Langboard hoard of 1933 double eagles.

Joan Langbord and her adult sons, Roy and David Langbord, assert rightful ownership of the gold pieces, opposing the Government’s claim that they belong to the United States. Their claim stems from the (re)discovery of 10 double eagles in a safety deposit box around 2003.
Following the auction sale of the Fenton coin, Joan Langbord reportedly found ten 1933 double eagles in a safe deposit box that had belonged to her late father, Israel Switt. Decade prior, the Secret Service had suspicions regarding Israel Switt, an antique dealer in Philadelphia, and George McCann, a former cashier at the Philadelphia Mint, for allegedly smuggling these double eagles unlawfully. However, Switt’s direct involvement in this alleged scheme was never substantiated. Among the limited known existence of about two dozen 1933 double eagles, several have been seized by the government. Prior to the Farouk specimen’s appearance, associated with Stephen Fenton in an FBI sting operation, none had long remained in collectors’ hands. In 2004, the Langbords’ attorney informed the Mint about the discovery of the Double Eagles,

Background: The 1933 Double Eagles, ten gold pieces valued at $20 each, were created based on President Theodore Roosevelt’s request by Augustus Saint-Gaudens shortly before the sculptor’s death in 1907. Over the next twenty-five years, the U.S. Mint circulated millions of these Double Eagles as legal tender. However, the Great Depression led to a shift. Shortly after President Franklin Delano Roosevelt’s inauguration on March 4, 1933, a series of orders were signed, effectively barring banks from dispensing gold.

Legal Battle Over 1933 Double Eagles: Government Seizure and Constitutional Rights.

Reserved Ownership: Langbords’ Submission of 10 1933 Double Eagles for Authentication to the US Mint

The Langbords initially surrendered the Double Eagles solely for authentication purposes, explicitly retaining all rights and remedies related to the coins. Despite the Mint confirming their authenticity in May 2005, they refused to return the coins to the Langbords. In 2004, an attorney representing Joan Langbord and her sons, David and Roy, informed the U.S. Mint of their possession of 10 Double Eagles. This attorney, who had previously worked with Fenton, expressed the Langbords’ interest in a setup akin to the one Fenton had with the government. The U.S. Mint showed willingness toward this proposal. The Langbords allowed their Golden Eagles to undergo authentication but firmly maintained their ownership rights to the coins. Soon after, all involved agencies—the U.S. Mint, the U.S. Attorney’s Office, the Secret Service, and the Department of Treasury—assembled to decide on the next steps. Every agency, except the U.S. Mint, leaned towards pursuing forfeiture. The U.S. Mint argued that as government property stolen from their premises, the coins should be returned without requiring forfeiture.

The government questioned Joan Langbord’s timing in discovering the coins, especially considering her frequent access to the safe deposit box over the years. Despite her admission of checking the box even a day before the auction of Fenton’s Double Eagle, she insisted she had no knowledge of the coins until she found them in 2003, wrapped in a Wanamaker’s department store bag at the box’s bottom. This revelation followed a moment when Roy Langbord, Joan’s son, and Switt’s grandson learned about Fenton and his Double Eagle from an article, prompting them to ask Joan if Switt had more of these coins. The district court overseeing the Langbords’ legal battle with the government highlighted that Joan claimed ignorance of the coins until 2003, a year post the publicized sale of the only known ’33 Double Eagle, but noted that the jury didn’t find her account convincing.

In July of the same year, attorney Berke appealed to the Mint to reconsider its decision, citing precedents involving other coins with uncertain backgrounds and contended that there were no grounds for the government to pursue forfeiture of the 1933 Double Eagles. Approximately a month later, the Mint dismissed Berke’s request in a writing.

The United States Mint has no intention of seeking forfeiture of these ten Double Eagles because they are, and always have been, property belonging to the United States; this makes forfeiture proceedings entirely unnecessary. These Double Eagles never were lawfully issued but, instead, were taken out of the United States Mint at Philadelphia in an unlawful manner. Indeed, the Langbord family was legally obligated to return this property to the United States … and will not be able to establish based on any reliable or admissible evidence how they currently possess, or ever possessed, title to this United States Government property.

