GoldAge Partners Arrested - Held on half a million dollar bond


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 GS&R 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 GS&R 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 GS&R 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 states may be setting 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/n...-apnewyorkClean website!

Source:- Moneynetnews

From what I have read, Gold Age have always had a good name in the exchange business over the years. It will be interesting to see how this one pans out. Please keep us up to date Geoff 8)

Gold Money may have a problem then. As their name suggests Gold = Money :oops: