James P. Burg, 62, is set to face the consequences of his actions after pleading guilty to one count of mail fraud and one count of failing to file an income tax return in a federal court in Denver, Colorado.
According to the indictment, Burg devised a scheme to defraud customers who ordered coins from his business, Superior Discount Coins and Gold Run Investments, between 2007 and 2012. He took and received $2,464,099 from customers, but failed to deliver the coins as promised.
Burg operated under the alias ‘Tim Burke’ and advertised his business through radio ads and websites, including www.superiordiscountcoins.com, www.yourcoinbroker.com, and www.goldruninvestments.net.
Burg used a portion of the money received from customers for his own benefit, and refused to refund money to customers who requested a return after he failed to deliver the coins. He even used one customer’s payment to refund funds to another customer.
The investigation found that Burg generated over $1.3 million in gross income between 2003 and 2009, but failed to file income tax returns and pay taxes on the income.
Burg is scheduled to be sentenced on December 17, 2013, and faces up to 20 years in federal prison and a fine of up to $250,000 per count for mail fraud. He also faces up to 1 year in federal prison and a fine of up to $25,000 per count for failing to file a tax return.
The case was investigated by special agents with IRS-Criminal Investigation, the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Tim Neff.
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Key Facts
- State: Colorado
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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