A battle royale over an estimated $500 million treasure that a Florida deep-sea salvage company found last year is due for a fresh round in court in Florida on Monday.

The Spanish government now says the 500,000 silver and gold coins that the company, Odyssey Marine Exploration, found last year in the Atlantic Ocean near Spain came from one of its ships that sunk in a 19th-century naval battle. Spain wants the entire treasure returned, but Odyssey insists Spain may have no right to it.

Lawyers for both sides are due to present arguments Monday morning in a U.S. federal court in Tampa, Florida, in another round of the case that started last year, Odyssey spokeswoman Natja Igney told CNN.

Odyssey found the coins last year and quietly airlifted them in crates from Gibraltar, a British colony on Spain’s southern tip, to Florida for safekeeping. The company then said it was unclear how the huge quantity of coins it found on the seabed had gotten there. It declined to reveal the location, citing security reasons, and mysteriously dubbed the site “Black Swan.”

But the Spanish government, at a recent Madrid news conference, said it’s really not so complicated.

“The mystery is over,” said James Goold, a U.S. lawyer representing Spain, told the news conference. “Using a variety of methods to conceal what it was doing, Odyssey Marine Exploration stripped the gravesite that is the Spanish navy warship Nuestra Senora de las Mercedes of coins and other objects. The coins and other artifacts that Odyssey took from the site are documented to have been on the Mercedes,” Goold said.

The Mercedes was a 34-gun frigate, a ship very common at the time in the Spanish navy. The Mercedes left Peru, stopped in Uruguay and was just a day’s sail from Spain when the four-ship Spanish squadron was attacked by a British fleet in October 1804, according to a Spanish government’s filing to the Florida court. (more…)

Open letter to:

Henry Paulson
US Secretary of The Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

RE: US Silver Eagles Illegal Rationing

Dear Sirs:

It has come to my attention that 1oz US Silver Eagle coins are being rationed by the US Mint to 13 authorized dealers and not being made available to the public in adequate amounts.
http://www.silverinstitute.org/news/pr29may08.html

According to US Law: 31USC5112(e) this action is illegal and I demand that this rationing program end immediately.

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+31USC5112

(e) Notwithstanding any other provision of law, the Secretary shall mint and issue, in quantities sufficient to meet public demand, coins which–

(1) are 40.6 millimeters in diameter and weigh 31.103 grams;
(2) contain .999 fine silver;
(3) have a design–
(A) symbolic of Liberty on the obverse side; and
(B) of an eagle on the reverse side;
(4) have inscriptions of the year of minting or issuance, and the words “Liberty”, “In God We Trust”, “United States of America”, “1 Oz. Fine Silver”, “E Pluribus Unum”, and “One Dollar”; and
(5) have reeded edges. (more…)

Escala Group (ESCL.PK), a global collectibles company in stamps, coins, precious metals trading, and art and antiques, today announced that it has entered into agreements to settle the securities class action lawsuit and shareholder derivative action commenced against the Company and certain of its current and former officers and directors in May 2006.

As part of the settlement of the derivative action, the Company will recover $5.50 million from insurers on behalf of certain of the named defendants on both proceedings. The Company has also agreed to adopt certain corporate governance policies and procedures, and to pay all court-approved attorneys’ fees, up to a maximum of $925,000, together with approved expenses not to exceed $70,000. The Company’s insurer will fund $475,000 of these amounts.

The proposed settlement of the class action litigation provides for the Company to contribute an aggregate of $6 million in cash and 4 million newly issued shares of its stock (subject to increase under certain circumstances) to a settlement fund for the benefit of the class. A substantial portion of the cash contribution will be funded by insurers. If approved by the Court, all claims against the Company and its current and former officers and directors will be dismissed with prejudice and without any admission of liability or wrongdoing.

The Company’s net cash payment obligations under the proposed settlements, after taking into account recoveries, is approximately $1 million.

The agreements are subject to certain conditions, including approval by the court and by the trustees of Afinsa Bienes Tangibles, S.A. and its subsidiary Auctentia, S.A., the Company’s majority shareholders. Both companies, which are named defendants in the litigation, are in bankruptcy proceedings in the U.S. and Spain. The Company understands that the trustees are seeking approval of the settlement under applicable bankruptcy laws.

Antonio Arenas, Executive Chairman, said, “We are pleased to have reached a mutually satisfactory settlement in principle with the plaintiffs and we are hopeful that the settlements will be finalized shortly. “ (more…)

By Kevin Bogardus for The Hill

American coin collectors and art dealers say a rule under consideration at the State Department could dramatically decrease the importation of goods from China, crippling a booming antiquities market in the United States.

The State Department has not yet imposed any restrictions, but officials are considering requiring shippers to provide documentation of ownership when moving goods from China to the United States. Chinese officials, who asked the State Department for the change in 2004, argue the rule is a way to protect China’s cultural heritage and prevent the trafficking of stolen goods.

Coin collectors and art dealers fear more than a receipt will be required. Instead, they expect to have to track an item’s lineage under the new rule.

That could dramatically scale back what is a growing, multimillion-dollar antiquities trade with Asia and foist an unmanageable amount of paperwork on small-business coin collectors, critics claim.

Without the necessary paperwork, customs inspectors could seize the artifacts.

Read Full Story here

Peter Tompa summarizes the first round of releases of information under the FOIA lawsuit launched by ACCG, IAPN and PNG.

The State Department has made its initial disclosures in response to the Freedom of Information Act lawsuit brought by the ACCG, the International Association of Professional Numismatists and the Professional Numismatists Guild. By our count, in that initial disclosure, the State Department released 34 documents in full, 15 in redacted form and has withheld 21 documents. Six documents have also been held for further consultation with another agency before possible release.

The State Department produced several documents that are already publicly available, including the Cyprus MOU and information already up on the State Department Cultural Property Protection web site. Nonetheless, the State Department did also release some relevant documents. These included an “action memo” evidencing the decision to impose import restrictions on ancient coins of Cypriot type. While it is heavily redacted, it does suggest that the decision was approved by the proper decision making authority, Assistant Secretary Dina Powell.

That said, given the redactions, it remains unclear whether or not Ms. Powell was fully briefed about CPAC’s recommendations on extending import restrictions to ancient coins of Cypriot types. While the CPAC report was also produced, it was only produced in heavily redacted form. As a result, it is impossible to ascertain whether CPAC’s recommendations were made known to the decision maker or not. (more…)