Michigan Man Allegedly Scammed Out of $400,000 in Gold Coins
A Michigan man claims he fell victim to a Long Island dealer, who is reportedly linked to multiple fraud cases across the U.S., losing nearly $400,000 in gold coins. This information comes from recent court filings.
Ahmad Abdallah sent five boxes of gold coins to a dealer named Austincoin in Suffolk County back in May 2024. The understanding was that the coins would be assessed and returned if a trade wasn’t finalized, according to the lawsuit submitted last week.
The collection comprised nearly 150 pristine coins, 22-karat and dated back to 1987, with sizes ranging from 1/10 ounce to 1 ounce. These coins hold a face value of up to $50 each, but their gold content currently values them at about $3,400 per ounce, making them far more valuable than their face value.
According to the lawsuit, Abdallah reached out to the owner of Austincoin, Patrick White, after expressing dissatisfaction with the valuation alleged to be “malicious” and “low.” He asked White to send the coins back, as stated in the federal court documents.
However, Abdallah did not get his coins back and claimed that he felt misled by White.
In October, Abdallah sought updates about his coins, asking White, “Are you sure you have any news about my coins?” A week later, he followed up with, “Pat, you tell me to hold me down for a day or so, then you disappear and nothing happens.”
Abdallah is now pursuing at least $385,000, calling it “intentional, fraudulent, dishonest” valuation fraud.
Previously, White faced court in April for another case involving an 82-year-old cancer patient from Wyoming, named Earl Keith, who also claimed to have been scammed.
Attorneys representing Keith, Abdallah, and other victims pointed out that there are likely many more customers suffering similar losses due to White’s actions. One attorney noted, “We believe many other Austin Lloyd customers like him are suffering from millions of financial losses.”
Despite the ongoing investigations, White and several associates are accused of continuing their fraudulent practices. “Someone has to end this, and that’s why we pursue these cases,” the attorney added.
White, who is a former stockbroker under a ban from the U.S. Securities and Exchange Commission, is described as the “mastermind” behind at least a dozen coin fraud schemes. Reports indicate he has allegedly scammed over $6.8 million from individuals nationwide since around 2020.
In court, White stated that he and his accomplices serviced more than 5,000 customers. Although allegations against him are serious, sources indicate that he has not yet faced prison time for these accusations. He has not responded to inquiries regarding the matter.
