Ohio suing coin dealer amid crackdown - anyone heard of Alliance Coin and owner Barry Rothman?
Goldbully
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Wednesday, July 1, 2009, 12:36pm EDT
State suing coin dealer amid crackdown
Business First of Columbus - by Matt Burns
Ohio Attorney General Richard Cordray is suing a Long Island, N.Y., state coin dealer as part of a multistate crackdown on alleged consumer fraud.
Cordray said Wednesday that his office has filed suit in Hanc(o)ck County Common Pleas Court against Amityville-based Alliance Coin Inc. and its president, Barry Rothman. The state alleges Alliance violated Ohio consumer protection law, and it wants to levy financial penalties and hold the company responsible for reimbursing consumers.
Cordray’s office said the dealer of rare coins allegedly has used high-pressure sales tactics over the phone and is targeting senior citizens in its business pitches. Cordray claims the company has misrepresented the value and investment grade of the coins in its business dealings and operated without registering in the state as a telephone solicitor.
Reached by phone Wednesday, Rothman declined to comment on the lawsuit.
Kim Kowalski, a spokeswoman for Cordray’s office, said the state’s investigation began after it received a complaint from an 82-year-old Hanc(o)ck County resident who allegedly spent more than $25,000 on Alliance coins to later discover they were worth much less. Alliance claims to offer a 15-day refund window, but that might not be enough time for consumers to discover any gaps in value, the Attorney General’s Office said.
The Hanc(o)ck County complaint is the only one filed with the state, but Kowalski said the office is aware of other allegations made by Ohio consumers.
The lawsuit is part of a national sweep dubbed Operation Short Change that targets companies accused of exploiting consumers amid the recession. Ohio is one of 14 states that have filed suits, while the Federal Trade Commission has mounted 15 cases and the Department of Justice is pursuing 42.
Linky
Lawsuit filed on behalf of scammed Hanc(o)ck County woman.
Ohio Attorney General Richard Cordray has filed a lawsuit against a New York coin dealer, on behalf of a Hanc(o)ck County woman who was scammed out of thousands of dollars.
The suit names Alliance Coin and owner Barry Rothman, and is part of a 14-state effort to go after firms exploiting the economic downturn to defraud consumers.
The suit claims the woman, who is not named in the court paperwork, was pressured into buying coins at inflated prices, losing around 328-thousand dollars.
Cordray is seeking restitution and a 25-thousand dollar civil penalty for each violation.
The paperwork was filed in Hanc(o)ck County Common Pleas Court Tuesday.
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<< <i>Hanc(o)ck County resident who allegedly spent more than $25,000 on Alliance coins >>
<< <i>the woman, who is not named in the court paperwork, was pressured into buying coins at inflated prices, losing around 328-thousand dollars. >>
Wow - these must have REALLY dropped in value....but I'm guessing someone got some numbers mixed up.
Still, this is interesting....should law suits like this be restricted to 'boiler room' outfits, like I'm supposing this is?
I love it!
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
<< <i>Kim Kowalski, a spokeswoman for Cordray’s office, said the state’s investigation began after it received a complaint from an 82-year-old Hanc(o)ck County resident who allegedly spent more than $25,000 on Alliance coins to later discover they were worth much less. Alliance claims to offer a 15-day refund window, but that might not be enough time for consumers to discover any gaps in value, the Attorney General’s Office said. >>
Sad to see an 82 year old get gyped but it seems like the same thing happens with many things when people spend a lot of money on something they don't understand.
roadrunner