FBI Sued After Allegedly Losing Valuable Rare Coins It Seized During Raid

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Coins the FBI still has not given back are worth an estimated $123,419.

The FBI is being sued after seizing the contents of safe deposit boxes and allegedly failing to return all of what it seized.

Donald Mellein was storing 110 gold coins in one of the boxes. The FBI initially said it did not have the coins, but Mr. Mellein’s legal action resulted in the agency acknowledging it did have 47 of them.

The FBI returned the coins but still has not given back the other 63, which are worth an estimated $123,419, according to one of the new lawsuits.

“Don’s gold coins were completely secure until FBI agents broke open the safe-deposit box looking for property that could be forfeited. Their disappearance can only be explained by the acts or omissions of the FBI agents who broke into the box and rummaged through it. The FBI never should have broken into the safe-deposit boxes in the first place but, once it did, it became responsible for returning everything it had custody of, unless it had a lawful reason to keep it,” the suit, filed in U.S. court in California, states.

Jeni Pearsons and Michael Storc were storing silver and cash in another one of the boxes. The FBI tried keeping the items, but eventually gave up. Agents returned the $20,000 in silver, but held on to $2,000 in cash, according to another suit.

In both cases, the FBI has denied responsibility, stating there was “no evidence of negligence or wrongful acts on the part of any FBI employee.”

“Jeni and Michael are entitled to have their cash returned, or to be reimbursed for its loss, regardless of whether they can prove that some FBI employee did something wrong or was negligent. Whatever the reason for the cash disappearing, the government is responsible for either returning the cash to Jeni and Michael or compensating them for what it took,” the other suit states.

The FBI said it cannot comment on pending litigation. It pointed to a previous statement on a ruling that found agents investigating U.S. Private Vaults did not mislead the court.

Lawyers at the Institute of Justice, which are representing the plaintiffs, are asking the court to award damages to the plaintiffs and declare federal law unconstitutional as applied by the FBI in the raids.

By Zachary Stieber

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