Coin dealer heads to prison in $3M fraud case

TAMPA — Tampa coin dealer Mark Yaffe, 55, was sentenced to 20 months in federal prison for conspiracy to commit bank fraud. Yaffe, who pleaded guilty to the charge in May, was also ordered to pay more than $3 million in restitution.

As part of the conspiracy, authorities say Yaffe signed loan agreements with Sovereign Bank for $35 million as the vice president and principal of Tampa-based National Gold Exchange. The company specialized in the warehousing, sale and distribution of rare coins, and its assets were used as collateral for the loan. Yaffe signed the loan agreements in his role as vice president, according to a statement from the U.S. Attorney's office.

During a July 2009 audit, Yaffe provided Sovereign with a false borrowing base report, citing nearly $5 million in false sales, according to the statement. Yaffe also transferred more than $3 million out of NGE bank accounts that were part of Sovereign's collateral.