Midlothian Man Pleads Guilty to Involvement in Precious Metals Fraud

RICHMOND, VA—James F. Price, 61, of Midlothian, Virginia, pleaded guilty yesterday to a single count of mail fraud, in violation of Title 18, United States Code, Section 1341.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Michael F.A. Morehart, Special Agent in Charge of the Federal Bureau of Investigation’s Richmond Field Office; and Keith A. Fixel, Inspector in Charge of the U.S. Postal Inspection Service’s Charlotte Division, made the announcement after the plea was accepted by United States Magistrate Judge M. Hannah Lauck.

Price was indicted on January 17, 2012 by a federal grand jury on four counts of mail fraud. He faces a maximum penalty of 20 years of incarceration when he is sentenced on June 21, 2012.

In a statement of facts filed with his plea agreement, Price admitted running a business called Madison Precious Metals. The business collected funds from investors, falsely claiming that it would use the funds to purchase precious metals. Price then converted those funds to his own use. In his plea agreement, Price agrees to pay just over $4.6 million in restitution to victims.

The investigation was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Commodity Futures Trading Commission. Assistant United States Attorney Michael C. Moore is prosecuting the case on behalf of the United States.