Tampa's Mark Yaffe, head of bankruptcy-strapped National Gold Exchange, wants to pay back his creditors over seven years. But Yaffe's largest creditor, Boston's Sovereign Bank, has asked the million-dollar question: What will happen to the incremental repayment scheme should Yaffe become the target of a criminal inquiry?
National Gold is one of the world's largest rare coin wholesalers. Sovereign suggests the coin company defrauded it by misspending collateral held as surety for a $35 million business loan.
"Mark Yaffe, as a 50 percent owner of NGE, should be required to disclose whether he is aware of any criminal investigations … and whether he has retained criminal defense attorney," Sovereign said in a court filing Friday.
Yaffe is seeking approval of his bankruptcy reorganization next month.