News report | 02-12-2025 | 17:35
Today, the Amsterdam court dealt with one of the largest gold fraud cases in recent years. Seven suspects (natural persons) and two suspect legal entities had to answer to the court. The Public Prosecution Service (OM) presented a clear picture of the case during the hearing. The suspects are accused of fraud, embezzlement, and participation in a criminal organization. Two of them stand trial for money laundering and/or forgery.
Hundreds of Dutch citizens were allegedly misled between 2015 and 2018 by a network of companies and individuals that sold gold with a cunning and well-thought-out but fabricated story about gold mining in Tanzania.
An attractive offer that was too good to be true
Consumers were given the opportunity to buy gold at a discount from an American company through so-called Forward Gold Sales: buy and pay now with future delivery of gold that was supposed to come from a (possibly already active) mine in Tanzania. The money they paid in advance, it was promised, would be used to invest in gold production or its expansion. Delivery was to take place after ten months, with a discount on the then current gold price. With rising gold prices, it was a golden deal. Sales boomed. Over three years, more than 45 million euros worth of gold was sold.
No rights to a mine, no money to a mine, no gold from a mine
Research by the FIOD shows that the story presented to buyers was not true. The company, presented as the rightful owner of the property or exploitation rights of a gold mine, turned out to be a fraud vehicle. Almost none of the millions invested by consumers went to Tanzania. According to the OM, the selling company was nothing more than an empty shell. Of the more than 1,400 kilos of gold sold, over 700 kilos were never delivered. The gold that did reach buyers was purchased from a Dutch gold trader and paid for with the investments of new customers.
According to the OM, this is a classic Ponzi fraud: as long as new buyers joined, earlier buyers could be served. When sales dried up, the house of cards collapsed.
Hundreds of victims
More than 600 people were defrauded. Over 300 of them reported themselves as victims. The rest were not financially harmed because they did receive gold, but were still defrauded. Some victims lost a significant part of their savings. Other buyers felt safe and were reassured by the fact that purchased gold was delivered, which led them to buy gold again. According to the OM, this delivery was also a means of fraud because buyers were thus induced to buy gold again. They too were misled.
Criminal organization
The OM states that multiple companies and natural persons formed a close cooperation primarily aimed at defrauding buyers. Websites, brochures, travel reports, and sales talks were intended to give the impression of a bona fide gold project purchased from a bona fide sales organization. In reality, from day one, a substantial commission of sometimes up to 50% of the purchase amount was skimmed off. The surplus was used to buy gold in the Netherlands at Goudstandaard. The OM concludes that the money was never intended for investment in gold mining.
Sentencing demands
Prison sentences of up to 4 years against the natural persons, a professional and administrative ban (for 5 years) for some of them, as well as publication of the verdicts by sending them to the Chamber of Commerce, is what the officer considers appropriate here. Fines of 339,244 euros and 117,953 euros are demanded against the legal entities respectively.
The OM also announces a confiscation procedure to seize the allegedly unlawfully obtained assets.
