Sovereign Bank: "Significant fraudulent activities" led to the 2009 collapse of Tampa's National Gold Exchange

Tampa's National Gold Exchange is heading for bankruptcy liquidation next month, but the world-renowned coin wholesaler might not escape creditors so cleanly. In making a play for National Gold's assets this week, top creditor Sovereign Bank maintained that "significant fraudulent activities" led to the 2009 collapse of the company owned by coin dealer Mark Yaffe. Sovereign alleges that rare coins pledged as collateral for a $36 million business loan turned up missing. Yaffe was accused of pouring corporate assets into a 29,000-square-foot mansion in Tampa's Avila community. Creditors gather April 8 to pick over the company's husk. Yaffe has resumed business under the name Phoenix Gold. With the word "fraud" being bandied about, Yaffe also retained a criminal defense attorney.

Sovereign Bank: "Significant fraudulent activities" led to the 2009 collapse of Tampa's National Gold Exchange 03/17/10 [Last modified: Wednesday, March 17, 2010 6:29pm]

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