Minnesota News: "State says rare-coin dealer bilked seniors"
Goldbully
Posts: 17,990 ✭✭✭✭✭
I've dealt with Dick Quitmeyer on a couple of occasions.
Seems like a reputable dealer!!! I love the coins he sold me.
Looks like he got mixed up with the wrong crowd.....sad.
State says rare-coin dealer bilked seniors
A suit by the attorney general alleges Tory Hughes, a convicted felon, misled and cheated clients.
By DAN BROWNING, Star Tribune
Last update: February 14, 2011 - 10:59 PM
Tory Hughes called his Edina coin and bullion business Reputable Rare Coins. Minnesota Attorney General Lori Swanson alleges that it's anything but.
Swanson filed a lawsuit Monday in Hennepin County District Court alleging the firm and one of its founders systematically defrauded clients, many of whom are senior citizens.
The suit alleges the coin dealership and Hughes, 41, of White Bear Lake, misrepresented the value of coins sold and failed to deliver coins customers bought. It alleges the firm overstated the prices it would pay for coins and then, after receiving them, offered less money or unilaterally substituted lower-value coins in exchange.
Swanson seeks a court order to enjoin Hughes, Reputable Rare Coins and the people associated with it from misrepresenting the value of the rare metals they sell. She also seeks unspecified financial penalties.
"This is a case where you have a coin company that took money and property from senior citizens and failed to deliver the product," said Ben Wogsland, a spokesman for the attorney general's office. "Seniors placed their trust in this company and thought it would be a good investment, and, obviously, that did not turn out to be the case,"
The lawsuit identifies four clients by their initials. They range in age from 71 to 91, and as a group their losses exceed $84,300.
James Bottorf, 88, of Punta Gorda, Fla., was among them. He said in an interview that Hughes swindled him out of about $25,000 in gold bullion coins that he had purchased in the 1980s from another Twin Cities coin dealer.
"He took me," Bottorf said. He said Hughes called him last July and knew he had purchased the bullion when he lived in La Crosse, Wis., where he'd worked as an engineer for Trane Co. Hughes urged him to swap his bullion for collectable coins, saying the bullion might be subject to confiscation by the government in hard times, Bottorf said.
That's a ploy often used by unscrupulous coin dealers to frighten people into buying collectible coins, which have a higher markup than bullion, according to a consumer alert issued last year by the Federal Trade Commission.
Bottorf said Hughes sent him a FedEx package to mail in his coins for an appraisal. Hughes promised to send him an equivalent value in collectible $5 Liberty coins, Bottorf said, but that never happened. "He stalled and stalled from October until now," Bottorf said.
He said he reported the matter to federal and state authorities, but only Swanson's office took action.
F.B. Lacy, an 85-year-old Texas oilman, alleged in a federal lawsuit filed last month in Houston that Reputable Rare Coins and Hughes sacked him in September for $204,565. The suit says he delivered some coins to Dick Quitmeyer, who was acting as Reputable Rare's numismatist, to be appraised. But Quitmeyer sold the coins for nearly $300,000 and gave $204,565 to Hughes, who never paid Lacy.
Quitmeyer owns Yellow River Rare Coins in Hopkins. He said Monday that he did business with Hughes for about a year. He said they had done a deal with Lacy last spring for more than $600,000 "without a hitch," so he agreed to go to Texas to pick up some more coins because Hughes was worried Lacy was "getting to the age" where he might not deliver them.
Quitmeyer said he sold the coins at Hughes' direction but decided to hold on to about $90,000 because Hughes had inexplicably dropped out of sight.
Quitmeyer said when he learned of the problem with Lacy's coins, he turned over the money he was holding for Hughes in exchange for a partial release from Lacy's claims. "Mr. Lacy is just a wonderful gentleman," Quitmeyer said. "I think it's absolutely terrible."
Hughes has a criminal record that includes convictions for burglary, forgery, cocaine possession and receipt of stolen property. He could not be reached for comment Monday.
Court records show his most recent arrest was Feb. 7 in Mille Lacs County after a sheriff's deputy clocked him going 91 miles per hour on Hwy. 169. A search of the vehicle found a crack pipe with cocaine residue, the records say, and he was charged with drug possession, driving under the influence and related crimes.
The precious metals industry is unregulated, so nothing bars a convicted felon from trading in gold, silver, platinum and the like.
Hughes founded Reputable Rare Coins in 2009 with Steve Jorgensen of Minnetonka and Brian Nako of Lakeville. Jorgensen said he had a "gut feeling" things weren't right and quit after a couple of months. Nako could not be reached for comment.
Patrick Robinson, general manager at Guardian Gold & Silver Exchange, said he left Reputable Rare Coins last April after a few weeks on the job.
"The police showed up like on my second Friday," Robinson said. "The owner, Tory Hughes, was being exceptionally shady about a deal that I was working on. I came out of American Express as a financial adviser. I said, 'This is insane. This is people's money.'"
Star Tribune Link
Seems like a reputable dealer!!! I love the coins he sold me.
Looks like he got mixed up with the wrong crowd.....sad.
State says rare-coin dealer bilked seniors
A suit by the attorney general alleges Tory Hughes, a convicted felon, misled and cheated clients.
By DAN BROWNING, Star Tribune
Last update: February 14, 2011 - 10:59 PM
Tory Hughes called his Edina coin and bullion business Reputable Rare Coins. Minnesota Attorney General Lori Swanson alleges that it's anything but.
Swanson filed a lawsuit Monday in Hennepin County District Court alleging the firm and one of its founders systematically defrauded clients, many of whom are senior citizens.
The suit alleges the coin dealership and Hughes, 41, of White Bear Lake, misrepresented the value of coins sold and failed to deliver coins customers bought. It alleges the firm overstated the prices it would pay for coins and then, after receiving them, offered less money or unilaterally substituted lower-value coins in exchange.
Swanson seeks a court order to enjoin Hughes, Reputable Rare Coins and the people associated with it from misrepresenting the value of the rare metals they sell. She also seeks unspecified financial penalties.
"This is a case where you have a coin company that took money and property from senior citizens and failed to deliver the product," said Ben Wogsland, a spokesman for the attorney general's office. "Seniors placed their trust in this company and thought it would be a good investment, and, obviously, that did not turn out to be the case,"
The lawsuit identifies four clients by their initials. They range in age from 71 to 91, and as a group their losses exceed $84,300.
James Bottorf, 88, of Punta Gorda, Fla., was among them. He said in an interview that Hughes swindled him out of about $25,000 in gold bullion coins that he had purchased in the 1980s from another Twin Cities coin dealer.
"He took me," Bottorf said. He said Hughes called him last July and knew he had purchased the bullion when he lived in La Crosse, Wis., where he'd worked as an engineer for Trane Co. Hughes urged him to swap his bullion for collectable coins, saying the bullion might be subject to confiscation by the government in hard times, Bottorf said.
That's a ploy often used by unscrupulous coin dealers to frighten people into buying collectible coins, which have a higher markup than bullion, according to a consumer alert issued last year by the Federal Trade Commission.
Bottorf said Hughes sent him a FedEx package to mail in his coins for an appraisal. Hughes promised to send him an equivalent value in collectible $5 Liberty coins, Bottorf said, but that never happened. "He stalled and stalled from October until now," Bottorf said.
He said he reported the matter to federal and state authorities, but only Swanson's office took action.
F.B. Lacy, an 85-year-old Texas oilman, alleged in a federal lawsuit filed last month in Houston that Reputable Rare Coins and Hughes sacked him in September for $204,565. The suit says he delivered some coins to Dick Quitmeyer, who was acting as Reputable Rare's numismatist, to be appraised. But Quitmeyer sold the coins for nearly $300,000 and gave $204,565 to Hughes, who never paid Lacy.
Quitmeyer owns Yellow River Rare Coins in Hopkins. He said Monday that he did business with Hughes for about a year. He said they had done a deal with Lacy last spring for more than $600,000 "without a hitch," so he agreed to go to Texas to pick up some more coins because Hughes was worried Lacy was "getting to the age" where he might not deliver them.
Quitmeyer said he sold the coins at Hughes' direction but decided to hold on to about $90,000 because Hughes had inexplicably dropped out of sight.
Quitmeyer said when he learned of the problem with Lacy's coins, he turned over the money he was holding for Hughes in exchange for a partial release from Lacy's claims. "Mr. Lacy is just a wonderful gentleman," Quitmeyer said. "I think it's absolutely terrible."
Hughes has a criminal record that includes convictions for burglary, forgery, cocaine possession and receipt of stolen property. He could not be reached for comment Monday.
Court records show his most recent arrest was Feb. 7 in Mille Lacs County after a sheriff's deputy clocked him going 91 miles per hour on Hwy. 169. A search of the vehicle found a crack pipe with cocaine residue, the records say, and he was charged with drug possession, driving under the influence and related crimes.
The precious metals industry is unregulated, so nothing bars a convicted felon from trading in gold, silver, platinum and the like.
Hughes founded Reputable Rare Coins in 2009 with Steve Jorgensen of Minnetonka and Brian Nako of Lakeville. Jorgensen said he had a "gut feeling" things weren't right and quit after a couple of months. Nako could not be reached for comment.
Patrick Robinson, general manager at Guardian Gold & Silver Exchange, said he left Reputable Rare Coins last April after a few weeks on the job.
"The police showed up like on my second Friday," Robinson said. "The owner, Tory Hughes, was being exceptionally shady about a deal that I was working on. I came out of American Express as a financial adviser. I said, 'This is insane. This is people's money.'"
Star Tribune Link
0
Comments
<< <i>I've dealt with Dick Quitmeyer on a couple of occasions.
