Bloomberg News

Israel Discount Bank Sues Vault Over $17 Million Coin Cache

February 15, 2012

(Updates with excerpt from filing in third paragraph.)

Feb. 15 (Bloomberg) -- Israel Discount Bank of New York sued Delaware’s First State Depository Co. asking a judge to preserve a $17 million collection including rare gold and silver coins being held as collateral for loans.

The depository firm in Wilmington is transferring the coins in violation of an agreement with the bank, a unit of Tel Aviv- based Israel Discount Bank Ltd., according to a Feb. 13 Delaware Chancery Court complaint.

“In addition, IDB discovered that the defendants are marketing for sale and are attempting to sell” some of the assets without permission, the bank said in court papers.

The bank asked a judge to freeze the assets in Delaware, forbid coin transfers and enforce its right to inspect the deposits.

Included in the cache, the bank said, are more than 12,000 rare presidential or Sacagawea dollar coins with missing edge markings; other collector-quality gold and silver coins; and bullion, according to court papers.

Officials at First State Depository weren’t immediately available to comment on the lawsuit.

Israel Discount Bank fell 4 shekels to 528 in Tel Aviv trading today.

The case is Israel Discount Bank v. First State Depository, CA7237, Delaware Chancery Court (Wilmington).

--With assistance from Michael Bathon and Steven Church in Wilmington, Delaware. Editors: Andrew Dunn, Mary Romano

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus