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Glenn Beck Favorite "Goldline" found guilty of fraud in court. Are you suprised?

Assassin~ Badass Buzz Guru 2012/02/23 18:22:54
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SANTA MONICA (CN) - A Los Angeles county judge signed an injunction
Wednesday that orders one of America's largest precious metal dealers,
Goldline International, to pay up to $4.5 million in customer refunds.
The
Santa Monica city attorney had just sued Goldline in Superior Court,
claiming that it dupes people into buying overvalued gold coins under
the pretext that Uncle Sam could seize gold bullion at any time.
Santa Monica City Attorney Marsha Jones Moutrie filed The People of State of California v. Goldline International in Superior Court.
California
claims that Santa Monica-based Goldline, "one of the country's largest
precious metal dealers," targets elderly victims by using "false and
misleading sales techniques" to persuade them to buy marked-up gold
coins.
The state filed a 19-count criminal complaint against Goldline in November 2011, with substantially the same allegations.
The
new civil complaint states: "Since in or about February 2008, Goldline
has falsely stated and implied to consumers that gold bullion can be,
and is likely to be, recalled by the U.S. government; while also falsely
promising that the marked-up coins are immune from such recall.
Goldline also has referred to the 'confiscation' of gold by the U.S.
government in the 1930s, falsely implying to consumers that gold was
taken without compensation at the time.
"Since in or about
February 2008, Goldline has falsely stated and implied to consumers that
the marked-up coins are 'private,' or not 'reportable' to the
government, while all bullion is reportable and public. This is false
and misleading in two ways: (1) In fact, there are no tax advantages to
the marked-up coins over bullion as a class since the profits of the
former must be declared for tax purposes the same as those from bullion;
and (2) There is no 'privacy' advantage to the marked-up coins as a
class since only certain limited quantities and types of bullion even
require reporting of any information upon liquidation.
"Since in
or about February 2008, Goldline has trained its salespeople to use,
and they have used, false and misleading statements and omissions to
intentionally conceal Goldline's more than 50 percent price markup over
its buyback price for the marked-up coins.
"Since in or about
February 2008, Goldline has offered gold bullion for sale, and collected
payments from consumers while promising them gold bullion products,
without intending to give them the promised bullion products. Once this
money was received, Goldline has persuaded the consumers to instead
purchase the marked-up coins using false and misleading tactics
including those described above."
Unlike gold bullion, pricing
of gold coins can be problematic because they come in various weights
and sizes, according to the complaint. That frees Goldline to inflate
the value of the coins without detection, the state claims.
On
Thursday, Judge Lisa Hart of the Los Angeles County Superior Court
signed an injunction and a refund of up to $4.5 million to former
Goldline customers. The order also requires Goldline to pay $800,000
into a future claims fund. All criminal charges against Goldline and its
employees were dismissed.
Under the injunction, Goldline will
have to disclose actual price markups to customers and must refrain from
making claims that the government can confiscate gold bullion. The
court has also appointed a monitor to ensure Goldline adheres to the
court order.
"This injunction requires Goldline to overhaul its
business model," Adam Radinsky, deputy city attorney and head of the
Consumer Protection Unit at Santa Monica City Attorney's Office, said in
a statement. "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."
Goldline said in a statement that Santa Monica
investigators had identified 43 customers who were unhappy with their
purchases.
"This represented less than one tenth of one percent
(or 0.001) of Goldline's customers for the relevant three year period.
To address those rare instances where a client was dissatisfied with a
purchase, the company agreed to allow these customers to return their
precious metals for a refund if they so desire," Goldline said in the
statement.
The criminal complaint created a stir when it was
filed. ABC News reported that Goldline had "used endorsements from Glenn
Beck and other conservative icons to sell hundreds of millions of
dollars in gold products to consumers."
Beck has pitched for
Goldline on his radio show, which has been a sponsor of the show. Beck
echoed the company's claims by citing in Goldline promos that under
FDR's 1933 executive order the federal government would take all gold,
except antique coins.
Beck is not named as a defendant in the lawsuit and has not been accused of any wrongdoing.
Other
prominent conservative radio hosts, including Sean Hannity, Lars
Larson, Mark Levin and Monica Crowley also promote Goldline on the
company website, goldline.com.
Beck did not immediately respond to an emailed request for comment

Read More: http://www.courthousenews.com/2012/02/22/44070.htm

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Top Opinion

  • RogerCoppock 2012/02/24 00:47:48
    No, I am not surprised.
    RogerCoppock
    +5
    Right wing political pundits have been pushing fraudulent investment schemes and quack medicine for over a century. Why do you think that they downplay law enforcement and consumer protection? Why should Glenn Beck be any different?

