A story in Saturdays editions of The Washington Post stated that Douglas Casey is employed by First Georgetown Securities. Casey has not been employed by First Georgetown for several months.
A Washington gold and silver coin firm closed its doors this week, leaving more than 100 customers about $400,000 out of pocket. One investment club is said to have lost more than $20,000 when The Henry Co. of 1511 K Street N.W. was unable to make good on deliveries.
An attorney for Henry said the company will file for bankruptcy sometime in the next fortnight. Meanwhile federal authorities are looking into the possibility of wrongdoing.
This is th fourth such case in the Capital area in approximately two years. All have involved companies that sprang up in the heady days of the gold boom. Many were caught short when they speculated and gold prices slipped. In two of the cased investors lost $487,000 and $240,000. no prosecutions ever resulted.
William M. Holme of Falls Church said he advanced the Henry Co. several thousands of dollars last year for the future delivery of four bags of silver coins. The money was supposed to be kept in a trust account. Holme said he has been unable to get either his silver or his money back.
Carl Shaw of Ft. Meade said he has a cancelled check for $2,150 he paid Henry to buy 16 Austrian 100 coronas in December. Last week he was informed the company could neither make delivery nor give him a refund. When Shaw asked the president, Robert, K. Henry of Bethesda, what he had done with his money. Shaw says Henry replied it would be too difficult to tell, that he would have to explain the hedging process to him.
Sources close to the case said Henry had been trading with the Acli International Commodity Exchange in New York and had had his account cancelled when he was unable to make margin calls. Henry's lawyer denied there was any wrongdoing and attributed Henry's losses to bad business judgment.
Prior to founding The Henry Co., Henry worked as a salesman for Kimberly Case & Co., another Washington gold and silver coin dealer. Kimberly went out of business in December 1974, after the Securities and Exchange Commission began investigation of its sales practices, notably "blind" phone calls by the firm's staff to Washington area residents to try to get them to invest in gold.
Yesterday Douglas Casey, who now works for First Georgetown Securities, said no one had lost any money because of Kimberly Case's demise. It was a different story at Jones-Ramey, a Washington gold coin company that died in 1974. Sixty investors lost $240,000 when th firm could not make deliveries. The government decided not to prosecute because its investigation showed no criminal intent. "Jones and Ramey just got in over their heads." an attorney commented.
Another dealer, Rober Ward, operated under a variety of names, including the Washington Gold Exchange, the Washington Silver Exchange, the Washington Coin Exchange and Gold Resources, Inc. His personal bankruptcy in 1975 listed $487,000 in liabilities.
Ten days ago, after it was evident his company was in trouble. Henry sought a merger with Reserve Precious Metals, Inc., of Fort Lauderdale.(Henry Had had an office not far away in Hallandale, Fla., until it closed last fall.) Lew Monk, Reserve's president, said he refused to bail Henry out because he thought his business was not salvageable. Henry then decided to declare bankruptcy.