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Egyptian Double Eagle
The missing Double Eagle was acquired by King Farouk of Egypt, who was a voracious collector of many things, including Imperial Fabergé eggs, antique aspirin bottles, paperweights, postage stamps—and coins, of which he had a collection of over 8,500. In 1944 Farouk purchased a 1933 Double Eagle, and in strict adherence with the law, his ministers applied to the United States Treasury Department for an export license for the coin. Mistakenly, just days before the Mint theft was discovered, the license was granted. The Treasury Department attempted to work through diplomatic channels to request the return of the coin from Egypt, but World War II delayed their efforts for several years. In 1952 King Farouk was deposed in a coup d'etat, and many of his possessions were made available for public auction (run by Sotheby's) – including the Double Eagle coin. The United States Government requested the return of the coin, and the Egyptian government stated that it would comply with the request. However, at that time the coin disappeared and was not seen again in Egypt.
In 1996 a Double Eagle surfaced again after over forty years of obscurity, when British coin dealer Stephen Fenton was arrested by US Secret Service agents during a sting operation at the Waldorf-Astoria Hotel in New York.[1] Although he initially told investigators he bought the coin over the counter at his shop, he later changed his story. Under sworn testimony, he insisted the Double Eagle had come from the collection of King Farouk, though this could not be verified. Charges against Fenton were subsequently dropped, and he defended his ownership of the coin in court. The case was settled in 2001 when it was agreed that ownership of the Double Eagle would revert to the United States Government, and the coin could then legally be sold at auction.[2] The United States Treasury issued a document to "issue and monetize" the coin, thereby making it a legal-tender gold coin in the United States.
When the coin was seized, it was transferred to a holding place believed to be safe: the Treasury vaults of the World Trade Center.[3] When the court settlement was reached in July 2001, only two months before the Trade Center was destroyed, the coin was transferred to Fort Knox for safekeeping.
On July 30, 2002, the 1933 Double Eagle was sold to an anonymous bidder at a Sotheby's auction held in New York for $6.6 million, plus a 15-percent buyer's premium, and an additional $20 needed to “monetize” the face value of the coin so it would become legal currency, bringing the final sale price to $7,590,020.00, almost twice the previous record for a coin.[4] Half the bid price was to be delivered to the United States Treasury, plus the $20 to monetize the coin, while Stephen Fenton was entitled to the other half. The auction took less than nine minutes.
