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National Gold Exchange case yields nugget

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By MICHAEL SASSO

msasso@tampatrib.com

Published: November 11, 2009

TAMPA - Mark Yaffe's opulent mansion in Avila always has been the most sensational aspect of National Gold Exchange's bankruptcy case.

New documents filed in the case reveal the cost of maintaining the $25 million home: about $74,000 a month.

This week, two parties in National Gold Exchange's bankruptcy case filed objections to its plan to exit Chapter 11 bankruptcy protection. On Tuesday, the U.S. Trustee's office objected to the plan in part because Yaffe, who owns National Gold Exchange with his brother, proposed to pay himself $100,000 a month to run the business after it leaves bankruptcy protection.

That's $1.2 million a year, or 71 percent more than his old salary of $700,000. That "does not appear warranted under the circumstances of this case and reorganization," the trustee wrote.

Meanwhile, National Gold Exchange's biggest creditor, Sovereign Bank, notes that $74,000 of Yaffe's proposed $100,000 salary would go toward maintaining his mansion in Avila.

This week, 12 of 23 creditors in the case voted to reject the Chapter 11 plan, although the judge has the final say.

National Gold Exchange's bankruptcy attorney, Rich McIntyre, said the objections might be moot. The gold and rare coin business is in mediation with Sovereign Bank and expects to reach a deal all sides can live with.

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