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  • Not A Fool 2012/03/07 04:34:52
    No, I am not surprised.
    Not A Fool
    +1
    What's to be surprised about? That Beck, who's job is to mislead people and stir up their fears, would support a business that misleads people and stirs up their fears?
  • RogerCoppock 2012/02/24 00:47:48
    No, I am not surprised.
    RogerCoppock
    +5
    Right wing political pundits have been pushing fraudulent investment schemes and quack medicine for over a century. Why do you think that they downplay law enforcement and consumer protection? Why should Glenn Beck be any different?
  • Charles... RogerCo... 2012/02/24 01:57:41
    CharlesG BN-0
    Tammany Hall?
  • RogerCo... Charles... 2012/02/24 02:23:15
    RogerCoppock
    You'll have to explain your comment.
  • Charles... RogerCo... 2012/02/24 16:22:02
    CharlesG BN-0
    Google it kiddo.
  • RogerCo... Charles... 2012/02/24 17:06:33
    RogerCoppock
    There is still the total non sequitur.
  • Charles... RogerCo... 2012/02/24 17:11:27
    CharlesG BN-0
    Because Tammany Hall was the worst of corruption, or because it involved Democrats?
  • RogerCo... Charles... 2012/02/24 17:16:26
    RogerCoppock
    +1
    Non sequitur is one of the hallmarks of RWNJs. Is it because of poor education or is it that you've got to follow this weeks' talking points memo?
  • Charles... RogerCo... 2012/02/24 17:20:58
    CharlesG BN-0
    Poor lil uneducated Roger... Tammany Hall. Mayor Daley's Chicago... Corruption and Democrats.
  • RogerCo... Charles... 2012/02/24 17:25:30
    RogerCoppock
    +1
    Which has exactly what logical connection to the topic of this thread?
  • Charles... RogerCo... 2012/02/24 17:32:23
    CharlesG BN-0
    What did your original claptrap have to do with reality or with historical fact?
  • RogerCo... Charles... 2012/02/24 21:54:29
    RogerCoppock
    +1
    ONE LAST TIME.

    This thread has the title,
    "Glenn Beck Favorite "Goldline" found guilty of fraud in court."
    This thread has to do with:

    A) Glenn Beck

    B) "Goldline"

    Now then,
    can you logically connect your response,

    "Tammany Hall?"

    to either A or B?
  • Charles... RogerCo... 2012/02/24 22:01:00
    CharlesG BN-0
    Uno vez mas... Your original statement, historical or factual basis? Nope. Tammany Hall
  • CharlesG BN-0 2012/02/23 19:42:14
    No, I am not surprised.
    CharlesG BN-0
    +1
    And I'm not surprised that Solyndra failed either.
  • Assassi... Charles... 2012/02/24 01:45:36
    Assassin~ Badass Buzz Guru
    +2
    SEE? I made that point below when someone attempted to say that if Obama was involved in something bad no one would hear about it. LOL
  • LarryFine 2012/02/23 18:57:59
    Yes, I am surprised.
    LarryFine
    +2
    This attack started three years ago because the left was after every sponsor that supported his program. The douche-bag lefties seeking to come up with false charges against this outfit. Buyers were free to choose buying the gold at whatever price was set in the offer. Goldline did not force any purchases. There are dozens of these outfits out there peddling gold coins. Why Goldline???
  • Farnsworth 2012/02/23 18:55:03
    Yes, I am surprised.
    Farnsworth
    +2
    What I find funny is an ad (at least in my browser) for "invest in silver" with as seen on cnbc,abc,cnn....
    My question is if that company was found to be fraudulent, would we see a question about that?

    Point is, don't matter if Beck is attached to it or not. GoldLine paid for advertising and they got it. Good for Beck, honoring his contract.
  • Assassi... Farnsworth 2012/02/23 19:19:10
    Assassin~ Badass Buzz Guru
    +2
    I would do a question on that. I mean look at all the questions on Soylendra. There would be questions. It is a big judgment.45 million dollars in claims.
  • Farnsworth Assassi... 2012/02/23 19:29:06
    Farnsworth
    +2
    yeah, I'd never fall for that kind of BS.

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