August 29 — September 4, 2011 Bloomberg Businessweek
This coin is worth $7.6 million
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The Mystery Of the Double Eagle How did a Philadelphia family get hold of $40 million in gold coins, and why has the Secret Service been chasing them for 70 years? By Susan Berfi eld August 29 — September 4, 2011 Bloomberg Businessweek
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he most valuable coin in the Most, but not all. Some of the coins and a television documentary. And much world sits in the lobby of the slipped out of the Philadelphia Mint of it has centered around a coin dealer, Federal Reserve Bank of New before then. No one knows for sure ex- dead since 1990, whose shop is still open York in lower Manhattan. It’s actly how they got out or even how many in South Philadelphia, run by his 82-year- TExhibit 18E, secured in a bulletproof got out. The U.S. Secret Service, respon- old daughter. glass case with an alarm system and an sible for protecting the nation’s curren- “The 1933 Double Eagle is one of the armed guard nearby. The 1933 Double cy, has been pursuing them for nearly 70 most intriguing coins of all time,” says Jay Eagle, considered one of the rarest and years, through 13 Administrations and 12 Brahin, an investment adviser who has most beautiful coins in America, has a diff erent directors. The investigation has been collecting coins since he was a kid face value of $20—and a market value of spanned three continents and involved in Philadelphia. “It’s a freak. The coins $7.6 million. It was among the last batch some of the most famous coin collectors shouldn’t have been minted, but they of gold coins ever minted by the U.S. gov- in the world, a confi dential informant, a were. They weren’t meant to circulate, ernment. The coins were never issued; playboy king, and a sting operation at the but some did. And why has the govern- most of the nearly 500,000 cast were Waldorf Astoria in Manhattan. It has in- ment pursued them so arduously? melted down to bullion in 1937. spired two novels, two nonfi ction books, That’s one of the mysteries.” ➡ 64 three steel doors in Philadelphia Mint Mint Philadelphia in doors steel three into 1,780 canvas bags and sealed behind wereput tons, 15nearly weighing coins, the coins. None were issued. Instead the of 445,500 pressing finished Mint the way,under was recall gold May,the as since 1907, and 1933 was no diff erent. By Gaudens Double Eagles almost every year behind rising it. the other is an eagle in midfl ight, the sun On right. her in torch hand, left her in Greek goddess, hair fl owing, olive branch image of Liberty, a fi gure reminiscent ofa an is side 1907.one in On cancer from completed the work just before his death Saint-Gaudens and ones, Greek ancient ican coin that matched the beauty of the 1900s. Teddy Roosevelt wanted an Amer- early the in coin gold $20 high-relief a design to Saint-GaudensAugustus tor odore, who had commissioned the sculp- paper currency. for coins gold exchangetheir to izens cit- required and gold of hoarding the Executive Order 6102, which prohibited issued Roosevelt Apr. 5, On insolvency. possible faced country the dwindled, the Federal at Reserve Bank of New York— kept it of supply—much gold the As deposits. other gold and their withdrew and panicked people as under gone alreadyhad banks of Thousands sion. Depres-Great the of midst the 1933,in Mar.RooseveltFranklinon of 4,ration The story begins just after the inaugu- Bloomberg Businessweek August 29 — September 4, 2011 The Mint had produced the Saint- the produced had Mint The It was Roosevelt’s distant cousin, The-
This advertisement led to a 70-year search for other Double Eagles confi scated these The government coins in 2005 noxious or irascible. If he didn’t like you, phia Inquirer that her father “could be ob- his death in until 1990 at age 95, him told the with worked who bord, manic powers. His only child, Joan Lang- this in story, talis- possessed believedcoins the many so like who, dealer coin and jeweler reclusive a Switt, to Eagles investigation would trace 10 1933 Double them since the 1940s.” seizing been has government the cause Numismatic Society. “They’re famous be- currency and coins can American the at Robert W. Hoge, curator of North Ameri- about seizing and destroying these coins,” says fanatical been has government today.