MINNEAPOLIS - An Excelsior coin dealer stands indicted for devising and executing a $2.7 million scheme to defraud customers and investors.
The indictment against David Laurence Marion was unsealed during his appearance in Minneapolis Federal Court November 14. Marion is charged with one count of conspiracy to commit mail and wire fraud, one count of securities fraud, and one count of money laundering.
According to the indictment, Marion owned International Rarities Corporation (IRC), a business that bought, sold, and traded gold coins and precious metals, among other things.
Prosecutors say Marion directed his sales staff to cold call people from lead sheets in an attempt to get these individuals to buy, sell, or trade coins and precious metals.
The indictment alleges that between December 2010 and August 2011, IRC had received over $2 million in coins, precious metals, and money from customers who intended to purchase or exchange coins and precious metals. When customers inquired about the status of their orders, Marion and the IRC sales staff either ignored them, falsely indicated that their orders were being processed, or told them that their money, coins, and precious metals could not be returned because they were not available.
In truth, prosecutors allege, Marion used customers' money, coins, and precious metals for gambling, to pay for his lavish lifestyle, to pay commissions, to fulfill other customers' orders, to pay salaries, and to support his family. According to the indictment, customers lost approximately $1.7 million in money, coins, and precious metals as a result of this scheme.
The indictment also alleges that Marion was the president of International Rarities Holdings (IRH), a company that was not registered with the Securities and Exchange Commission (SEC) as a broker or dealer. Despite that fact, authorities say Marion raised approximately $1 million from at least 26 investors who believe that they were purchasing ownership shares of IRH.
He reportedly used $200,000 of those investor funds for his own personal use.
If convicted, Marion faces a potential maximum penalty of 20 years in federal prison for one count of securities fraud, 10 years in prison for one count of money laundering, and five years for one count of conspiracy to commit mail and wire fraud.
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