Tulving $15 million fraud

[JadeDragon]

Department of Justice
U.S. Attorney’s Office
Western District of North Carolina
FOR IMMEDIATE RELEASE
Thursday, February 18, 2016
Federal Judge Sentences Coin And Precious Metals Dealer And His Company For Defrauding Over 380 Customers Nationwide


CHARLOTTE, N.C. – A coin and precious metals dealer and his company responsible for defrauding more than 380 customers of over $15 million were sentenced in federal court late Wednesday, February 17, 2016, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. sentenced Hannes Tulving, Jr., 60, of Newport Beach, California to 30 months in prison and three years of supervised release. The company was ordered to pay a $10 million fine and was placed on a probationary period of two years. Judge Cogburn reserved his ruling on the amount of restitution owed by Tulving and the company for 90 days.

Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Rose in making today’s announcement.

According to the filed court documents and statements made in court, Hannes Tulving was the sole owner, shareholder and president of The Tulving Company, Inc. (Tulving Co.), a California-based business that sold coins, bullion, and other precious metals over the Internet. Court records show that from about August 2013 to January 2014, Tulving and his company executed a scheme to defraud customers nationwide by inducing them to place orders for coins and other merchandise knowing those orders could not be fulfilled. Court records show that the customers paid for the merchandise expecting their orders to be delivered within a certain time frame as advertised on the company’s website.

Court documents show that Tulving and his company accepted the customers’ payments but failed to deliver some of the merchandise. Instead, they diverted the customers’ payments to fulfill other customers’ orders, to pay company debts and to return the money to previous customers who did not receive their merchandise. According to court documents filed in the case, the defendants defrauded more than 380 victims nationwide of over $15 million. Hannes Tulving and the Tulving Co. each pleaded guilty to one count of wire fraud in August 2015.

In handing down Tulving’s sentence, Judge Cogburn noted what a staggering amount of money was stolen from the victims in such a short period of time. He also noted the seriousness of the offense and said that, “People were seriously harmed and their lives are affected. These people saved up money and they were hurt.”

Hannes Tulving will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.

The U.S. Secret Service handled the investigation. Assistant U.S. Attorney Kevin Zolot prosecuted this case.
http://www.justice.gov/usao-wdnc/pr/fed ... uding-over

I remember people complaining he was slow to ship and doubting he had metal on hand - they were right. Easy to have great prices if you don't have money invested. I never bought from him due to those poor reviews.

[68Camaro]

Thanks for update.

I also remember people defending him because they had "never had a problem with him before".

As I have reminded people before, the measure of integrity of a person or a business is not how many successful transactions they've had but their ability to successfully resolve issues while retaining a happy customer. That is why transactions that haven't gone well - without acknowledgement of the problem(s) or a heartfelt apology - tend to be the last time I use someone. And I tend to follow that same direction when someone else that I respect lets me know of such issues with those that I haven't dealt with.

Fool me once, shame on you - fool me twice shame on me.

[wheeler_dealer]

Thanks for sharing.

[Doctor Steuss]

CHARLOTTE, N.C. – A coin and precious metals dealer and his company responsible for defrauding more than 380 customers of over $15 million [...]

Wow. That averages out to almost $50K per individual.

[pennypicker]

As I have reminded people before, the measure of integrity of a person or a business is not how many successful transactions they've had but their ability to successfully resolve issues while retaining a happy customer.

Fool me once, shame on you - fool me twice shame on me.

Couldn't have said it better. Back in 2011 I personally investigated and exposed Ebay's most sophisticated fabricator of pre-1980 unopened baseball card packs. He was making packs such as a 1961 Topps cello pack with a visible Mickey Mantle card on top. This counterfeiter was the best the hobby had ever seen and respected names in the hobby had deemed him "King of Unopened". He had over 7000 positive ebay feedbacks with a 100% rating.

Camaro is absolutely correct when he says the integrity of a person or business is not how many successful transactions they've had.

[JadeDragon]

I recall he had very low premiums, but you had to buy big quantities. I'm sure there are posts in the old forum about this.

[Cu Penny Hoarder]

Paying the $10 mil fine is nothing compared to the 30 months in prison... ouch.

Just think, not one single bankster from the 2008 mess has gone to jail - pathetic.

[Know Common Cents]

Being sentenced to 30 months is one thing. Serving that time is something else. I hope he makes many new "friends" in prison while he's there. (Wink...Wink)

[JadeDragon]

Not a violent crime so he'll go to minimum security.

[pennypicker]

Being sentenced to 30 months is one thing. Serving that time is something else. I hope he makes many new "friends" in prison while he's there. (Wink...Wink)

It is child molesters who really take a "pounding" in prison...no pun intended.

