Austin Businessman Indicted in Wire Fraud Scheme
In Austin, 47-year-old Charles McAllister, owner of Bullion Direct, Inc. (BDI), faces federal wire fraud and money laundering charges in connection with a scheme to defraud customers out of millions of dollars announced United States Attorney John F. Bash, Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Andy Tsui; and, Texas State Securities Board Commissioner Travis J. Iles.
A federal grand jury indictment unsealed on Tuesday charges McAllister with two counts of wire fraud and one count of engaging in a monetary transaction with criminally derived property.
The indictment alleges that from January 2009 through July 2015, McAllister perpetrated a scheme that falsely represented that funds obtained from individual customers would be used to purchase precious metals on behalf of the customer and either shipped directly to the customer or stored in BDI’s vault. Instead of buying the precious metals with the customer’s funds, McAllister spent the money on BDI corporate expenses, on other investment activities, and for his own personal use and benefit.
The indictment also seeks a monetary judgment in the case totaling $16,186,212.56. That sum represents the amount of proceeds obtained directly or indirectly from the defendant’s alleged scheme during the time of the indictment.
McAllister, who is currently on bond, has waived formal arraignment and entered a plea of not guilty to the indictment. No further court dates have been scheduled. Upon conviction, he faces up to 20 years in federal prison for each wire fraud count and up to ten years in federal prison for the money laundering charge.
Agents with the FBI, IRS-CI and the Texas State Securities Board conducted this investigation. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.