Goldline Consumer Fraud and Lawsuit
If you have you been a recent victim of the Goldline catastrophe, you need to seek legal help as soon as possible to see if you can recover your losses though a Gold Line Lawsuit . RepresentYou is a State Bar of California certified lawyer referral service who can help to find you competent, experienced Goldline lawsuit lawyers. Goldline is a company that buys and sells precious metals such as gold and silver coins and bars for investors and sellers. Goldline has more than 350 employees and made an estimated $737 million in revenue during the year of 2010. Recently, Goldline settled their criminal charges with the Santa Monica City Attorney, which does not mean you are out of luck if you were a victim of the deceptive acts committed by the company. In exchange for having the criminal charges dismissed, Goldline agreed to first stop selling gold by deceptive means as they have done in the past. Goldline had to also agree to pay up to $4.5 million to customers who submitted claims to the Santa Monica City Attorney. If you or anyone you know bought gold on November 1, 2008 or after, you may have a claim against Goldline. Another obligation for Goldline was that they must also deposit $800,000 to pay refunds to these customers. However, you do need to act quickly if you satisfy the above criterion. In order to make a claim against the company, you need to submit a claim before May 22, 2013. Do not attempt to go it alone, if you have been a victim of these wrongful acts, contact RepresentYou.com now to get connected with a lawyer that may be able to help you regain losses.
Goldline International Placed Under Injunction, Ordered To Change Sales Practices
February 22, 2012
FOR IMMEDIATE RELEASE
Contact: Adam Radinsky, Head, Consumer Protection Unit
National Coin Dealer Must Also Refund Up To $4.5 Million To Customers, Set Up Fund For Additional Claims
The Santa Monica City Attorney’s Office has obtained a judgment and injunction against Goldline International, Inc., one of the nation’s largest gold coin dealers. The injunction, believed to be the strongest ever levied against a precious metals dealer, requires Goldline to change its unfair sales practices and provide accurate price information to consumers. It also requires Goldline to refund up to $4.5 million to former customers and to pay $800,000.00 into a fund for future claims. The court has appointed a Monitor to ensure Goldline’s compliance.
The judgment was signed today by Judge Lisa Hart Cole of the Los Angeles County Superior Court. The injunction is part of an agreement between prosecutors and the gold dealer in a consumer protection lawsuit filed by the City Attorney’s Consumer Protection Unit. The City Attorney’s Office had previously filed criminal charges against Goldline which have now been dismissed.
Goldline has been under investigation by local authorities in California since 2010. In particular:
- Consumers from around the nation said they wanted to buy gold bullion as a safe haven for their savings or retirement accounts. But Goldline’s salespeople scared them into buying the overpriced coins instead, saying the coins were a safer and better investment than bullion. Only later did the customers discover that the opposite was true: they instantly lost a large portion of their savings due to the high markup on the coins.
- Consumers were falsely told that the government could confiscate and seize gold bullion, but that this could not happen to the overpriced coins.
- Consumers typically paid more than 55% over the actual value of the overpriced coins, but Goldline’s salespeople concealed this markup even when consumers asked about it.
- Former employees came forward and said the company trained them how to switch consumers from bullion to the overpriced coins through misleading fear tactics.
- Most consumers found Goldline through its TV ads. They trusted the company based on its well-known celebrity endorsers. Only later did they discover they had been misled into paying far over market value for coins that were worth little more than gold bullion to begin with.
The injunction requires Goldline to:
1. Disclose its actual price markups, in recorded calls before each transaction.
2. Not tell consumers that the government can confiscate gold bullion.
3. Follow a strict, factual script when discussing topics that were used in the past to mislead consumers.
4. Not attempt to sell customers higher-priced coins once they have already paid for bullion.
5. Give customers prompt refunds without hassle.
6. Set up a new phone line, manned by non-commissioned employees, for refunds, liquidations, and other customer service.
The injunction will last for five years. It can be terminated after three years if Goldline maintains a clean record for the last six months.
“This injunction requires Goldline to overhaul its business model,” said Deputy City Attorney Adam Radinsky who heads Santa Monica’s Consumer Protection Unit. “Consumers will now know the company’s true price markups, and they won’t be scared or tricked into buying something they don’t want. False and misleading fear-mongering, bait and switch tactics, and vast hidden markups cannot be tolerated. All consumers deserve to be treated fairly.”
The judgment also requires Goldline to offer refunds to customers who complained to authorities, in the total amount of up to $4.5 million. Customers getting refunds will return the coins they had bought.
Goldline must pay an additional $800,000.00 into a fund for future restitution claims. Consumers who purchased coins after November 1, 2008 and were defrauded in similar ways are eligible to receive restitution. Any funds remaining after restitution has been paid will go to the statewide Consumer Protection Prosecution Trust Fund.
The court order appoints Anthony Pacheco of the law firm Proskauer Rose in Los Angeles, as Monitor of the injunction. Pacheco will have full access to all company records. He will attend staff meetings, perform undercover test buys, and review actual sales calls, to assure that the company adheres to the court order.
Pacheco, a former federal prosecutor, also served as President of the Los Angeles Board of Police Commissioners, overseeing the federal consent decree of the L.A. Police Department for two years.
Goldline will pay the cost of the Monitor.
“This is a new day. Consumers in California and elsewhere, many of whom invested thousands of dollars and their life savings in the belief that the gold they were buying was a valuable and safe investment, will now get substantial relief. No one should have to suffer from predatory and deceitful sales practices,” said Radinsky. “Whether they are buying gold or anything else, consumers expect a fair deal. We insisted that Goldline give them just that.”
“We hope this case is a wake-up call to other large coin dealers and to other businesses,” said Radinsky. “They need to know that it’s against the law to mislead consumers with false fears and misinformation. And consumers need to be especially careful when investing in this uniquely unregulated industry.”
The allegations against Goldline began after multiple customer complaints regarding the deceptive acts committed by the company. ABC news reported that nearly 100 customers around the country had complained that the firm was very misleading and that they had received items that differed from what they ordered. Part of the settlement states that there is a limit to the amount of restitution one can be paid. The contract basically states that the amount of restitution for these claims shall be the difference between the original purchase price and Goldline’s current bid price for the same good. There is also a cap of $20,000 per claim unless it is determined that the equity is worth more per that individual situation.
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