Judge Orders Settlement Payments to People in Chauncey Coin Suit (local gold bug jailed)
Judge Orders Settlement Payments to People in Chauncey Coin Suit
Chauncey did indeed deal in rare coins but much of his recent business has been in Beck-style speculative gold buggery, with local fatcats buying huge consignments of gold purely for their metallic value. In a 70% Republican market it’s a “golden” opportunity for grifters.
More than 20 people with claims against a defunct Lubbock rare coin business will share some $533,000 recovered from the shop’s liquidation, a District Court judge has ruled.
Judge William Sowder’s ruling wraps up a portion of the legal issues surrounding the demise of Chauncey’s Rare Coins last year.
According to documents filed with Sowder’s order, the 23 people and business entities with claims against Chauncey’s received slightly more than 23.5 cents on the dollar.
The claims against the business totaled more than $1.24 million against a recovery of $533,168.
Payouts ranged from $100,963 to $1,483.
The business was the target of several lawsuits and a criminal investigation last year over allegations that owner Edwin Chauncey accepted payments in advance for orders to buy rare coins and precious metals and failed to make those purchases.
A Lubbock County grand jury indicted Chauncey on Oct. 12 on two counts of theft of $200,000, based on two transactions with different people in April and June 2011.
Chauncey is free on a personal recognizance bond pending trial.
The civil case started in August when Irrigated Farms owners William and Lila Ratheal both contacted police and filed suit in District Court over an alleged deal with Chauncey.
The Ratheals, under Irrigated Farms, paid Chauncey $250,000 in June 2011 for more than 150 one-ounce gold coins, according to the suit.
He didn’t deliver, and a month later told the Ratheals the coins were being rationed. When the buyers called back in August, Chauncey said he had 20 coins only.
As a result of the suit being filed, Sowder ordered the store to stop doing business. But according to court documents, a private investigator visited the store and bought a coin.
Sowder then ordered the Lubbock County Sheriff to padlock the store.
The suit, filed in August, grew rapidly as people who had given Chauncey coins to sell on their behalf filed actions to get them back, and cross claims were made challenging ownership.
No date has been set for the criminal trial. According to court records, Chauncey’s case has been the subject of three plea negotiation conferences, and is set for an Oct. 16 status conference in the 364th District Court.
