He has stolen between $24 Million and $33 Million,from at least 6000 people!
In 1999, Mr. McAllister founded Bullion Direct ,LLC, an internet based precious metal exchange.
He developed Nucleo as a subsidiary.
The premise was simple; buy, sell,or trade precious metals easily from one location.
Buy Gold, Platinum, Palladium, Silver, even Copper, then you have a choice; have it delivered , or
store it for free in their warehouse.
The advantage of storing the metals was, if you wished to trade, the "ownership" of your metals was transferred, saving time and effort to ship, and verify the product.
Bullion Direct had a very simple web site interface to make the trades.
On July 20th 2015, Mr. McAllister filed for Bankruptcy.
THE TRUTH CAME OUT
Of the estimated* $24,000,000 to $33,000,000 that was supposed to be held in the secured vaults, there was only $633K in Metals, and $160K in cash or about 3 % of that..
What happened to the REST?
no one knows.
* = McAllister kept shoddy records. He didn't even file tax reports since 2010.
Allegedly, McAllister funneled funds from customers toward more development of the Nucleo web site. The first bankruptcy Hearing for the creditors brought out many more details, which arenot important at this time. Such as a couple of trips to Dubai and Italy, a person named Tuma is wanted for theft. McAllister's wife, Patrice, also worked for Bullion Direct, some of the funds may have been hidden under her name, or as I assume, he probably set up trust funds for his children in a tax haven country ( Dubai, Switzerland, Lichtenstein), untouchable by law.. what IS important, is that over 6000 people have lost thousands of dollars to this crook. Through Bankruptcy, his accountability is non existant.
The bankruptcy accountants have been able to identify only $3,000,000 of assets.
That makes for a little over $300 per customer after lawyers fees , etc.
He has moved to Auburn, AL to avoid Texas justice.
All most of us want is our money, or our metals back ,we would love to see him rot in jail.
personally, if I had my way:
we would get justice, Texas style.
(this is not a threat, just a dream!)