Four men are charged, including three men from New Jersey, for defrauding a commodities trading business out of $800,000 in what the four men initially pitched as a possible joint venture to buy and sell the Mexican gold.

Harold Mignott, aged 54, of Voorhees, James Adkins, aged 64, of Hillside, Jerrid Douglas, aged 43, of Freehold, and Roy Johannes Gillar, aged 44, of Las Vegas, are each charged with one count of the wire fraud.

The men falsely stated that their company could provide a standby letter of credit from a major international banks backed by the Mexican gold bonds so the victims of the company could purchase gold oversees and also sell it to gold refineries, said the authorities.

The letter of credit is a guarantee of payment issued by a bank. The authorities said that, victims of the scam never received the letter.

Douglas was a long-time friend to one of the victims, as per the criminal complaint.

The four men involved in scam used the money to buy luxury cars, high-end watches and also to make mortgage payments on their homes.  

All four men charged are either the owners or high-ranking officials of the following companies: Grupo Munidal Baloboa, an investment holding company in the Panama City, Panama; Brilliant Petroleum Comany of Voorhees; All Bloom Trading Limited of Hong Kong and also Gillar Worldwide Group Limited.

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While Gillar was held, the other three men who are charged in the case were released on the $200,000 bond following an appearance in federal court in Newark on Wednesday.

The two victims are residents of the Matawan and Watchung, said the court papers.

Mrudula Duddempudi.