Sorry everyone but you must read this

GoldAge Partners Arrested - Held on half a million dollar bond
By MoneyNet Producer | Published Yesterday | Daily News Cast | Unrated

MoneyNet Producer


View all articles by MoneyNet Producer GoldAge Partners Arrested - Held on half a million dollar bond
Is e-gold money? Is GoldAge a money transmitter and does transmitting gold currency without a state license mean both companies are money laundering?

According to AP, the New York State Banking Department, The Florida State Banking Department, the Attorney Generals from New York and Florida and The District Attorney's office in New York, all of the above seem to be true.

Today, Arthur Budovsky, 32, and Vladimir Kats, 33, both of Brooklyn new York, were arraigned on charges of engaging in the business of transmitting money without a license, a felony violation of state banking law.

The two partners pleaded not guilty before state Supreme Court Justice Michael Ambrecht and were held on bail of $500,000 each.

This comes after a another questionable and still pending 2005 case that began against G&SR the current owner of e-gold which made similar claims in Florida. Transmitting money, or in this case gold bullion without a state banking license may just be a crime if you buy and sell to the public.

Studying the state money transmitting information and legislation is no help. According to OFAC documents, gold is only regulated if the dealer buys from the public and creates a 2 way street in the market. The problem here is that OFAC regulations have nothing to do with States and everything to do with Federal regulations.

Since both Gold Age and G&SR sell digital gold backed by real gold, according to the state's district attorneys, gold must now be considered money. If that is true, the state banking regulators are taking a position that has no modern precedence in the courts and it remains to be seen what will evolve as the cases proceed.

Although the G&SR case is still in progress no information can be obtained about the case as the Department of Justice has concealed the case from the public for reasons that remain unknown to MoneyNet News.

To add to the confusion, the New York Attorney General seems to be confused about what money laundering actually is. A normal definition of Money Laundering is that the source of funds is from illegal activity such as drug sales, or smuggling. But according to the New York State Banking Office, it is also money laundering if your money transmitting business is unlicensed.

The question remains, is gold money? If so, then the various states may be setting a precedent that would upset many people who have an interest in the status quo of fiat dollars.

For the District Attorney press release, as reprinted by AP, click here:
http://www.newsday.com/news/local/wire/new, egion-apnewyork




http://www.moneynetnews.com/articles/26/1/, ollar-bond.html



Wow, a lot of these things are connecting.


http://www.newsday.com/news/local/wire/new, egion-apnewyork



QUOTE
AP New York2 Brooklyn men indicted in money transmittal probe
By PAT MILTON
Associated Press Writer

July 27, 2006, 4:43 PM EDT


NEW YORK -- Two men were indicted Thursday for operating a multimillion-dollar money laundering scheme out of their apartments, illegally transmitting funds worldwide for customers who paid as much as six figures per transaction, prosecutors said.

The indictment, capping a six-month undercover investigation, said the defendants received and illegally transmitted $4 million through their company, GOLDAGE, between January and June 2006.

Arthur Budovsky, 32, and Vladimir Kats, 33, both of Brooklyn, were arraigned Thursday on charges of engaging in the business of transmitting money without a license, a felony violation of state banking law. They pleaded not guilty before state Supreme Court Justice Michael Ambrecht and were held on $500,000 bail each.

The investigation revealed that the pair would allow people to open accounts at their company with limited documentation of their identities, prosecutors said. Customers would then have the defendants buy E-Gold, digital currency backed up by gold bullion, for their accounts, Manhattan District Attorney Robert Morgenthau said.

The customers could then withdraw the money by asking for wire transfers to accounts worldwide or by sending checks to people around the globe, the indictment said. The defendants collected a fee on both ends of each transaction, authorities charged.

The pair illegally transmitted at least $30 million, authorities said, with fees sometimes hitting six figures.

"When it is that high, there is a presumption that something is wrong," Morgenthau said.

Undercover investigators set up three accounts at GOLDAGE in January and moved money through the defendants' companies. Investigators deposited $55,000 in cash and postal money orders to GOLDAGE accounts and then transferred the funds to other accounts.

Search warrants were executed Wednesday at the defendants' apartments, where authorities seized computers, business records and financial statements.

Morgenthau's office has instituted a $2 million forfeiture action against the defendants.

The attorney for both defendants, Igor Niman, was in a meeting Thursday afternoon and couldn't immediately comment.


I am wondering if this Kats person is also part of Kats Global as well?

This post has been edited by Poncer: Today, 01:02 AM


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