International Gold Bullion Exchange
Gold Fraud Scheme
CLASSIFICATION: Financial Crime
LOCATION
Ft. Lauderdale, Florida
TIME PERIOD
1980s
VICTIMS
23000 confirmed
In the early 1980s, the International Gold Bullion Exchange, founded by brothers William and James Alderdice, operated as a prominent gold bullion dealer in the United States, with its headquarters in Ft. Lauderdale, Florida. The company engaged in fraudulent activities, ultimately leading to its Chapter 11 bankruptcy filing in April 1983, after collecting over $140 million from customers while having only $75 million in claims from 23,000 individuals. Investigations revealed that the gold bars advertised were merely wooden blocks painted gold. In July 1983, the Alderdice brothers were indicted on multiple counts of fraud and conspiracy, with William later murdered in July 1984 by a former associate. James Alderdice was sentenced to ten years in federal prison in 1985, serving concurrent sentences from state indictments. The case remains a significant example of investment fraud during a period of rising gold prices.
Investigators and the public speculate that the murder of William Alderdice was orchestrated by James Doyle, potentially as a means to silence him regarding the fraud operations. There are theories that the Alderdice brothers may have been involved in deeper criminal networks, and some believe that the scale of the fraud suggests possible connections to organized crime. Additionally, speculation exists that the brothers had hidden assets or connections that could have led to further criminal consequences had they not been arrested.
The Rise and Fall of the International Gold Bullion Exchange
In the late 1970s, a glimmering promise of wealth enticed thousands across America, driven by the allure of gold. At the heart of this golden dream stood the International Gold Bullion Exchange, founded in 1979 by the ambitious brothers William and James Alderdice. Their venture quickly ascended to become the largest retail gold bullion dealer in the United States, offering an enticing deal: discounted gold bullion sales paired with the option for buyers to postpone delivery. This strategy, coupled with strategic headquarters in Ft. Lauderdale, Florida, and additional offices in Los Angeles and Dallas, saw the company employ over 1,000 people, casting a wide net through advertisements in esteemed publications like the Wall Street Journal and Barron's.
However, this glittering facade concealed a dark reality. By April 1983, the International Gold Bullion Exchange filed for Chapter 11 bankruptcy, ceasing operations and shattering the dreams of many investors. Law enforcement raids unveiled a startling truth—the gold bars flaunted in the company’s adverts were mere wooden blocks, painted to deceive. During its operation, the company amassed over $140 million, yet when it folded, it left a staggering $75 million in claims from 23,000 victims. The Alderdice brothers had spent over $44 million on personal luxuries, salaries, marketing, and travel, leaving scant assets behind.
The summer of 1983 marked a turning point as the Alderdice brothers faced a deluge of legal challenges. Indicted in New York state on charges of grand larceny and securities fraud, they also faced 203 counts of fraud and theft in Broward County, Florida. A federal grand jury then indicted them on conspiracy, mail fraud, and wire fraud charges. Arrested in July 1983, the brothers languished in jail for eight months before securing bail.
Tragedy struck in July 1984. While free on bond, William Alderdice was brutally murdered by James Doyle, a former cellmate and the brothers’ chauffeur. The violent death of William added another layer of infamy to the scandal surrounding the International Gold Bullion Exchange.
In 1985, justice caught up with James Alderdice. He received a ten-year federal prison sentence. Although convicted in both New York state and Broward County, he was allowed to serve these sentences concurrently with his federal time.
The tale of the International Gold Bullion Exchange was not an isolated incident. In 1983, another massive fraud rocked the gold market when the Bullion Reserve of North America in Los Angeles collapsed, costing customers $60 million. These frauds unfolded amidst soaring gold prices, which made gold a highly coveted investment.
The story of the International Gold Bullion Exchange serves as a cautionary tale of greed and deception, revealing the perils hidden beneath the allure of gold. In their quest for wealth, the Alderdice brothers not only shattered the lives of thousands but also left an indelible mark on the history of financial fraud.
Sources
- Abrams Announces Arrest Of Florida Gold Dealers - News From Attorney General Robert Abrams July 14, 1983
- The gold bullion brothers, William and James Alderdice, were... UPI Archives April 5, 1984
- Florida Man Named In Gold Fraud Case Is Stabbed To Death New York Times July 16, 1984
- Alderdice Starts His Sentence In Prison Sun-Sentinel June 4, 1985
- Igbe Fraud Gets Alderdice 10-year Federal Prison Term Sun-Sentinel April 13, 1985
- Audit After Gold Dealer's Suicide Suggests Customers Lost Millions New York Times October 5, 1983
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Company Founded
William and James Alderdice establish International Gold Bullion Exchange.
Bankruptcy Filed
International Gold Bullion Exchange files for Chapter 11 bankruptcy, ceasing operations.
Fraud Discovered
Law enforcement raids company offices, revealing fraudulent practices involving fake gold bars.
Brothers Indicted
William and James Alderdice are indicted on multiple charges including grand larceny and fraud.
Arrests Made
The Alderdice brothers are arrested and spend eight months in jail before raising bail.
William Murdered
William Alderdice is murdered by James Doyle, a former cell-mate and chauffeur.
James Sentenced
James Alderdice is sentenced to ten years in federal prison for his role in the fraud.
Prison Term Begins
James Alderdice begins serving his sentence in federal prison.
