Man in Michigan Loses Nearly $400,000 in Gold Coins in Scam

A man from Michigan was allegedly defrauded of almost $400,000 worth of gold coins by a Long Island dealer linked to over a dozen scams nationwide, according to court documents.

In May 2024, Ahmad Abdallah sent five boxes containing nearly 150 American Gold Eagle coins—ranging from 1/10th of an ounce to 1 ounce, minted from 1987, in pristine condition—to Austin Coins in Suffolk County. The agreement was for the coins to be appraised, with the collection returned if no trade was finalized.

However, Abdallah claims he received a “bad faith, low-ball appraisal” and demanded the return of his collection. Instead, he alleges that the dealer, Patrick White, continuously delayed and reassured him that he was trying to find a buyer, but the coins were never returned.

Text messages show Abdallah frequently asking for updates, expressing frustration about being strung along and the coins not being shipped back. Abdallah is now seeking over $385,000, accusing White of a fraudulent appraisal scam.

Wooden box filled with graded coins, seen in a photo sent from defendant to plaintiff. — Patrick White sent Abdallah a text in October regarding his coins, claiming he was trying to return them.

White has a history of legal troubles, including court appearances for similar alleged scams. In April, he was questioned about another victim, an elderly retiree from Wyoming, whom he had convinced to invest over $300,000 in gold coins.

During that hearing, White admitted that Abdallah’s coins, supposed to be in his home, were actually stored in a container filled with “junk” and at risk of auction because White owed money to the storage facility. He paid for the storage just before the contents were auctioned but has refused to return Abdallah’s coins.

Text messages expressing concern over unshipped coins. — Abdallah continuously asked for updates on his coins, pleading for their return.

Legal experts describe this case as an example of how coin fraud schemes operate, noting that victims like Abdallah suffer significant financial losses. The perpetrator, Patrick White, a former stockbroker barred by the SEC, is accused of orchestrating at least 12 scams, allegedly stealing over $6.8 million since 2020, mainly from vulnerable retirees through telemarketing schemes.

White claims to have had over 5,000 customers, but he has yet to face jail time or respond publicly to these allegations.