Those familiar with online business and internet transactions, are acquainted with the name e-gold. An online currency, that was used by many online businesses because it provided an alternative to bogus credit cards and suspicious transactions from faulty bank accounts, has been very popular with online merchants and even a stable within certain online investments, mainly HYIP's or High Yield Investment Programs.
Even though, every giant faces a downfall. Starting with a recent report by BusinessWeek accusing the company of having ties to certain financial schemes, in recent weeks the online currency stud has faced much scrutiny leading up to recent investigations and probes by FBI into the companies means of operation.
In a surprising event the parent company of the e-gold currency has been indicted on charges of money laundering and cooperation with criminal entities. Announced by attorneys, Jeffrey A. Taylor and Matthew Friedrich, the company has been realized as an organization with illegal practices and cooperation with thefts of money in relation to several identity scams.
The Suspects
The head honcho, Dr. Douglas Jackson has pleaded guilty to being involved with the practices of money laundering and even using an unregistered monetary transaction business. Also included in the charges are his fellow business partners, Barry Downey and Reid Jackson, who both were found guilty of violations within District of Columbia in relation to utilizing an unlicensed money transaction business.
The Sentencing
The sentencing decided for the date of November 20, 2008 has serious implications. In a show of strict punishment, the court decided that the organization should face a maximum fine of $3.7 million. In addition to that, the principal director, Dr. Douglas Jackson faces a maximum imprisonment of 20 years coupled with a fine of $500,000 based on his involvement in conspiring to launder money through his company. Jackson also has been given up to 5 years and a fine of $250,000 for not having a registered monetary transaction business.
The other senior directors Downer and Reid Jackson also faced similar charges. Each one respectively received up to 5 years in prison and an additional fine of $25,000. The court has also found the company liable of $1.75 million dollars.
What is the 411
E-gold, a digital currency operated by Gold & Silver Reserve Inc., was a currency of much respect and recognition within the world of online merchants. Due to the statistics on the company website, in 2007, the parent company of the e-gold currency had approximately US $86 million of gold and silver in storage and roughly three million accounts.
Initially started in 1996 by Dr. Douglas Jackson and Barry K. Downey, it made possible for businesses and consumers to make transactions all around the world with one currency. With all exchanges done electronically, this provided a useful benefit in todays world of comfortability.
Main supporters of the currency, enjoyed its use because they felt it provided alternative benefits against the risks of fiat currencies, such as inflation, and depreciation. Each basic unit was backed by reserves and provided a viable investment for those interested in building up assets in commodities such as gold and silver.
Conclusion
Interestingly enough, this is just another sign of the easy access of criminal entities into the pockets of consumers. With scams decorating the online market place, E-Gold Ltd. is another detrimental blow to online entrepreneurs and legitimate businesses who wish to seek profit within the World Wide Web. From HYIP's, Autosurfers to the faulty business practices of certain pay per click search engine companies, one has to walk well equipped in the realm of online business making sure every corner is checked and stone overturned.
Author Resource:-
Article provided by S-Proprietor.com. A website dedicated to entreprenuers, work at home business opportunities and resources.
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