In the early 1980s, the International Gold Bullion Exchange, founded by brothers William and James Alderdice, operated as a prominent gold bullion dealer in the United States, with its headquarters in Ft. Lauderdale, Florida. The company engaged in fraudulent activities, ultimately leading to its Chapter 11 bankruptcy filing in April 1983, after collecting over $140 million from customers while having only $75 million in claims from 23,000 individuals. Investigations revealed that the gold bars advertised were merely wooden blocks painted gold. In July 1983, the Alderdice brothers were indicted on multiple counts of fraud and conspiracy, with William later murdered in July 1984 by a former associate. James Alderdice was sentenced to ten years in federal prison in 1985, serving concurrent sentences from state indictments. The case remains a significant example of investment fraud during a period of rising gold prices.
Investigators and the public speculate that the murder of William Alderdice was orchestrated by James Doyle, potentially as a means to silence him regarding the fraud operations. There are theories that the Alderdice brothers may have been involved in deeper criminal networks, and some believe that the scale of the fraud suggests possible connections to organized crime. Additionally, speculation exists that the brothers had hidden assets or connections that could have led to further criminal consequences had they not been arrested.
The Rise and Fall of the International Gold Bullion Exchange
In the late 1970s, a glimmering promise of wealth enticed thousands across America, driven by the allure of gold. At the heart of this golden dream stood the International Gold Bullion Exchange, founded in 1979 by the ambitious brothers William and James Alderdice. Their venture quickly ascended to become the largest retail gold bullion dealer in the United States, offering an enticing deal: discounted gold bullion sales paired with the option for buyers to postpone delivery. This strategy, coupled with strategic headquarters in Ft. Lauderdale, Florida, and additional offices in Los Angeles and Dallas, saw the company employ over 1,000 people, casting a wide net through advertisements in esteemed publications like the Wall Street Journal and Barron's.
However, this glittering facade concealed a dark reality. By April 1983, the International Gold Bullion Exchange filed for Chapter 11 bankruptcy, ceasing operations and shattering the dreams of many investors. Law enforcement raids unveiled a startling truth—the gold bars flaunted in the company’s adverts were mere wooden blocks, painted to deceive. During its operation, the company amassed over $140 million, yet when it folded, it left a staggering $75 million in claims from 23,000 victims. The Alderdice brothers had spent over $44 million on personal luxuries, salaries, marketing, and travel, leaving scant assets behind.
The summer of 1983 marked a turning point as the Alderdice brothers faced a deluge of legal challenges. Indicted in New York state on charges of grand larceny and securities fraud, they also faced 203 counts of fraud and theft in Broward County, Florida. A federal grand jury then indicted them on conspiracy, mail fraud, and wire fraud charges. Arrested in July 1983, the brothers languished in jail for eight months before securing bail.
Tragedy struck in July 1984. While free on bond, William Alderdice was brutally murdered by James Doyle, a former cellmate and the brothers’ chauffeur. The violent death of William added another layer of infamy to the scandal surrounding the International Gold Bullion Exchange.
In 1985, justice caught up with James Alderdice. He received a ten-year federal prison sentence. Although convicted in both New York state and Broward County, he was allowed to serve these sentences concurrently with his federal time.
The tale of the International Gold Bullion Exchange was not an isolated incident. In 1983, another massive fraud rocked the gold market when the Bullion Reserve of North America in Los Angeles collapsed, costing customers $60 million. These frauds unfolded amidst soaring gold prices, which made gold a highly coveted investment.
The story of the International Gold Bullion Exchange serves as a cautionary tale of greed and deception, revealing the perils hidden beneath the allure of gold. In their quest for wealth, the Alderdice brothers not only shattered the lives of thousands but also left an indelible mark on the history of financial fraud.
Sources
- Abrams Announces Arrest Of Florida Gold Dealers - News From Attorney General Robert Abrams July 14, 1983
- The gold bullion brothers, William and James Alderdice, were... UPI Archives April 5, 1984
- Florida Man Named In Gold Fraud Case Is Stabbed To Death New York Times July 16, 1984
- Alderdice Starts His Sentence In Prison Sun-Sentinel June 4, 1985
- Igbe Fraud Gets Alderdice 10-year Federal Prison Term Sun-Sentinel April 13, 1985
- Audit After Gold Dealer's Suicide Suggests Customers Lost Millions New York Times October 5, 1983
No Recent News
No recent news articles found for this case. Check back later for updates.
No Evidence Submitted
No evidence found for this case. Be the first to submit evidence in the comments below.
Join the discussion
Loading comments...
Company Founded
William and James Alderdice establish International Gold Bullion Exchange.
Bankruptcy Filed
International Gold Bullion Exchange files for Chapter 11 bankruptcy, ceasing operations.
Fraud Discovered
Law enforcement raids company offices, revealing fraudulent practices involving fake gold bars.
Brothers Indicted
William and James Alderdice are indicted on multiple charges including grand larceny and fraud.
Arrests Made
The Alderdice brothers are arrested and spend eight months in jail before raising bail.
William Murdered
William Alderdice is murdered by James Doyle, a former cell-mate and chauffeur.
James Sentenced
James Alderdice is sentenced to ten years in federal prison for his role in the fraud.
Prison Term Begins
James Alderdice begins serving his sentence in federal prison.