1933 double eagles belong to U.S. government, jury concludes


By Nathan Gorenstein
Philadelphia Inquirer
Wednesday, July 20, 2011


Ten famous $20 gold pieces that are worth millions to collectors were stolen from the Philadelphia Mint in the 1930s and are legally property of the U.S. Treasury, a federal court jury unanimously decided Wednesday.

After about five hours of deliberation after a seven-day trial, the two men and eight women said the government proved that when the rare "Double Eagle" coins ended up in the hands of the late Philadelphia jeweler Israel Switt, they did not get there legitimately.

Jurors accepted the government argument that there was no legal way any of the coins could have been removed from the Mint. All 445,500 coins minted by the government were supposed to have been destroyed by 1937.

The verdict "sends a strong message" that the government will pursue thefts, "no matter how many years pass," Assistant U.S. Attorney Jacqueline Romero said.

... Dispatch continues below ...


Prophecy Platinum Reports 10.97 Million Ounces Inferred
and 1.04 Million Ounces Indicated PGM+Gold in Yukon

An independent resource report on the Wellgreen project in the Yukon Territory in Canada has just confirmed that it as one of the largest platinum group metals projects in Canada and one of the few outside South Africa, Prophecy Platinum Corp. Chairman John Lee says.

The report, compliant with Canadian National Instrument 43-101, was written by geologist Todd McCracken of Wardrop Engineering Inc., a Tetra Tech company. It incorporated drill data from 701 diamond drill holes (182 surface and 519 underground) totaling more than 53,222 metres. Using a 0.4 percent nickel equivalent cutoff grade, the Wellgreen deposit now contains a total inferred resource of 289.2 million tonnes at an average grade of 0.53 g/t platinum, 0.42 g/t palladium, 0.23 g/t gold (1.18 g/t PGM and gold), 0.38 percent nickel, and 0.35 percent copper. Separately, the deposit also contains an indicated resource of 14.3 million tonnes at an average grade of 0.99 g/t platinum, 0.74 g/t palladium, 0.52 g/t gold (2.25 g/t PGM and gold), 0.69 percent nickel, and 0.69 percent copper.

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The coins are now at Fort Knox in Kentucky.

"Israel Switt and some of his friends stole 1933 double eagles from the Philadelphia Mint," Romero said during closing arguments Tuesday.

Barry Berke, the attorney for Switt's daughter, Joan Langboard, and her two sons, Roy and David, declined to comment after the verdict. Appeals are expected. Roy Langbord shook a reporter's hand but also declined comment. His mother was not in the courtroom.

Joan Langbord, 81, said on Tuesday that she had "no idea" how her father had obtained the 1933 coins. A 1933 double eagle was sold in 2004 for $7.5 million, a record price for any coin.

The family contended they were legally entitled to the coins because there was no way to know exactly how the got out of the mint and ended up in the Switt family's safety deposit box.

But Romero said the circumstantial evidence pointed to theft.

The Mint never legally issued the 1933 double eagles, and all 445,471 were accounted for in mint records, Romero said. In 1937 all the coins were supposed to have been melted down into bullion. But since then at least 21 have surfaced, and all can be traced back to Switt, who, Romero said, had gotten them from a corrupt mint official. Switt died in 1990.

Berke argued that the coins could have been legally obtained from the mint during a "window of opportunity" in March and April 1933, and that government had not proved otherwise.

Langbord said she had discovered the coins in 2003 during one of her periodic visits to a safe-deposit box containing jewelry inherited from her mother.

"We did not think that was a credible story," Romero said. Romero worked on the case for five years, and prosecuted it in court with Assistant U.S. Attorney Nancy Rue.

U.S. District Court Judge Legrome D. Davis said it was one of the oldest cases before him, but there is at least one final hearing upcoming.

Along with seeking forfeiture, the government filed a motion for a declaratory judgement that the coins are U.S. government property.

Because she inherited the box, Langbord said, she had not previously fully searched it, and only occasionally opened it to remove a piece of her mother's jewelry, uniquely styled and sought after by a customer, for sale at I. Switt, the Jeweler's Row store founded by her father.

The coins were seized by the U.S. Treasury, but District Judge Legrome D. Davis ruled the government had to prove they had been stolen.

Langbord's appearance was a rare break after days of mind-numbing testimony about Mint records that government attorneys said accurately tracked every coin produced at the facility.

Berke contended otherwise, and in his closing statement said the complex records were incomplete and rife with errors, making it impossible for anyone to state with certainty that the coins were stolen.

In the 1940s, Switt was investigated by the Secret Service, which seized nine double eagles he had sold to coin dealers after 1937. Switt said he had no recollection of how he had gotten those coins, and swore under oath that he had no others.

His daughter testified that while she had worked in her father's store from age 9, she had not been involved in purchasing goods and had never known he had the coins.

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Golden Phoenix Q2 2011 Conference Call Posted at Company Internet Site

The second quarter 2011 conference call of Golden Phoenix Minerals Inc. (GPXM) has been posted at the company Internet site for immediate playback. The call includes updates on the start of gold production at the company's Mineral Ridge gold project in Nevada, the letter of intent to acquire the Santa Rosa gold mine in Panama, and the company's due-diligence efforts to secure a senior stock exchange listing.

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Or play back the call here:


Golden Phoenix is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here: