My Nominee for Worst Coin Dealer of 2011

If this Minneapolis coin dealer is guilty of what he has been accused of he is by far the worst coin dealer I have heard about in quite a while. I will not name the dealer or his business. You can read the article yourself at:

Coin dealer accused of defrauding senior citizens

To recap the article:

• The Minnesota Attorney General's office filed suit against the coin dealer and his business for bilking elderly customers out of thousands of dollars. The suit alleges the coin dealer "lied about the value of coins, failed to deliver promised goods and engaged in other schemes" and charges the coin dealer with "consumer fraud, deceptive trade practices, deceptive acts against senior citizens and unjust enrichment".
• The victims received unsolicited calls from the coin dealer.
• A woman from Texas paid $50,000 for gold coins that she never received.
• A Florida man was talked into exchanging his gold bullion coins (worth approximately $25,000) for "liberty gold coins" (worth about $400) that he never received.
• A Wyoming woman sold her gold coins to the coin dealer for $10,500 but, when the coin dealer received the coins, he told her the price of gold had dropped and he would pay her only $8,500 for the coins. When the woman refused the offer and demanded her coins back the dealer sent her silver coins valued at $1,100.
• The coin dealer convinced a South Dakota man to exchange his Double Eagles for "liberty gold coins". The man sent his coins to the coin dealer but never received anything in return.
• A man from Texas sent his gold coins to the dealer for appraisal but the coin dealer's agent sold the coins without the owner's permission. The gold coins were sold for $296,000 but the owner received only $91,000. He is suing the coin dealer and the business.

The last paragraph of the article sheds a bit more light on this coin dealer's character:

 

Log in or Sign up to hide this ad.

I hate hearing stories of people taking advantage of the elderly. That is pathetic and sad. TC

 

What a looser....

 

The part that going to really sink is that when he goes before the judge he is going
to cry that it was the drugs that made him do this and he will be sent to a rehab and
spend a month or so , Then propley never get any jail time and those people will never
see there money.....Just put him againist the wall and put a bullllllit in this head,,,,,,,,,
Done and Finish.

 

I highly highly doubt he will get any rehab at all...

Drug related offenses are the #1 most common reasons for incarceration in the US and rehab is rarely offered as an alternative

Plus the fact that he defrauded so many people for ridiculous amounts of money is a serious felony and I wouldn't be surprised at all if the White Collar Crime division of the FBI got involved since his scams crossed state lines

This guy is looking at years in prison even if a plea deal is bargained. Hopefully they'll liquidate his assets as well and repay the victims...or at least they could take civil action and sue for all he's worth

 

I wish americans wern't so damn sensitive and demanded public hangings...

 

Yea....Shot him......Then hang him for good measure,,,,Sounds like a good plan to me.

 

One of the many, many reasons I plan on being a police officer. This is wrong, not to mention disgraceful to the hobby.

 

what about glenn beck's gold line and his 240 percent markup on ducats?

 

I don't think there is a crime unless you are lying. A high markup is not illegal as far as I know unless it is in collusion with other sellers. Also, he doesn't own GoldLine, just a spokesman so it isn't his markup. As for the dealer in the OP's article, I'd throw him under the jail.

 

Another sad day for the hobby

 

so you wouldn't call a rip off artist a bad coin dealer huh?

 

I would give this coin dealer life in jail plus one day/dead the only way out!

That one of many that is happening all over the USA Gold & Silver coin
One thing I have done to guard my family from having this happen to them once I am gone.
I have a note book that I keep of fair market value for each coin & coin sets in my collections.you must keep it updated too.
Plus a list of dependable coin dealer.

 

Not sure if he lies, but it is certainly misleading when they promote these heavily marked up gold coins as an investment. I would say being willfully misleading is a grey area at best - maybe not illegal, but certainly not ethical.