US Mint

The Mint showed willingness to discuss the matter, but a meeting involving various agencies led to a divided opinion on pursuing forfeiture, with the Mint asserting the coins as government property. Despite authentication, the Treasury and Mint refused to initiate a forfeiture proceeding and maintained the coins as government-owned. Consequently, the Langbords’ counsel submitted a seized asset claim, but the Mint returned the documents without action. The original argument from the Government seemed to imply that the Langbords willingly handed over the Double Eagles. However, the District Court ruled during summary judgment that the Government’s seizure of the coins was unconstitutional, a point the Government did not challenge on appeal. The District Court highlighted that the Langbords did not intend the transfer to be permanent and promptly requested their return upon realizing the Government’s intention to keep the coins permanently. Seizing property, even if ultimately belonging to the Government, can breach the Fourth and Fifth Amendments, as recognized by the court, due to an infringement on possessory rights. The Langbords, by preserving their possessory right in writing during the transfer, maintained their claim, and the Government’s seizure of the Double Eagles was deemed unconstitutional by the District Court.

The Langbords then initiated a civil action in 2006, citing multiple claims against the Government. The District Court ruled in favor of the Government on certain claims but acknowledged Fourth and Fifth Amendment violations. The Government sought to file a judicial civil forfeiture complaint, which was granted despite objections from the Langbords. A jury trial ensued, resulting in a verdict favoring the Government, affirming that the Double Eagles were stolen from the Mint. On appeal, the Langbords contested the District Court’s rulings on various grounds, including the statutory deadline under CAFRA and the admission of evidence during trial.

2009: US Mint request NGC  to verify the authenticity.

In November 2009, during the legal proceedings, the US Mint formally requested NGC to authenticate and assess the Langbord coins for their genuineness and condition. A specialized team of NGC graders meticulously evaluated the ten coins, resulting in the following grades: one coin received an Uncirculated Details grade, six were assigned NGC MS 64 grades, two achieved NGC MS 65 grades, and the finest example obtained an NGC MS 66 grade.

Following this assessment, all ten coins were securely encapsulated in NGC’s resealable museum holders, each marked with a unique serial number and accompanied by a certificate of their respective grades. NGC’s Chairman, Mark Salzberg, expressed his honor in being entrusted with this certification task by the US Secret Service, underscoring the crucial role that certification plays in preserving these valuable numismatic assets. The coins are now properly identified, authenticated, and safely stored in NGC holders.

In relation to these ten Langbord coins and an eleventh coin recovered by the US Mint , US Mint Director David J. Ryder has made the Mint’s position clear. Joan Langbord, the daughter of Joan Langbord, and her two sons initiated a lawsuit in 2006 seeking to regain possession of the coins, which had been discovered in a family safe deposit box. The Langbord family had previously entrusted the gold coins to Daniel Shaver, who served as the chief counsel for the US Mint. After a thorough examination, officials determined that the coins were indeed genuine and government property, as documented in court records.

July 2011, A judge said coins that were missing for decades belong to the government.

In a momentous legal decision, a 10-member jury reached a unanimous verdict concerning the 10 rare 1933 Saint-Gaudens $20 double eagles that had purportedly surfaced in the possession of the Langbord family from Philadelphia in 2003. The jury ruled in favor of the U.S. government, asserting its rightful ownership of these historic coins. This pivotal decision was announced on July 20, marking the conclusion of the Langbord trial, a process that spanned ten days and culminated after approximately five hours of deliberation.

The deliberations commenced at 10:27 a.m., with the jury leaving the courtroom, and the final verdict was delivered at 3:25 p.m. The task of revealing the jury’s verdict fell to Juror No. 9, who also served as the foreman. Each jury member individually expressed their agreement with the government’s assertion that it had met the necessary burden of proof.

During the commencement of the day’s proceedings, Judge Legrome D. Davis addressed the jury, acknowledging the unique and “unusual” nature of the case. He underscored the scarcity of live witnesses and provided guidance on evaluating evidence, understanding the elements of the forfeiture claim, and the approach the jury should adopt during deliberations.

Judge Davis emphasized the importance of fact-based judgment and highlighted the Latin root of the word “verdict,” which means “speak the truth.” He delineated the standard of proof as a “fair preponderance of evidence,” requiring that the government’s case be “more probably true and accurate than not.” He illustrated this concept by invoking a scale, instructing the jury that even a slight tip in favor of the government warranted a victory for the government. However, he also reiterated that the burden of proof lay with the government.

Furthermore, he clarified the trial as a forfeiture case in which the Langbords contested the government’s right to seize the coins, emphasizing that this was a civil trial rather than a criminal one. The government had to establish, by a preponderance of the evidence, three key points: the coins had belonged to the United States government in the past, they were stolen, and the act of theft was committed knowingly to deprive the government of its property and convert it for personal gain.

