Owner of Austin vault accused of fraud in missing bullion

The founder and former majority owner of a downtown Austin vault has been charged with fraud and misusing money customers gave him to buy gold, silver and platinum on their behalf.

The Austin American-Statesman reports that federal prosecutors charged Charles McAllister on Tuesday in the case of millions of dollars’ worth of gold and silver bullion that vanished from Bullion Direct over two years ago.

The indictment says the government would seek more than $16 million from McAllister under U.S. criminal forfeiture statutes.

Hundreds of investors learned in July 2015 that the bullion they thought they’d purchased had disappeared from two safes in Austin. Prosecutors allege that instead of buying the precious metals ordered by his customers, McAllister used their money for himself and his business.

An attorney for McAllister didn’t respond to the newspaper’s requests for comment.