Texas Coin Maker for Fed-Estranged Files for Bankruptcy
A Dallas mint that makes commemorative coins and “alternative” money for people who are wary of the U.S. dollar has run into problems with its own finances.
The 25-worker Mulligan Mint Inc.—which has the power to create a “complementary currency system that can fill in the blanks where the U.S. dollar lets us down,” according to its president—has filed for bankruptcy after officials in June discovered that part of a $1.4 million shipment of silver was missing.
Mulligan Mint’s business targets an antiestablishment clientele who feel estranged by traditional banking; its Deluminati coin, for example, “says no to inflation, crony capitalism and all-powerful government and yes to individual liberty, economic independence and opportunity.” A Web-advertised one-ounce copper coin reflects the image of Tea Party hero and former U.S. Rep. Ron Paul, while another one asks in copper, “Who is John Galt?”
Perhaps a better question to ask Mulligan Mint executives: Where did the silver go?
“That’s the big question,” Mulligan Mint President Rob Gray told Bankruptcy Beat. “We don’t really know.”
Read the entire WSJ article here and be sure to comment.
US Federal Bankruptcy Fraud Checklist. Bankruptcy fraud carries a sentence of up to five years in prison, or a fine of up to $250,000, or both. See 18 U.S.C. § 152.
1. Concealment of assets.
2. Serial bankruptcy cases.
3. Failure to keep usual business records.
4. Incomplete or missing books and records.
5. Conduct well outside ordinary business or industry standards and practices.
6. Unusual depletion of assets shortly before the bankruptcy filing.
7. Recent departure of debtor’s officers, directors or general partners.
8. Unanswered questions or incomplete information on debtor’s schedules and statement of financial affairs.
9. Frequent amendments to schedules, statements of financial affairs and monthly operating reports.
10. Inconsistencies among recent financial statements, tax returns and debtor’s schedules and statements of financial affairs.
11. Absence of knowledgeable officers to testify at the Section 345 meeting.
12. Inability to contact principals of debtor at debtor’s stated location
14. Frequent dealings in cash rather than recorded transactions
15. Sudden depletion of inventory post-petition without plausible explanation.
16. Inflated salaries, payments of bonuses or cash withdrawals by officers, directors, shareholders or other insiders.
17. Transfer of property to insiders, shareholders and relatives shortly before bankruptcy
18. Payoff of loans to directors, officers, shareholders, relatives or other insiders shortly before filing.
19. Transactions with non-debtor subsidiaries, parent companies or affiliated corporations owned by the same or related persons or entity.
20. A history of prior litigation or post-petition litigation involving breech of contracts, fraud misrepresentations, etc.
21. Complicated corporate structures and relationships.
22. Creditor confusion concerning corporate structure.
23. Fire, theft or loss prior to or after filing.
24. Failure to pay withholding and sales tax.
25. Startup of a similar business near the time of bankruptcy filing.