After the verdict’s announcement, Roy and David Langbord swiftly exited the courtroom. In 2003, they had surrendered these 10 coins to the government in a bid to have their authenticity confirmed. Subsequently, the government confiscated the coins, prompting the Langbords to pursue legal means to regain possession and ownership. The government also accused Mrs. Langbord’s father, Israel “Izzy” Switt, of illicitly obtaining the coins, although he passed away in 1990 at the age of 95.

Assistant U.S. Attorney Jacqueline Romero, who led the government’s legal team, declared immediately after the verdict that “the People of the United States of America have been vindicated.” She asserted that this outcome should send a strong message that regardless of the duration that stolen government property remains unaccounted for, it rightfully belongs to the government.

Regarding the future of these coins, Romero refrained from confirming an earlier statement suggesting they should be housed in a museum, deeming it a “rhetorical flourish.” However, she indicated post-trial that they were unlikely to be melted down and would probably find some form of public display. Tom Jurkowsky, the Director of the U.S. Mint’s Office of Public Affairs, disclosed that a decision on the coins’ storage or display had yet to be made. Until such determinations were reached, the coins would continue to be housed at the United States Bullion Depository in Fort Knox.

The 10 rare 1933 $20 gold coins were temporarily relocated to Philadelphia during the trial to allow the jurors to inspect them, but they were subsequently returned to the U.S. Mint’s bullion depository in Fort Knox, Kentucky, where they had been stored since 2003.

Romero characterized this case, which she had devoted five years to, as “the coolest case you could get as an attorney.” When asked about potential disappointment among collectors over the coins not entering the market, she emphasized her belief that most coin collectors were individuals of high integrity who would not wish to collect stolen goods.

It’s worth noting that these 1933 Saint-Gaudens double eagle coins were originally valued at $20 each, but one once owned by King Farouk of Egypt commanded an astounding $7.5 million at a Sotheby’s auction in 2002. The majority of the 445,500 double eagles struck by the Philadelphia Mint during this era were melted down into gold bars after the U.S. abandoned the gold standard.

Nonetheless, a Philadelphia Mint cashier managed to distribute some of these coins to a local coin dealer, Israel Switt. In 2003, Switt’s family, including his daughter Joan Langbord and two grandsons, uncovered the 10 coins when they opened a safety deposit box that had belonged to him. The Langbords, upon submitting the coins to the Philadelphia Mint for authentication, found them seized by the government without compensation, ultimately leading to the protracted legal battle. The Langbords contended that the coins rightfully belonged to them. David Enders Tripp, the government’s numismatic expert, expressed personal satisfaction with the verdict, describing it as a fitting conclusion to his decade-long involvement in this captivating story.

August 2011: Judge Legrome D. Davis confirm Government Ownership.

In 2011, a jury rendered a verdict that the coins were the property of the government, but the Langbord family opted to challenge this decision through the appeals process. Recently, Judge Legrome D. Davis upheld the 2011 jury’s conclusion, confirming that the 10 1933 Saint-Gaudens $20 double eagles owned by the Langbord family belong to the government.

This appealed decision, which took place on August 29 2011 in Philadelphia’s U.S. District Court, asserted that the 10 1933 double eagles were originally taken from the U.S. Mint unlawfully. As a matter of legal fact, they continue to be government property, regardless of the circumstances under which they came into the Langbord family’s possession.

The initial civil trial took place in July 2011, during which a unanimous jury decision favored the government’s stance that the 10 coins should be forfeited by the Langbord family. Subsequent to the jury’s verdict, the Langbord family contested the ruling on various grounds. They argued that no reasonable jury could have determined that the coins were stolen or unlawfully removed from the Mint. Additionally, they claimed that the government failed to demonstrate a violation of the criminal statute that formed the basis for the forfeiture action. The family further contended that the jury’s decision made the government’s declaratory judgment claim, which aimed to solidify its title to the coins, unnecessary.

Judge Davis explained the significance of granting the government’s request for declaratory judgment, stating that it served to clarify the legal ownership of the disputed Double Eagles to a greater extent than the jury’s verdict had achieved. In a recent development, Judge Legrome Davis, presiding over the Eastern District Court of Pennsylvania, upheld the prior decision, reiterating that “the coins in question were not lawfully removed from the United States Mint.”

Barry Berke, an attorney representing the Langbords, conveyed their intent to file an appeal, emphasizing that this case raised novel legal questions, including the limits of the government’s authority to confiscate property. The Langbord family looks forward to addressing these significant issues before the 3rd Circuit. Additionally, the family’s lawsuit pointed out a separate incident in which the government had shared the proceeds with the owner after another 1933 double eagle coin was sold for $7.59 million in 2002.

