Delaware Precious Metals Depository Owner Convicted of Mail, Wire and Tax Fraud

WILMINGTON, Del. - David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal jury convicted a West Chester, Pennsylvania man on October 24, 2024, on charges of Mail, Wire and Tax Fraud. U.S. District Judge Maryellen Noreika accepted the verdict and detained the defendant pending sentencing at the government's request.

According to court records and evidence presented at trial, Robert Higgins, age 69, owned and operated First State Depository, a precious metals depository located in Wilmington, Delaware. First State Depository held over $100 million in customer assets, primarily in the form of gold and silver bars and coins. According to evidence presented at the trial, Higgins diverted customer assets to pay debts and finance his personal life, including two timeshares in Hawaii and luxury vacations. First State Depository's records indicated that at least $58 million worth of customer assets had been misappropriated. Industry sources generally agree that this is the largest theft from a precious metals depository in U.S. history.

U.S. Attorney Weiss stated, "The jury found that Mr. Higgins defrauded his customers by repeatedly lying to and stealing from them over a 10-year period. Mr. Higgins used his customers' gold and silver as if their precious metals were his own, and at the same time failed to declare and pay his fair share of taxes on his income. By the end of his scheme, over $50 million in customers' precious metals was gone. In some instances, victims lost their entire hard-earned life savings because of Mr. Higgins' theft and fraud. I want to commend the FBI and the Internal Revenue Service-Criminal Investigation Division (IRS-CI) for working tirelessly to bring Mr. Higgins to justice."

"The level of deceit and greed revealed by this investigation is staggering. With his conviction, Robert Higgins will now be held accountable for the lies he told and the millions he stole from swindling his customers," said FBI Baltimore Special Agent in Charge William J. DelBagno. "The FBI and our partners at the United States Attorney's Office and IRS Criminal Investigation Division remain steadfast in our commitment to combating corruption and making sure criminals like Higgins are brought to justice."

"Anyone contemplating cheating on their taxes should know that IRS Criminal Investigation Special Agents work tirelessly, year-round, to investigate tax and financial crimes," said IRS Criminal Investigation Acting Special Agent in Charge Amy MacNeely. "Our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their taxes."

Higgins faces a maximum penalty of 20 years on the wire and mail fraud charges and 5 years on each tax fraud charge A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by the FBI and IRS-CI. Assistant U.S. Attorneys Alexander Ibrahim, Edmond Falgowski, and Bryan Williamson are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney's Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:22-cr-44.