Precious metals scam nets Texas man $1 million, 6.5 years in federal prison

Investors across the United States who believed a Beaumont, Texas, man's golden promises of precious metals were taken for more than $1 million.

Michael James White, 35, pleaded guilty to wire fraud and was sentenced to 6.5 years in federal prison by U.S. District Judge Marcia A. Crone on Sept. 17, U.S. Attorney for the Eastern District of Texas Damien M. Diggs announced in a news release.

White also must pay $1,179,216.92 in restitution.

Investigators state that beginning in 2020, for about three years, White defrauded victims throughout the United States for more than $1 million.

The court heard that White owned and operated Gold Pro LLC, a business in Vidor, Texas, that bought and sold precious metals, including gold and silver.

The business promised buyers precious metals, then received payment through wire transfers from the buyers' bank accounts to Gold Pro's bank account.

The company marketed the products as "financial security for future financial uncertainty."

Authorities stated that White used email, telephones and computer chat to discuss the amount of precious metals potential buyers would purchase, then they would agree on a price for the metals and delivery.

Authorities said that payment was received in several cases but White did not deliver the precious metals, delivered a product of lesser value, or delivered fake precious metals.

The FBI and the Beaumont Police Department investigated the case, which was prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.