the former owner of Global Bullion Exchange, is part of a flurry of lawsuits filed this month as the search for customers' missing millions intensifies. The business shuttered its Lake Worth headquarters overnight in December, offering many clients no explanation as to what happened to their money.
Customers of Global Bullion Exchange, which had five South Florida offices, believed they were buying gold and silver that would be stored at a secure location until they wanted to sell the metals. Such transactions are not regulated by the federal government, leaving companies like Global Bullion Exchange free to operate with little, if any, regulatory oversight.
Global Bullion Exchange — which has filed the state court equivalent of a Chapter 7 bankruptcy case — is now under the control of attorney Daniel Stermer. Stermer alleges in a Miami-Dade Circuit Court lawsuit against Campany that the business sought out elderly customers as it "engaged in deceptive, unconscionable and/or unfair business practices and acts."
Campany's attorney, Christopher Bruno, said his client has been cooperating with Stermer in an attempt to recover clients' funds. He declined further comment on the lawsuit.
The state Office of Financial Regulation has an open investigation into Global Bullion Exchange based on "numerous complaints," said Flora Beal, an agency spokeswoman. She said she could not discuss the inquiry.
Tax returns for the company's first two years — 2007 and 2008 — show that most of the money raised by the company went to brokers' commissions. A Sun Sentinel investigation found that of the 20 clients listed as being owed more than $225,000 by Global Bullion Exchange, 10 are over 60 years old and three have died since 2007. Those three clients died at the ages of 83, 87 and 92.
Campany has told deputies from the Palm Beach County Sheriff's Office that the day after Global Bullion Exchange closed, up to $500,000 in silver bars were stolen from a moving truck he had parked along an unlit gravel road off South Military Trail in Delray Beach.
In addition to the lawsuit against Campany, Stermer said he is seeking the return of about $12 million paid in commissions to Global Bullion Exchange brokers and officials.
To recover those brokers' fees, Stermer has filed five lawsuits against former Global Bullion Exchange employees and associates. He's also suing three other South Florida precious metal companies — Pan American Metals of Miami, Pan American Metals of Miami Beach and Princeton Trading Group in Palm Beach Gardens, claiming the businesses or their founders got money from Global Bullion Exchange.
Princeton Trading Group received nearly $1 million from Global Bullion Exchange, while Bill and Kerry Hionas, who are linked to the formation of the two Pan American Metals companies, received about $368,000 in Global Bullion Exchange funds, according to the lawsuits.
Stermer alleges in court papers that Princeton Trading Group and the Pan American Metals companies, like Global Bullion Exchange, have violated the Florida Deceptive and Unfair Trade Practices Act.
An attorney representing Princeton Trading Group and its owner, John Boyer, said the allegations against them are without merit.
"The money that was paid to Princeton Trading was paid in good faith and for reasonable value," said Jared Quartell, the company's attorney. "The money was paid as commissions pursuant to the licensing agreement and in return of services performed by Princeton Trading."
Attempts by the Sun Sentinel to reach Bill and Kerry Hionas were unsuccessful.
Investors out millions when Global Bullion Exchange shut down
By Jon Burstein, Staff Writer
5:11 p.m. EDT, June 19, 2010
The founder of a South Florida precious metals company systematically defrauded clients who are out at least $29.5 million, according to a lawsuit from the attorney in charge of recouping the funds.
The case against Jamie Campany, the former owner of Global Bullion Exchange, is part of a flurry of lawsuits filed this month as the search for customers' missing millions intensifies. The business shuttered its Lake Worth headquarters overnight in December, offering many clients no explanation as to what happened to their money.
Customers of Global Bullion Exchange, which had five South Florida offices, believed they were buying gold and silver that would be stored at a secure location until they wanted to sell the metals. Such transactions are not regulated by the federal government, leaving companies like Global Bullion Exchange free to operate with little, if any, regulatory oversight.
Global Bullion Exchange — which has filed the state court equivalent of a Chapter 7 bankruptcy case — is now under the control of attorney Daniel Stermer. Stermer alleges in a Miami-Dade Circuit Court lawsuit against Campany that the business sought out elderly customers as it "engaged in deceptive, unconscionable and/or unfair business practices and acts."
Campany's attorney, Christopher Bruno, said his client has been cooperating with Stermer in an attempt to recover clients' funds. He declined further comment on the lawsuit.
The state Office of Financial Regulation has an open investigation into Global Bullion Exchange based on "numerous complaints," said Flora Beal, an agency spokeswoman. She said she could not discuss the inquiry.
Tax returns for the company's first two years — 2007 and 2008 — show that most of the money raised by the company went to brokers' commissions. A Sun Sentinel investigation found that of the 20 clients listed as being owed more than $225,000 by Global Bullion Exchange, 10 are over 60 years old and three have died since 2007. Those three clients died at the ages of 83, 87 and 92.
Campany has told deputies from the Palm Beach County Sheriff's Office that the day after Global Bullion Exchange closed, up to $500,000 in silver bars were stolen from a moving truck he had parked along an unlit gravel road off South Military Trail in Delray Beach.
In addition to the lawsuit against Campany, Stermer said he is seeking the return of about $12 million paid in commissions to Global Bullion Exchange brokers and officials.
To recover those brokers' fees, Stermer has filed five lawsuits against former Global Bullion Exchange employees and associates. He's also suing three other South Florida precious metal companies — Pan American Metals of Miami, Pan American Metals of Miami Beach and Princeton Trading Group in Palm Beach Gardens, claiming the businesses or their founders got money from Global Bullion Exchange.
Princeton Trading Group received nearly $1 million from Global Bullion Exchange, while Bill and Kerry Hionas, who are linked to the formation of the two Pan American Metals companies, received about $368,000 in Global Bullion Exchange funds, according to the lawsuits.
Stermer alleges in court papers that Princeton Trading Group and the Pan American Metals companies, like Global Bullion Exchange, have violated the Florida Deceptive and Unfair Trade Practices Act.
An attorney representing Princeton Trading Group and its owner, John Boyer, said the allegations against them are without merit.
"The money that was paid to Princeton Trading was paid in good faith and for reasonable value," said Jared Quartell, the company's attorney. "The money was paid as commissions pursuant to the licensing agreement and in return of services performed by Princeton Trading."
Attempts by the Sun Sentinel to reach Bill and Kerry Hionas were unsuccessful.
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06-21-2010, 07:12 AM
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06-21-2010, 07:36 AM
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06-21-2010, 10:46 AM
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I still can't believe people are sending their life savings (400K for one guy in Seattle) to someone you have NEVER met based on what they promised you on the phone!
If there isn't a recognizable corporate name on the building (Goldman, Merrill, whatever) they aren't getting my money! Even some of those have been sketchy lately!
