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IRS Can't Seize Non-CUSIP Products For $7M Gold Fortune

Gold Fortune
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EDITOR NOTE: His name is Walter Samaszko. A gentleman who largely kept to himself, he died recently with only $200 in his bank account. If his banked assets defined his identity, he was on the verge of being destitute. Yet a poor man he was not, as authorities would later find out. Perhaps the IRS was taken by surprise when they found $7 million in gold fortune stashed in his garage. They claimed $800,000 of it, roughly 11%. We knew Walter quite well. He was a client of ours, and we’re happy to have served him. When he died, his bullion was easily converted to cash to cover his debts. But his non-CUSIP gold had to go through the proper coin auction channels because they were “non-fungible.” They were also not “trackable.” You see, Walter valued freedom and privacy. He valued holding assets that were neither subject to institutional fees nor manipulation, and certainly, he valued assets that were neither trackable nor confiscatable by the government, should Uncle Sam ever go against his American principles and play the overreach card. If the IRS can’t seize Walter’s non-CUSIP assets to pay its “claimed” debt, then Walter made the right decision. The IRS can’t claim what’s not in their records. And why should they? It’s none of their business. To end the story, his estate was auctioned off as the Infamous Nevada Recluse Hoard and his profit went to a first cousin, a substitute teacher. Note how the person who coined the term colored Walter’s values toward freedom with a tinge of “pathology.” That tendency reflects the propagandistic leanings of any centralized government. For the values of financial independence and privacy that Walter espoused, he certainly achieved it. He also became a multimillionaire in the process. 

Even though he lived in the same quiet neighborhood for decades, no one seemed to know of 69-year-old Walter Samaszko Jr., or of his amazing gold fortune worth millions piled quietly away in his garage.

Mr Samaszko, as well as his secret, were so unknown that weeks passed before authorities discovered he had even died in May.

Today about half of 135-pounds of gold coins discovered weeks after his death inside his Carson City, Nevada home will be auctioned off in a city courtroom.

The gold fortune is expected to net about $3 million toward some $800,000 in government estate taxes and fees.

The obvious profits from any sales beyond that amount will go to Samaszko’s first cousin and sole heir, Arlene Magdanz, a substitute teacher in San Rafael, California who hadn’t spoken to him in at least a year.

When a cleanup crew was sent to his property it was only then that his multi-million dollar stash tucked inside old ammunition boxes was discovered.

Authorities say it took an exhaustive search to locate Ms Magdanz whose first words upon hearing of the inheritance in September were ‘Oh my God, Oh my God,’ according to her attorney.

Auction: Nearly half of 135-pounds of gold coins discovered in this Nevada home's garage in May will be auctioned off toward taxes

Heir: Profits beyond those toward taxes will go to Mr Samaszko¿s first cousin and sole heir, Arlene Magdanz, a substitute teacher in San Rafael, California, pictured

The auction will include only the bullion coin collection, not the collector's edition coins, said Alan Glover, Carson City's clerk recorder who will oversee the auction.

'They're buying and bidding on an ounce of gold, pure gold by the weight,' Glover said.

The bidders are all professional coin collectors who regularly make purchases ranging from $3 million to $10 million, he added.

Coins have been grouped into 11 sets based on type, and the sets have been weighed by the ounce. The collections range from 24.1 troy ounces to 602 troy ounces.

n total, about 135 pounds of gold is to be sold at auction, which Glover said is expected to net about $3 million. Another auction for the larger half of the collection is likely later, he said.

Officials discovered the trove neatly wrapped and stored mostly in ammunition boxes stacked on top of each other.

There were more than 2,900 Austrian coins, many from 1915; more than 5,000 from Mexico; at least 500 from Britain; 300 U.S. gold pieces, some dating to 1880; and more than 100 U.S. gold pieces as old as the 1890s.

Adding up: Officials said that much of Mr Samanko's wealth was from $20 U.S. gold coins (stock photo)

Royal find: He also had a collection of British sovereign coins that depicted Queen Victoria, in both her earlier and later years on the throne (stock photo)

Among the coins were meticulous records of the purchases dating back to at least 1964, when gold averaged about $35 per ounce. The precious metal currently sells for nearly $1,600 an ounce.

Authorities believe that his mother, who lived with Samaszko until her death in 1992, purchased most of the coins.

‘They were most likely taking money out of their stock accounts and buying gold with it,’ Mr Glover said.

Despite the millions of dollars in his garage, Samaszko didn't appear to lead a luxurious life.

Records show he only withdrew about $500 a month to pay modest bills.

He died with $1,200 in a checking account and just a bit more than $165,000 in a money market and mutual fund account.

Since learning of her inheritance, Magdanz has shunned publicity and not made any comments about the fortune.

Glover had died from heart problems, a coroner found, at least one month before he was discovered.

Leaving no will, and with no known relatives, officials set about tracking down a list of people who had attended Samasko's mother's funeral after she died in 1992, the Las Vegas Sun reported.

She had not spoken to her cousin for a year.

Other things found in the 'anti-government' pensioner's home included a stash of conspiracy theory books and several guns, Mr Glover said.

He rarely went out and never went to a doctor, Mr Glover said.

Samasko had lived in the house since the 1960s. Records show that he hadn't held down a steady job since 1968. His mother also lived there until her death in 1992.

Cases like this are rare within Carson City.

‘I’ve never had a case like this, and not in this amount,’ Mr Glover said, adding thoughtfully: ‘(Mr Samasko) had some definite survival tendencies.’

Original post from DailyMail

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