By MICHAEL SASSO msasso@tampatrib.com

The Tampa Tribune

Liquidation looms for National Gold

Published: March 5, 2010

TAMPA – Mark Yaffe, a Tampa businessman who became one of America’s leading gold coin dealers, will see much of his empire dismantled after a bankruptcy judge’s decision Wednesday.

U.S. Bankruptcy Court Judge Michael Williamson on Wednesday converted National Gold Exchange’s Chapter 11 bankruptcy case to Chapter 7 bankruptcy. The judge’s action spells the end for the gold and rare coin company because Chapter 7 bankruptcy leads to a company’s liquidation.

National Gold’s chief creditor, Sovereign Bank, already had seized most of the company’s assets months ago, but was prevented from selling them when National Gold filed for bankruptcy protection last summer.

Those assets include millions of dollars in gold and rare coins and Yaffe’s unusual collection of antique music boxes, which are similar to player pianos.

Now, with the judge’s order, the bank is authorized to liquidate the items. Richard McIntyre, National Gold’s bankruptcy attorney, expects the music boxes could sell for at least $7 million, while the coins should sell for more than $5 million.

Meantime, Yaffe is trying to sell his opulent mansion in Tampa’s Avila community to pay his creditors. The 29,000-square-foot residence is stocked with his renowned collection of music boxes.

Yaffe’s troubles started last summer when a lawyer sent a letter to Sovereign Bank claiming Yaffe was improperly using some National Gold assets to pay for his mansion.

Acting on the tip, Sovereign Bank quickly began an investigation and found several problems at National Gold, including missing coins and faulty accounting.

Despite his company’s liquidation, Yaffe expects to continue in the gold coin business, McIntyre said. He recently has received loans from his father and others allowing him to launch a new, if much smaller, coin operation called Phoenix Gold, McIntyre said.

National Gold Exchange’s Mark Yaffe could emerge from bankruptcy in March

By James Thorner, Times Staff Writer

In Print: Thursday, November 19, 2009

More than $36 million in debt, Tampa gold and coin dealer Mark Yaffe plans to emerge from bankruptcy as early as March.

At a hearing in Tampa bankruptcy court Wednesday, Yaffe’s National Gold Exchange, one of the world’s largest precious coin wholesalers, said it had mediated a tentative deal with Sovereign Bank, its largest creditor.

The agreement would force Yaffe to liquidate his 30,000-square-foot mansion in Tampa’s Avila neighborhood, sell off part of his multimillion-dollar collection of antique music machines and turn over future profits to creditors.

“We’re confident we’ll have the approval of the bank,” Yaffe bankruptcy attorney Richard McIntyre said.

Sovereign lawyer Robert Soriano confirmed “there’s a core of a deal there,” provided Yaffe discloses his finances more deeply. But getting that information hasn’t been easy.

Investigators working on the bankruptcy case said they had yet to fully crack Yaffe’s “antiquated” computer system to retrieve financial records.

Yaffe himself has also been reluctant to talk. According to testimony Wednesday, Yaffe has invoked his Fifth Amendment right against self-incrimination.

National Gold filed for Chapter 11 bankruptcy in July after Sovereign called back $36 million worth of loans. Although the company had been current in repaying Sovereign, the bank got a tip that Yaffe had siphoned off about $10 million from his company to build his mansion.

The informer was a lawyer for the Bilzerian family, former friends and neighbors of Yaffe who had a falling out over a broken business deal.

U.S. bankruptcy Judge Michael Williamson gave National Gold 60 days to come up with a reorganization plan to satisfy Sovereign. A hearing to confirm it is scheduled for March 3.

James Thorner can be reached at jthorner@sptimes.com or (813) 226-3313.