“The continues that vestigation in- launchedthe and it Stack’ssell could pouch. Agents confidiplomatic scated the second by coin before Cairo in him to Double Eagle had already been delivered been taken out of the Mint. King Farouk’s had coins the of some that realized and sale the about heard Service Secret the that though, March, early until wasn’t It Eagle. Double another for announced auction an York, New in dealer coin Feb. on 29, one 1944. issued Treasury the of Secretary the Service, Secret the license for the coin and, unbeknownst to sentative in the U.S. requested an export King Farouk to of E�ypt forit $1,575. A sold royal repre- then who dealer Texas a to 18E, Exhibit now one, sold Switt public. made since documents Service of collectors the day, according to Secret of the most prominent coin dealers and fered several 1933 Double Eagles to some Swittof-Israel named jeweleradelphia 1933 Double toEagles, the furnace. $50 million worth of coins, including the its sent Mint Philadelphia the that1937 task was enormous: It wasn’t until early in the newly constructed Fort Knox . The melted into bars. The bars would be kept be to coins nation’sgold the all dered or- then Mint the of director my.The econo- troubled stimulatethe to posed turn devalued the dollar, which was sup- in This ounce. an of price the increase and ReserveFederal the by held gold effin nationalize, to President the ect, the allowed which Act, Reserve Gold the Smithsonian. to sent were they and saved, been have Vault F-Cage 1. Only two were thought to The fiThe Service Secret the of phase rst rare the Stack’s, month, same That 41-year-oldaPhil- time, this Around In January 1934, Congress passed the Philadel- his shirt pocket, pulled on a new black black new a on pulled pocket, shirt his envelope,intoplastic coin a the in it put tucked he recalls, he next morning, The Hilton. the into checked and Concorde the Yorkon New to London from flew FentonFeb.7,$850,000.1996, On for Parrino Jasper named dealer American an to it sell to arranged and $210,000 It did have an aura.” nice. quite was it and James. along, came “This St. house, auction London his from phone by says Fenton collection,” was “I buying military. quite the a few to coins out of ties the Farouk had client whose jeweler E�yptian an of way by says he got hold of the 1933 Double Eagle himself, dealer coin a and Assn. Trade Numismatic British the of chairman the Then it disappeared. withdrawn. was 185 Lot in Eagle Double minute,Washington.the tolast itthe At pull the coin from the auction and return to E�yptians the asked they called, was it as E�ypt, of Collection Palace the for U.S.as Treasury offi catalog cials the saw soon As 1954. February in Cairo in tion auc- the hold to right Sotheby’sthe won Eagle. Double 1933 the was one pieces; 8,500 contained It collection. coin gold renowned his including belongings, his offauctionto decided RepublicE�ypt of in Monaco. The generals leading the new exileinto sent and Faroukdeposed was tations had run out. limi- of statute the then by but charges, press to wanted Dept. Justice the 1945, cashier.Mint In corrupt a for fence the it was more likely than not that Switt was gation, the Secret Service concluded that Mint. the of employees any from them buy not did he that claimed had the obtained Double But Eagles. he anyrecords where,of howwhen,or he havedidn’t he that said he coins, the about offi only his pronouncement cial story.” the alyze have the right amount of cynicism to an- don’t you that, know don’t you If edge. crafty, they would do anything to get an there, so I can say this: The dealers were thing,”fromdelphia “I’m Brahin.says was never right; he was always right.” customer “the that was said, she ophy, he’d throw you out.” His business philos- Fenton bought the Double Eagle for for Eagle Double the bought Fenton later,Four decades Fenton, Stephen King 1952, in later, years Seven Nonetheless, after a 10-month investi- agents, the to statement Switt’s In Phila- the understand must “You
oPening sPread: U.s. mint/aP Photo; this sPread, clockwise from toP: U.s. mint/aP Photo; aP Photo; american nUmismatic assn. PhotograPh illUstration By credittk PhotograPh illUstration By credittk of 1933: Only One Disk titled TheGolden a 56-pagecatalog Sotheby’s produced been had coin the “If 11. September on attacks terrorist the came Then Knox. Fortin put and Center WorldTrade 7 at vault Treasury the from taken was coinThe late2001. Januaryin wasThat them. between split proceeds the and offauctioned be would coin The ment: to anunusualJustice came agree- Dept. trict Court in Manhattan, Fenton and the U.S.the Dis- in trial togo to scheduled was case the daysbeforefour just and do with its time and money.” government should have better things to the government. Everyone else thinks the the pursuit of these coins is worthwhile is think who people only The mine? want WhySmithsonian]. the [in them theydo of two governmenthas The thought: “I fi coin,”straight says the Fenton. for ght a was it quickly. “Then fairly dropped charges those get to able was who kel, Fran- & Naftalis Levin Kramer of Berke lawyer,States.” trial H. a hiredBarry He and attempt to sell property of the United use own his to convert to “conspiring a movie. Then the coin just vanished.” top of the wardrobe watching. It was like on wasence,” I like felt saysFenton.