When precious metals prices seem too good to be true this is often what happens…
I have put together a ‘post mortem’ of The Tulving Company.
It covers in great detail what happened (and may have happened) to The Tulving Company. Spoiler: I believe it started with The Tulving Company being long gold and/or silver in the futures market in 2011, and owing a large amount of money. I believe they then sold off their inventory by mid-2012 to pay the debt, and started using customer funds at that time, causing delays of several weeks. They then tried to ‘double up’ on the speculative futures bets (and likely earned income writing naked put options), which backfired in mid-April, 2013, with Tulving owing an estimated ~$40M.
The Tulving Company is Out of Business
March 3, 2014 3:45PM EST
As we predicted/requested on Friday, The Tulving Company has gone out of business, as of Monday morning (March 3, 2014). They have not answered their phones since Friday, February 28, and we have independently confirmed that they have ceased operations, and the BBB and BCA believe this as well.
March 7, 2014 6:30AM Yesterday, a sign was placed on the door of The Tulving Company stating that they are closed, and more information will be available next week.
This page will be updated as more information comes in. We also have a page with pre-shutdown information on Tulving.
We hope to update this page with information about what will happen next. At this point, our best guess is that The Tulving Company will file for bankruptcy. Unfortunately, there is a good chance that there will be little in the way of available assets with which to compensate those whose orders were not fulfilled.
Tulving Intends to File for Bankruptcy
5:19PM EST 06 Mar 2014
We have just heard from a reliable source that Tulving intends to file for bankruptcy.
A search of court records does not show any filings at this point. We will update as we get more information.
If you are looking to get important updates, you can sign up for the mailing list.
This mailing list will only be used to provide important updates regarding The Tulving Company (such as if they file bankruptcy). Although it is intended primarily for those who have placed orders within the past year, anyone is welcome to join the list.
Class Action Lawsuit
March 6, 2014 7:45PM
We have just heard from an attorney whose firm has just filed a class action lawsuit against The Tulving Company and Hannes Tulving personally. The case number is 3:14-cv-01054.
He is looking to hear from victims of The Tulving Company as soon as possible.
The attorney is Karl S. Kronenberger of KRONENBERGER ROSENFELD, LLP, and can be reached at [via E-mail] or via phone at (415) 955-1155, x-150.
If you placed an order with The Tulving Company and have not received it, I would urge you to contact this attorney as soon as you can.
If You Have Unfulfilled Orders
If you have unfulfilled orders, I would recommend checking this page frequently for updates.
If You Had an Order Fulfilled Recently
You may want to check this page occasionally to see if The Tulving Company files for bankruptcy, and if so, to verify that doing so would not affect you.
Here’s the bad news.
‘Preference’ is a bankruptcy term for when an insolvent company (one about to go bankrupt) sends money or goods to a debtor (which includes customers), that can later be taken back by the bankruptcy court. The idea is that a company about to go bankrupt might give money to their friends, favorite customers, etc. So the laws allow the bankruptcy trustee to go back up to 90 days before bankruptcy is filed (1 year for ‘insiders’, if you were in a position to influence Tulving) and take back payments (which could include metal), which would be split equitably among all creditors (customers).
If you sent The Tulving Company metal, and received a check within 90 days before bankruptcy is filed, there is a very good chance that it will be considered a preferential payment, and you will be required to return the money.
If you sent The Tulving Company cash, and received metal within 90 days before bankruptcy is filed, there is a chance that it will be considered a preferential payment, and you may be required to return the metal. We have been told by an attorney that it is rare for trustees to request the return of products during a bankruptcy; however, it is more common if there is fraud involved (which may be considered the case here), and may be more common for goods that are easily returned that keep their value well (as is the case here).
March 4, 2014 12:18PM EST
We will updated this page immediately if we hear that The Tulving Company has declared bankruptcy.
If The Tulving Company does not plan to declare bankruptcy, it seems like any 3 creditors (customers) could declare an “involuntary bankruptcy”. There are restrictions for this, but they are likely met here. It sounds like involuntary bankruptcy is not commonly used, but fraud and/or ponzi schemes are typical reasons to force a company into involuntary bankruptcy. However, it appears that involuntary bankruptcy is unusual unless the company has significant assets. From the looks of things, The Tulving Company has minimal assets (however, there remains a chance that there are significant assets).