THOUGHTS ON THE 1933 DOUBLE EAGLE CASE

I am so glad the post in last Sunday's E-Sylum prompted me to read David Tripp's book again. It was a thoroughly amazing second reading, refreshing my memory of this amazing tale. I will never forget going to the LA office of Sotheby's with other PCGS graders and giving our pre-grade to the coin in a room surrounded by Secret Service agents (or Mint police or whatever they were), who never took their eyes off the coin. They were replaced every twenty minutes by others. I believe there were nine of them guarding the coin in shifts.

There has been so much speculation and misinformation about the coin sold in 2002. Here is my take:

If anyone has read David Tripp's book (Illegal Tender), they would know that the 1933 double eagles almost certainly were "converted" by the Mint Cashier George McCann in 1936 (swapped $500 in gold for the 25 1933 coins). Pretty good evidence. They all were sold into the market by a single source, Israel Switt, who sold the first ones to James Macallister, others to Ira Reed and Abe Kosoff, and possibly other dealers/collectors.

McCann was never convicted of this, because of the statute of limitations had expired, but did serve a year and a day in jail (convicted in 1941) for theft of worn coins brought to the Mint for exchange, while he was Cashier. Switt never revealed from whom he bought the coins, but it was almost certainly McCann. McCann lost most of his money in the stock market in 1938.

Only the two chattel pieces in the Smithsonian (not issued, so not coins) do not have questionable provenance, while the one sold in 2002 is the only one with legal tender status. This is why the government won the case against the Switt heirs and have possession of the ten coins. Those who believe these coins may have been obtained in 1933 should read David's excellent book. I believe they will change their minds.

Also, the main reason that the government settled with Steve Fenton was the 1944 export license issued for the Farouk coin (they split the proceeds in the sale in 2002 for over 7.5 million). The government felt that a jury might think the 1944 export license might sway them and they would lose the case.

Also, John Kraljevich and I became totally convinced in Steve's London shop that the coin sold at the 2002 auction was the Farouk coin. Steve showed us other coins that came with the 1933 and they were from the Farouk sale. We both left his shop totally convinced that the 1933 double eagle was the Farouk coin.

The story Fenton was told by the seller (a Cairo jeweler) was that an Egyptian Colonel had obtained them in the Farouk sale. Another story the author heard (not in the Tripp book) was that Farouk's physician was given these coins in payment for his services, as the new government would not pay him. Neither of these may be accurate, but the coins sold to Fenton all matched the 1954 catalog, including at least one unique pattern that could have come from no other source! Several other patterns were plated in the catalog and the coins bought matched the photographs.

The money received by McCann was deposited in his account in 1936. Switt and his brother-in-law partner, Edward Silver, had withdrawn $1,000 on ten occasions from January 9, 1936 to June 1, 1936. George McCann had unexplained income of $9,837.50 for 1936 and would not answer as to the source of the income in 1940, during the investigation of the theft of the worn coins, as noted earlier. McCann went to jail for a year and a day for these thefts.

McCann's first deposit was February 25, 1936 and his last was June 2, 1936. The money was not just for the 25 1933 double eagles, but also for 1931 and 1932 examples, as Switt sold these two dates in quantity to several dealers. McCann could not be prosecuted, as noted, as the statute of limitations had expired. Some 1933 eagles may also have been included in the sales.

David Tripp’s research was used by the government in the Switt trial and the outcome in favor government was the result of overwhelming evidence that Switt obtained the coins from McCann. As Cashier, McCann was really the only one who had unfettered access to the coins. The money deposited in his account led the investigators to the only logical conclusion: George McCann did it.

Fred Michaelson adds:

To read the earlier E-Sylum article, see: MORE MINT ROBBERIES (www.coinbooks.org/esylum_v17n15a20.html)

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