“I experi-out-of-bodynextdoor. an had “I agents who had been waiting in the room Parrino were thrown and to the fl Fenton oor by gun-wielding operation. cover under- an up set them helped and vice with guns. Well, they did.” was going to come bursting into the room might try to steal it. I was afraid someone lot,”he a thought quiteFenton.says “I shaking were hands “His trouble. pect examined the coin, Fenton began to sus- expert this As own. his of expert coin a along brought had Moore million. $1.65 for Texas, from dealer a Moore, Jack to alreadyhadwhorino, it arranged sell to 22nd floor and presented thecoin toPar- deal,” he says. routine a was Waldorf“It the Astoria. to cashmere sweater, and hopped into a taxi After five years of legal wrangling wrangling legal of years five After of charges criminal faced Fenton Ser-Secret the contacted Moorehad the on suite corner a to up went He coin was in a bulletproof glass case to to case glass bulletproof a in was coin front of a standing-room-only crowd. The appeared once.” alreadydis- had It watch. their on pear way.disap- a towasn’t in going It is, it treasure,whichnational a as it treated government The important. wildly look Sotheby’s. “It was fantastic. That made it says David N. Redden, the auctioneer for car,”armored an Westin atPoint tory deposi- a to day every forth and back it escorted police YorkCity New and police Mint York,Sotheby’s. “The and Expo,Federalthe ReserveNew of Bank Collectibles & Stamp Coin, Beach Long Golden Disk of 1933: Only One. The titled catalog 56-page a produced Stack’s,with workingSotheby’s, it. of photo large a ran YorkTimes New The to hold the coin on the on coin gloves the hold to cotton white wore Lauer Matt rized for private ownership.” autho- ever or “now Eagle Double 1933 terward the coin would become the only Af- release. press the in ForeHolsman Henrietta years,”Director70 Mint said tional numismatic intrigue for more than interna-centerof the been has coin ried atcoin” Sotheby’s sto- 30.July“The on dollar twenty Eagle Double 1933 elusive and “fabled the of auction the nounced stroyed,” Fenton. says left where it was, it would have been de- The auction took place at 6 p.m. inp.m. 6 at place took auction The the at displayed was One Only The Then the publicity campaign began. began. campaign publicity the Then an- Mint the 2002, February In Today show . strange that it was all over.” felt It exhausted. thrilled—and solutely important,”very says Fenton. ab- was “I that’s and marketplace, the in is coins happy, and everybody was. One of these New York ever since. Federalofthe ReserveBank at coin the Numismatic Society, which has displayed American the to it lent He home. Eagle Double the broughtnever one, this but an American interested in no other coins curiosities, not currency.” Togovernment,monetized. the they’re not they’re but Smithsonian, the in are Eagles Double Two not. are that those and monetized are that coins between her $20. The Mint makes a big distinction stepped down from the podium and gave body had to pay $20,” says Redden. “So I some- it, monetize tender.to order “In tion fl oor to make the DoubleEagle legal auc- the on ceremony a held Fore tor for a coin. paid ever had anyone as much as twice the price to $7.59 million). It was nearly brought premium buyer’s percent 15 (a $6.6million for Eagle Double 1933 the purchased had buyer anonymous An down: went hammer his later minutes Six million. $2.5 at bidding the opened U.S. attorney.assistant the Reddenand rector was there. So were Fenton, Berke, the right of the auctioneer. The Mint di-
owning gold coins, some $30 million worth
After Roosevelt banned individuals from Except it wasn’t. everybody with end to wanted “I The buyer, who according to Redden is Direc- Mint afterward, Immediately
was exchanged in one day August 29 — September 4, 2011 Bloomberg Businessweek ➡ 65 66 to keep the coins. the government had to show it had a right that ruled Philadelphia of Court District later, Judge Legrome Davis of the Federal took the matter to the courts. Three years In December thing. any do to required not was it insisted governmentThe forfeitureproceedings. $40 of ment govern- the from compensation coins, the of return the sought Langbords the said: ‘Do I have to buy those, too?’ by Sotheby’s, too. “I called the buyer, who unique.”as but Mint the by just not And Double Eagle had been billed by the Mint Theawkward. little a was “It Redden. ered” 10 more 1933 Double Eagles. “recovhad it announcing release press Augustfully. In in Fort Knox. Berke protested, unsuccess- ing the coins, and that they were already governmentkeepthelawyers was said the Instead, settlement. monetary any tic. But this time the Mint refused to offer 1933 wereDouble Eagles indeed authen- the that him informed they There ton. toMint’sthe meet attorneys Washingin tion. The