Seems like a reputable dealer!!! I love the coins he sold me. >>
This is somewhat similar to what happened to me with Beavertown Coin in NJ back in the 1990's as the market turned down. Good dealer gone bad. They had some generic gold coins of mine on consignment that they were supposed to convert into other coins I was looking for. After getting about half way through the conversion they stopped supplying coins. In hindsight, they had sold everything I sent them but then used the proceeds to help support their slowly failing business. They ultimately declared bankruptcy and stiffed me for a tidy loss. But the positive side to the story is that they are back in business under the same name in approximately the same location as before. Only in America.
roadrunner
Edit: has a bad drug problem
In an inverse-psychology kind of way - I would be wary of anyone who choose to name themselves "Reputable". That's a red-flag right there.
I know Dick very well, and he's very fair and honest.
I firmly believe in numismatics as the world's greatest hobby, but recognize that this is a luxury and without collectors, we can all spend/melt our collections/inventories.
eBaystore
In business, all we have is our reputation. It must be protected at all times.
This could be a good example of just such a case.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
<< <i>He said in an interview that Hughes swindled him out of about $25,000 in gold bullion coins that he had purchased in the 1980s from another Twin Cities coin dealer. >>
Not to defend Hughes against the allegations, but this happens every minute of every day when someone sends or takes stuff to a CA$H-4-GOLD!!!!1111 place they see on TV or the newspaper and nary a cricket doth chirp.
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
How about "Lie, Cheat, and Steal" from the 1980's? Those 3 guys were probably some of the most honest dealers out there at the time.
I'd love to see a comeback with that name.
roadrunner
<< <i>I have bought and sold with Yellow River and never had a problem. My reading of the article is that Dick unfortunately was caught up in a deal gone bad and he tried to do the right thing by returning the portion of the funds he still had. >>
Didn't they unknownly deal some fake seated dollars in pcgs slabs?
<< <i>
<< <i>I have bought and sold with Yellow River and never had a problem. My reading of the article is that Dick unfortunately was caught up in a deal gone bad and he tried to do the right thing by returning the portion of the funds he still had. >>
Didn't they unknownly deal some fake seated dollars in pcgs slabs? >>
Not to the best of my knowledge. The dealer that PCGS brought charges against for selling fake Seated dollars in fake PCGS slabs was Burnsville Coin Co. and owner Barry Skog.
An authorized PCGS dealer, and a contributor to the Red Book.
I have always found him to be honest and trustworthy.
Sounds like he inadvertently got in with the wrong kind of people.
I believe he will do whatever he can to make things right on his end.
<< <i>I have known Dick for several years and did many deals with him as a dealer.
I have always found him to be honest and trustworthy.
Sounds like he inadvertently got in with the wrong kind of people.
I believe he will do whatever he can to make things right on his end. >>
Looks like most of us here feel the same way.....Dick is an upstanding man.
All the best to Dick until they sort this mess out!!
Lane
See http://www.doubledimes.com for a free online reference for US twenty-cent pieces
Coin dealer accused of defrauding senior citizens
by Kristine Goodrich
Staff Writer
Published:
Tuesday, February 22, 2011 4:56 PM CST
MINNEAPOLIS — A state lawsuit alleges a coin dealer from White Bear Lake bilked elderly customers out of thousands of dollars.
The Minnesota Attorney General’s Office filed a lawsuit in Hennepin County Court last week against Tory Hughes of White Bear Lake and his Edina-based business called Reputable Rare Coins. The civil suit claims Hughes lied about the value of coins, failed to deliver promised goods and engaged in other schemes. The suit charges Hughes, 41, with consumer fraud, deceptive trade practices, deceptive acts against senior citizens and unjust enrichment. It seeks financial penalties and to prohibit Hughes, his company and its associates from continuing its unlawful practices.
The unnamed victims said they received unsolicited calls from Hughes.
A Texas woman reported she paid $50,000 for 140 Swiss franc coins but never received the coins.
A Florida man, 88, said Hughes advised him to exchange his gold bullion coins for liberty gold coins. The man sent his coins, valued at approximately $25,000 and never received the liberty coins, valued at $400.
A Wyoming woman, 75, reported Hughes offered her $10,500 for her collection of gold coins. After receiving the coins the next day, Hughes allegedly said the value of gold had decreased and he would only pay $8,500. The customer demanded her gold back but Hughes refused and instead sent silver coins valued at $1,100.
A South Dakota man, 71, said he agreed at Hughes’ urging to exchange his $20 gold coins for liberty gold coins. He sent his coins and never received the replacements.
A Texas man also has filed a federal civil lawsuit against Hughes and Reputable Rare Coins. The plaintiff, listed as F.B. Lacy, reportedly gave gold coins for appraisal but an agent for the company sold the coins without permission. Lacy claims the coins were sold for nearly $296,000 but he received only $91,000. The suit seeks financial compensation for at least the $205,000 balance plus interest and legal fees.
No one from Reputable Rare Coins responded to an e-mailed request for comment.
According to state records, Hughes has two prior felony convictions: burglary in 2007 and check forgery in 2009. He was arrested in Mille Lacs County Feb. 7 after he was stopped for speeding. The arrest report states he appeared to be under the influence of drugs and had a crack pipe and other drug paraphernalia.
PR Link