2015 Federal Third Circuit Court of Appeals reversed the 2011 jury decision.

The fate of the Langbord family’s 10 rare 1933 Saint-Gaudens double eagle coins, allegedly discovered over a decade ago, remains uncertain as the Federal Third Circuit Court of Appeals recently vacated an April 17 ruling that had reversed a 2011 jury decision awarding the coins to the government. The latest development indicates a potential renewed legal battle between the government and the Langbord family.

The court’s decision for a rehearing en banc, where arguments from the Langbord family will be heard, raises questions about the legal acquisition of the coins. The Langbords argue that the coins might have been acquired legally, while the government insists the family should not benefit from the alleged theft at the Philadelphia Mint decades ago.

En banc hearings are typically reserved for complex cases with broader consequences. In this instance, the case not only involves the ownership of 10 coins but also broader issues related to a government’s right to seize property and the intersection of forfeiture laws designed to protect individual property rights.

The government’s petition for rehearing, filed on July 1, prompted a reply from the Langbord family on July 20, wherein their lead attorney, Barry Berke, criticized the government’s arguments. The Langbord family contends that the April 17 decision correctly identified the government’s illegal actions, supporting the family’s claim to the coins under the Civil Asset Forfeiture Reform Act of 2000 (CAFRA).

The dispute originated when the Langbords informed the Mint about the coins’ existence in 2004, leading to a legal battle that intensified after a unanimous 2011 jury ruling in favor of the government. Subsequent rulings shifted the burden of proof to the government, requiring evidence that the coins were likely stolen from the Mint. The July 20, 2011, verdict affirmed the government’s ownership, but an April 17, 2015, ruling overturned this decision, ordering the coins returned to the family.

The government’s stance is that returning the coins to the “family of a thief” would allow individuals to benefit from criminal gains. They argue that this decision could limit the government’s ability to forfeit property used in criminal activities and impede efforts to protect government property.

As the legal saga continues, the ultimate ownership of these rare coins remains uncertain.

2016; Third Circuit Affirms U.S. Ownership of Rare 1933 Double Eagle Gold Coins.

The United States Court of Appeals for the Third Circuit, sitting en banc, recently affirmed the United States’ rightful ownership of ten exceptionally rare 1933 $20 gold coins, known as Double Eagles, worth millions of dollars each. The ruling, issued on August 1, 2016, concluded a years-long legal battle over the coins, which had been the subject of litigation since their discovery.

In 2011, a jury determined that the coins were forfeited to the United States as stolen property from the U.S. Mint, and a District Court judge declared that the coins had always been the property of the United States. However, in 2015, a panel of the Court of Appeals vacated that decision, citing a violation of a deadline for administrative action. The recent en banc decision reinstates the jury and district court decisions, asserting that the government did not violate any deadlines and validating its title to the coins.

The 1933 Double Eagles were originally manufactured by the U.S. Mint but were never released to the public due to President Franklin Delano Roosevelt’s Executive Orders taking the United States off the gold standard. Over the years, some of these coins surfaced, leading to an investigation by the United States Secret Service. The government recovered every located 1933 Double Eagle, including one inadvertently exported to Egypt in 1944, which was later brought back to the United States and sold at auction for $7.6 million.

The Secret Service traced all recovered pieces back to Philadelphia merchant Israel Switt. After the sale of one of the coins to King Farouk in Egypt, Switt’s daughter, Joan Langbord, reported finding ten of the coins in a safe deposit box that had previously belonged to her mother.

The en banc Court of Appeals affirmed that the ten coins are the property of the United States, stating that “the evidence at trial demonstrated overwhelmingly that no 1933 Double Eagle ever left the Mint through authorized channels and any that did were either stolen or embezzled.” The decision highlighted the detailed records of the Mint, reinforcing the government’s claim.

United States Attorney Zane David Memeger expressed gratitude for the decision, emphasizing the recognition of the United States’ ownership of these rare coins. Rhett Jeppson, Principal Deputy Director for the United States Mint, lauded the decision as a victory for government property integrity and the rule of law, as well as for the integrity of the numismatic hobby.

The Langbord family, who possessed the coins for decades, intends to seek Supreme Court review, challenging the government’s authority to take and keep citizens’ property. The ruling establishes that the United States is the lawful owner of the 1933 Double Eagle gold coins, potentially concluding this decade-long legal battle.