coins did not come back. Eagles to the government for authentica- deposit box and handed over the Double safe the opened Berke, by companied later,week A ac- uation. RoyLangbord, vice offices in Brooklyn todiscuss the sit- met with Mint attorneys at the Secret Ser contact the Mint. On Sept. to Berke Fenton’s,asked to similar deal a make could they hoping Langbords, this story, citing ongoing litigation. for comment to throughBerke,declined Langbords, The gottenthere. had coins the how family, knew testified, later she the jewelry.in only one contained No it from her mother and said she had box deposit thought safe the inherited had bord at a Wachovia Bank in Philadelphia. Lang at the bottom of safe deposit box No. 442 maker—which closed in 1995—and placed WanaJohn - store department the from tissue and plastic, put in a gray paper bag in wrapped been had coins The Eagles. news: They said they had found 10 1933 Double startling with coin, Farouk the Berke,whohadrepresented Fenton and executivetainment Manhattan,called in Lang Joan auction, the after years Two Bloomberg Businessweek August 29 — September 4, 2011 He hasn’t had the chance. For months Sotheby’s says surprised,” was “I summoned was Berke 2005, June In the documents, legal to According bord and her son, Roy, an enter Roy,an son, her and bord million, or the initiation of initiation the or million, 2005 the Mint issued a issued Mint the 2005 2006 the Langbords 2006 15, 2004, Berke
”
would never be released be never would
meant the 1933 coins coins 1933 the meant Roosevelt’s decision decision Roosevelt’s ------
phia Inquirer article about the gold coins. askew on the wall next to a 2009 hung photos family Yellowing counter. another on sat 1930s the from register cash A figurines. watches, candlesticks, jewelry, with silverfilled werecounters ignoringvisitors. The old wood and glass phone about a business matter, pointedly She walked in briskly and got right on the door.front the on lettersgold in also are partner business her of that and name I. still called It’s store. the to went David, son, other called for a lunch break, and she and her about the size of a violin case. was It trial: the at shown was box posit de safe The there.were coins the ized real- she that said, she open, drilled be to had and warped box the when only was It bottom. the at bag Wanamaker customer and that she never noticed the her mother’s jewelry to sell to a longtime of pieces select to visits the made she said She auction. Sotheby’s the before daythe 2003—including in coins the of discovery her and 1996 between times she had visited the safe deposit box many in off the street. story building is open to those who walk four- the of floor store.”first the Only the in still is chair His it. ran fathermy when did it way the looks It junk. sive expen But shop. junk a like looks “It said: she store, the Describing irritated. slightly and plain-spoken, minded, sharp- teary.also wasoccasionally She the stand the morning of July jewelry,costume and tookpantsuit tan from the family store on Jewelers Row. at a Philadelphia courthouse, just blocks began back them get to trial the coins, the found they say Langbords the after years a safe depositbox placed at thebottom of tissue andplastic and had beenwrapped in Ten 1933DoubleEagles On day five of the trial, U.S. Mint of Mint trial, U.S. the five of day On After Langbord testified, the judge the testified, Langbord After show trial the Recordsat introduced a in simply dressed Langbord, Joan This July, eight Switt & Ed Silver, though her
19. She was Philadel - - - -
lutely done.”lutely Wedone. areabso wearedon’t, we If and thieves swindlers. We from have to care on principle. money its protects government The something. means It faith and credit of the U.S. government. full the carry wallets your in have you bills and coins The Switt. He’s Israel not tion. We know how Fenton got his coin. off. You saw- ofmonetiza thecertificate one auctioned Wecare? we do “Why coins: the of pursuit long ernment’s govthe discussed also Switt.She Israel to traced be could found been had that the Mint. And, left she said, every single legally coin Eagles Double 1933 no that showed1940s the investigationof vice the Philadelphia Mint and the Secret Ser from documents that argued Romero back to Fort Knox. later the Double Eagles minutes were on their way Fifteen coins. the past slowly walked jury. They the of front in placed background in a secured glass case, velvet were blue a against out spread coins, Theovernight. Mint Philadelphia the at tucky to Philadelphia and stored in a vault from flight Ken- a on police Mint by ried the courtroom. They had been hand car into Eagles Double 10 the brought ficers out there. I haven’t seen them. But it it But wouldn’t surprise me.”them.
from left: the granger collection, new york; ny daily news/getty images