[Recyclersteve]

I don't know what to believe with Tulving, but I remember hearing that he supposedly sold a lot of PM's to the late actor John Wayne. But Wayne died in 1979, so Tulving would've been only about age 24 when he passed. I never did have any dealings whatsoever with Tulving, so I'm not one of the 380 defrauded parties- thank God!

[Diggin4copper]

Anyone want to buy a TULVING gold coin? I bought some in 2009.. 1 oz Vancouver Olympic Maples.. I will write a letter of provenance for you...

[agmoose]

As I have reminded people before, the measure of integrity of a person or a business is not how many successful transactions they've had but their ability to successfully resolve issues while retaining a happy customer.

Fool me once, shame on you - fool me twice shame on me.

Couldn't have said it better. Back in 2011 I personally investigated and exposed Ebay's most sophisticated fabricator of pre-1980 unopened baseball card packs. He was making packs such as a 1961 Topps cello pack with a visible Mickey Mantle card on top. This counterfeiter was the best the hobby had ever seen and respected names in the hobby had deemed him "King of Unopened". He had over 7000 positive ebay feedbacks with a 100% rating.

Camaro is absolutely correct when he says the integrity of a person or business is not how many successful transactions they've had.

Being a former card collector, I think I know which ebayer you are talking about. I never purchased because I don't believe in too good to be true, and didn't think those packs would have survived the mad card rushes of the late 80's and early 90's.

[neilgin1]

I've always thought bringing back the "stock" as a form of punishment/public humiliation is a good idea.

I would love to see an AP news photo of Jon Corzine, (who cratered MF Global to the tune of 1.6 bln USD, by violating the holy of holies, which was trading customer segregated funds, and getting hammered) put in stocks, right next to Tulving, whose albeit "lesser" crime of a $15 mln fraud, pales to the 1.6 bln of Corzine....both feckless, hapless curs, with sad faces would WELCOME a modern prison, which are run by huge FOR PROFIT corporations. instead, they would look like this:



But of course, honor, decency and justice have fled these States United, so its just "do whatever you can get away with which is why tis country is headed for the rocks.

I refuse to play into this terrible and dishonorable way of living,i heard once a upon a time a mans WORD and his handshake were BOND...INVIOLATE, and if you even hold to such, you are termed "naïve". A pox on the house,the storm is coming, brace

[Recyclersteve]

Here is a short video on the Tulving Co. from back in 2011 when things were going pretty well for them. Enjoy- and feel free to fantasize about owning that much silver...

https://www.youtube.com/watch?v=b6MaadOoVwk

[68Camaro]

Yeah I remember that video. Wonder where the 800 number goes to now.

[neilgin1]

Here is a short video on the Tulving Co. from back in 2011 when things were going pretty well for them. Enjoy- and feel free to fantasize about owning that much silver...

https://www.youtube.com/watch?v=b6MaadOoVwk

watching that sham , actually makes me physically ill...it also makes me want to watch one of my favorite films..."Heat"...if you get "where" I am going in my mind.......Bobby D's crew could take that place down in a week of prep.

"TULVING....starring in "Heat" (lmao)....and why not lmao, Ag is just getting started again, close solid above $16 for a week or two?.....and its 19, then 20.....above 20?.....better be stacked....wishing the BEST for the gang here, n.

[wolvesdad]

This guy was a great operation for a long time. 5-10 years. My dad had proplem free transactions (3-6) over an 8-10 year period without a single hickup.


He probably played the paper market wrong and didnt have the integrity to own up. Or, was sitting in his office one day looking at $30-75 million worth of PM's and the sinful flesh said "screw this, I'm taking a paid vacation"

Thing is, this could happen to ANY small to midsize bullion dealer that does well enough on smaller margins that he gets enough return customers that he starts to handle multi-million worth of bullion per day or week.

[wolvesdad]

Bulliondirect also had some kinda issue and went under or something. They were a great bullion trading model, but.....

[wolvesdad]

Haha, in this category below is a thread that mentioned Tulving going under October 2014.

And as I said, BullionDirect.com also went out of business or something. Not sure what happened there.

[Kurr]

Perhaps we should make an addition to the rule...

If you don't hold it, you don't own it..... so don't try and sell it! lol

[Recyclersteve]

I've always thought bringing back the "stock" as a form of punishment/public humiliation is a good idea.

Wait a minute- some people think stocks (at least in January and February) were widely used as a form of punishment. This time the letters at the base said either NYSE or NASDAQ. (jk)

[Recyclersteve]

I've always thought bringing back the "stock" as a form of punishment/public humiliation is a good idea.

Wait a minute- some people think stocks (at least in January and February) were widely used as a form of punishment. This time the letters at the base said either NYSE or NASDAQ. (jk)