Man Indicted in Precious-Metals Scam

A federal grand jury here indicted a Buena Park man Friday on suspicion of running a network of seven precious-metals companies in Orange County that allegedly defrauded hundreds of investors out of about $7 million.

James A. Boone, 41, is charged with 52 counts of mail fraud and two counts of filing false tax returns. The indictment alleges that he told investors that their money would be used to buy precious metals but instead was diverted to his own personal use.

Assistant U.S. Atty. Paul L. Seave said that Boone gambled at least $100,000 of investors’ money on sports events.

Boone could not be reached for comment.

He operated Anaheim-based World Equity Mint, Pacific Exchange Mint and New World Equity Mint; Associated Miners Group in Santa Ana, Liberty Mint and Mint Management, both in Tustin, and Ashley Financial Corp. in Costa Mesa.

The indictment claims that the scheme started in June, 1984, and lasted until April, 1987.

Federal investigators claim that Boone went to elaborate extremes to cover his tracks, including allegedly creating sham transactions with local coin shops to create the false appearance that he had purchased coins and bullion for his investors.

Court documents indicate that Boone lived in high style and was frequently accompanied by a bodyguard at least during some of the time that he was allegedly stealing from investors. Court documents indicate that an informant known only as “George Washington” told an investigator that Boone took 50% of the funds collected by his companies, which were bringing in between $50,000 to $100,000 a week.

“The money that Boone takes in is split between operating expenses, supporting his lavish lifestyle and funds that he hides in anticipation of police investigation,” an affidavit quotes the informant as saying.

If convicted, Boone could face a maximum sentence of 266 years in jail and $13.5 million in fines.

He is scheduled to be arraigned Monday.