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Gold Mine Scamster Rips Off Couple for $5M

Fraudster spent elderly couple's cash on oxygen chamber

By Rob Quinn,  Newser Staff

Posted Nov 24, 2009 1:47 AM CST
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(Newser) – A California man who claimed to have a new way of extracting gold from old mines has been busted for bilking a couple in their '80s out of nearly $5 million. John Arthur Walthall blew the couple's cash on cars, alimony, film school fees for his son, and a $60,000 hyperbaric oxygen chamber, according to cops. Some $500,000 in gold coins was found under his bed, the Los Angeles Times reports.

Walthall persuaded the couple to sink their savings into a scheme to extract gold from abandoned mines in California, Nevada, and Brazil, and told them he had already invested $3 million of his own, authorities say. He has been charged with offenses including money laundering and wire fraud, and faces a maximum penalty of 150 years in federal prison if convicted on all counts.

Authorities found $500,000 in gold coins under Walthall's bed when they arrested him at a friend's home.
Authorities found $500,000 in gold coins under Walthall's bed when they arrested him at a friend's home.   (FBI)
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COMMENTS
Showing 3 of 16 comments
So_Cal_Larry
Nov 25, 2009 5:54 AM CST
It's quite likely that greed was the motivator that induced the elderly couple to invest in this deal. Once you get the taste of a lot of money, you want more and more. It's a common story. It's on the internet every day - if you take the lure. Unless the elderly couple was mentally impaired, they took the lure believing something that was too good to be true.
cochiserocks
Nov 24, 2009 9:23 AM CST
It went wrong, but good on them for taking a chance so late in life - I assume they're not totally broke now - or the story would have highlighted it - hope not - and if so - they had an adventure and it didn't work out. In terms of risk reward - if I was 80, and I have enough money left at the end of it - I'd probably take a crazy punt too. Beats the crap out of sitting in front of the TV peeing into a bottle.
yellowjeep
Nov 24, 2009 8:53 AM CST
So you think that they were rightfully scammed out of money that was theirs? They are old so they have no reason to have the money anymore. Yes, your logic makes perfect sense to me. Maybe they should have just given it to you as a tax deductible donation. Also where did it say that they wanted more money? I missed that part.

 
fraud • scam • Orange County • gold mine • John Arthur Walthall

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