 

I don't consider Glenn Beck to be a coin dealer at all and I certainly wouldn't put Goldline at the same level as the dealer in the article. With that said, I don't buy from them and wouldn't because of their pricing, but that doesn't make them criminals.
Half the stock consultants in the country would be in jail if bad investment advice was illegal.

 

that's now what anthony weiner thinks

http://www.ritholtz.com/blog/2010/07/glenn-beck-goldline/

Congress Formally Opens Investigation into Goldline & Other Shady Gold Dealers

New York, NY – Rep. Anthony Weiner (D – Queens & Brooklyn) and House Commerce Subcommittee Chairman Bobby Rush (D – Chicago) formally announced a hearing of the Subcommittee on Commerce, Trade, and Consumer Protection to investigate the business practices of Goldline International, a precious metals dealer that uses aggressive sales tactics and conservative spokespeople such as Fox News’ Glenn Beck to sell overpriced gold coins. Weiner and Rush sent a letter to Goldline requesting information in preparation for the hearing.
The announcement follows an exposé on ABC News which detailed Goldline’s business model. Additionally, the Santa Monica City Attorney’s office launched a joint investigation with the Los Angeles County District Attorney’s office into the possible criminal practices of Goldline International.
To Watch the ABC News Exposé CLICK HERE
In May, Rep. Weiner’s office released a report outlining problems with Goldline
Among the Key Findings of Rep. Weiner’s Report: (Full Report CLICK HERE)
• Goldline Grossly Overcharges For Their Coins
The average Goldline markup was 90% above the melt value of the coin. The largest markup on any coin was 208% above the melt value. Furthermore, the average Goldline markup is 47% higher than better-priced competitors, with some of the company’s markups going as high as 102% compared to its competitors on one of the coins they offered.
• Goldline Falsely Claims To Offer “Good” Investments
By selling gold at twice the melt value, the price of gold would need to double for consumers to break even on their “investment.”
• Goldline Salespeople Misrepresent Their Ability To Give “Investment Advice”
Sales people imply that they are “investment advisors” or “financial advisers” by offering investment advice, which insinuates that they have some sort of fiduciary responsibility to get you the most return on your investment.
However, since they are not licensed investment advisors, they have no such responsibility. In 2006, the Missouri Secretary of States’ Office, Securities Division filed formal consent order against Goldline for exactly this reason and recovered over $200k for an elderly consumer that was ripped off.
• Goldline Plays off Public Fears of Government Takeover and Has Formed an Unholy Alliance with Conservative Pundits to Drive a False Narrative
Goldline employs several conservative pundits to act as shills for its’ precious metal business, including Glenn Beck, Mike Huckabee, Laura Ingraham, and Fred Thompson. By drumming up public fears during financially uncertain times, conservative pundits are able to drive a false narrative. Glenn Beck for example has dedicated entire segments of his program to explaining why the U.S. money supply is destined for hyperinflation with Barack Obama as president. He will often promote the purchase of gold as the only safe investment alternative for consumers who want to safeguard their livelihoods. When the show cuts to commercial break, viewers are treated to an advertisement from Goldline.
“Goldline rips off consumers, uses misleading and possibly illegal sales tactics, and deliberately manipulates public fears of an impending government takeover – this is a trifecta of terrible business practices,” Weiner said. “It’s disgraceful that this company would capitalize on financially unstable times to prey upon people’s nest eggs.”
Rep. Weiner, who sits on the House Subcommittee on Commerce, Trade and Consumer Protection, wrote letters to the SEC and FTC requesting that they investigate Goldline and is proposing legislation that would force Goldline and companies like it to fully disclose their dishonest business practices. Under Rep. Weiner’s plan, Goldline would be required to show consumers its full business model including its astronomical markups and deceitful promises of profitability. No date has been announced but it is expected that the hearings will be held later this summer.

 

nice! So evidently it may be illegal after all.

 

You a criminal justice major too? or just going straight to the academy eventually?

 

Yep, that's lower than gutter slime! Luckily those types are few and far between!

 

why are you sticking up for a ripoff artist?