James Fayed, the co-founder of e-Bullion, has been jailed after being charged with conducting unlicensed money transactions that allegedly netted $20 million worth of individuals' investments, according to Mark Aveis, an assistant U.S. attorney quoted on SFGate.com. Another article on The Los Angeles Times this morning says Aveis described Fayed's businesses as Ponzi schemes.

Fayed is currently a suspect in the murder of his wife, Pamela Fayed, who was also a co-founder of e-Bullion. She was killed in a Los Angeles parking garage late last month. No one has been arrested in the murder case yet, but Aveis says James Fayed had a motive: killing her would prevent her from testifying in the case of the alleged unlicensed money transfer operation.

In a search of Fayed's house after his arrest last week, authorities seized $60,000, $3 million in gold, and 25 weapons including assault rifles, according to Aveis.

At a hearing this week, Aveis claimed that Fayed was a flight risk and a danger to the community, but the judge ordered him released on $500,000 bond. The Times says Fayed remains in federal custody.

e-Bullion is one of several well-known "digital gold currency" firms. Using transactions, DGC companies take customer deposits and match them with the equivalent amount of gold that is supposedly stored in vaults. Many of the companies are unregulated and/or incorporated in other countries to avoid U.S. financial laws and shield the identities of their clients. However, another GDC company, e-gold, recently vowed to tighten up its policies and submit to U.S. regulatory oversight after its founders pled guilty in a money laundering trial.

A message on the e-Bullion website on Tuesday afternoon said the site would be unavailable for four hours while staff performed "routine maintenance."

Source: http://www.thestandard.com/news/2008/08/05/e-bullion-co-founder-jailed-money-transfer-charge

This was posted on another forum. Not My post Exactly.

Interesting,

Thanks, I was just about to post a similar release. Goes to show us all, these so called gold exchanges are not the place to have your money.

Good luck to all, Mike

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Have you read the article about his brother(Anthony Fayed) who is wanted by police? He probably is a murder.

Ebullion is dead =((
E-gold, E-bullion... Who is next? | eCommerce Journal - Learning more about virtual economy
hilarious pic by ECJ

It would be nice to know if we will ever be able to get to our funds. People should be allowed to get their money out. Can't trust any online program or processor.

It does depend on just how much is discovered, collected and retrieved by the Feds that may be released to those willing to step forward and lay claim and that again, once the costs & fees and all there are to slam home whatever is left to the last claimed cents for the entire case...

As you know, this case may get quite a profile with the murder bit thrown in and lawyers looking for easy $$$s are like sharks going in for the easy pick.

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Say good bye to your money. I guess we will never get our funds back.

So what's the lastest update?

I don't have any funds at e-bullion but i'm worried it will give domino effect to programs that accept e-bullion.

yep. At this moment this effect is active. And I think everything can be worse than it is now.