Goldline Execs Charged With Fraud-ABC News
mrearlygold
Posts: 17,858 ✭✭✭
Goldline, a company that used endorsements from Glenn Beck and other conservative icons to sell hundreds of millions of dollars worth of gold to consumers, has been charged with theft and fraud in a 19-count criminal complaint filed Tuesday by local officials in California.
The criminal complaint filed Tuesday by the Santa Monica City Attorney's consumer protection unit marks the latest in a series of allegations it has leveled against the gold dealer, which pioneered the practice of weaving its sales pitches into broadcasts by popular conservative political personalities -- including two former presidential candidates -- to sell hundreds of millions of dollars worth of gold every year.
The complaint alleges that Goldline "runs a bait and switch operation in which customers, seeking to invest in gold bullion, are switched to highly overpriced coins by using false and misleading claims," according to a statement released by the consumer affairs division of the Santa Monica City Attorney's office.
Goldline Execs Charged With Fraud
The criminal complaint filed Tuesday by the Santa Monica City Attorney's consumer protection unit marks the latest in a series of allegations it has leveled against the gold dealer, which pioneered the practice of weaving its sales pitches into broadcasts by popular conservative political personalities -- including two former presidential candidates -- to sell hundreds of millions of dollars worth of gold every year.
The complaint alleges that Goldline "runs a bait and switch operation in which customers, seeking to invest in gold bullion, are switched to highly overpriced coins by using false and misleading claims," according to a statement released by the consumer affairs division of the Santa Monica City Attorney's office.
Goldline Execs Charged With Fraud
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
0
Comments
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>didn't the Watergate burglar do promos for them? >>
Liddy (not actually one of the burglars) is a spokesman for Rosland Capital.
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Sounds like the typical upselling that retailers everywhere do. Next time you walk into a car dealer looking for an economy model, see if they don't try to put you into a more expensive car. Last time I checked that wasn't a crime.
<< <i>didn't the Watergate burglar do promos for them? >>
More Press:
City Attorney files charges against Goldline International
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
It's hard to take most of these news programs seriously anymore. I doubt we'll see a report from them on Solendra with the word "liberal" wedged in there 117,000 times, with pictures of liberal politicians "who haven't been charged with any crimes". What a joke.
I knew it would happen.
used car dealers
new car dealers
auto mechanics
jewelers
pawn shops
home improvement contractors
stock brokers
$Cash4Gold schemes
life insurance sellers
credit card arms of the TBTF banks
auto financing and insurers
luxury/ high end of the retail markets
health care insurers
The list is essentially endless. It's not a crime for most jewelers to offer to buy your scrap gold jewelry at 20% of spot, but somehow this
GL thing is a "big" deal. And never mind the 3X to 5X "retail" markup that jewelers like to use. Incarcerated drug pushers will have to move over to
make room for all the new arrivals.
When the US govt defined "rare and unusual gold coins" a few decades back in reference to the 1933-34 gold confiscation act, the exceptions
included numerous coins we'd call extremely common today (any pre-1933 US gold, many common foreign gold coins minted before 1960, etc.).
So believe it or not, they meet the US govt's own definition of "rare." I linked a detail article on this topic a month or two ago. In the 1950's and
1960's this interpretation enabled collectors like Pittman, Bareford, etc. to put away pre-1933 US gold coins that carried fairly modest premiums to spot (ie 10-30%)
roadrunner
<< <i>Besides numerous coin dealers that we all know, start lining up the following professions to do a perp walk with Goldline:
used car dealers
new car dealers
auto mechanics
jewelers
pawn shops
home improvement contractors
stock brokers
$Cash4Gold schemes
life insurance sellers
The list is essentially endless. It's not a crime for most jewelers to offer to buy your scrap gold jewelry at 20% of spot, but somehow this
GL thing is a "big" deal. And never mind the 3X to 5X "retail" markup that jewelers like to use. The drug pushers will have to move over to
make room for all the new arrivals.
When the US govt defined "rare and unusual gold coins" a few decades back in reference to the 1933-34 gold confiscation act, the exceptions
included numerous coins we'd call extremely common today (any pre-1933 US gold, many common foreign gold coins minted before 1960, etc.).
So believe it or not, they meet the US govt's own definition of "rare." I linked a detail article on this topic a month or two ago. In the 1950's and
1960's this interpretation enabled collectors like Pittman, Bareford, etc. to put away pre-1933 US gold coins that carried fairly modest premiums to spot (ie 10-30%)
roadrunner >>
As with anything, a few bad apples ruins the whole bunch. My dad is and auto mechanic and grandfather was an auto mechanic and used car dealer who helped everyone they could, sometimes for nothing. Neither are wealthy by any means other than the fact they have dirty hands, a clean conscience, and go home everyday doing the best they could for their friends and customers.
Too many positive BST transactions with too many members to list.
<< <i> but somehow this GL thing is a "big" deal. >>
It is nothing more than another effort to take down GB, just look where the suit is comming from Santa Monica CA another liberal bastion that just can't stand
the GB's in the world. Not saying that we wouldn't all like to pay the smallest premiums when purchasing PM's and thats why GB always says "its not right for everyone,
discuss it, pray on it before you make a decision". How many car dealers tell you that as they are trying to drag you into their sales managers office to sign the sales contract
along with their in house financing @ 24.99%.
And I betcha it's a very similar pitch without naming names.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>
<< <i> but somehow this GL thing is a "big" deal. >>
It is nothing more than another effort to take down GB, just look where the suit is comming from Santa Monica CA another liberal bastion that just can't stand
the GB's in the world. >>
You hit the nail on the head there.
This is from my personal experiences over the years. I've probably had a dozen auto mechanics work of my cars over the past 35 yrs. In that time I've only found one that I would consider totally above board and 100% ethical. And he's not cheap. So in my experiences bad apples are the norm. For used car dealers, I've only had 3 good experiences out of 10 actual purchases. But in dealing with the private sector I've had 5 out of 6 satisfactory transactions where the cars were as described and gave decent trouble-free lives. Problem is you really don't get to know your car's true condition until you've driven it for at least a few weeks if not months. I've yet to have any used car purchased from a dealer last a long time and be fairly trouble-free. But I'm working on one now - 2yrs. But a long ways to go before making that call.
rodarunner
The Kenmore hucksters would advertise a washer/dryer pair for $299 in order to get you in the store. Once momma got in front of the units, she realized it was about as convenient as a wringer washer and clothes line. The salesman could see from the look in her eyes that she was closable and would 'guide' her over to the $499 pair..."OH Mrs. Jones, this pair is so much nicer and you deserve to have such luxury in your fine home"....and meets no resistance.....it's..... Game over.
Once a gold/'coin' salesman drops the word 'INVESTMENT' into the conversation and meets no resistance from the newbie.....it's ......Game over. The hook is set.
Now if Goldline really is scamming people... toss a couple of Executives in jail.
In God We Trust.... all others pay in Gold and Silver!
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>ABC/CBS/NBC are no longer news outlets, they are unmitigated political proponents of the left and the democrats in general. It is a shame to see what was once an honorable - and vital - part of American freedom reduced to such levels of pandering and spin doctoring. Cheers, RickO >>
So true, and it's gonna get much worse up until November 2012...much worse and beyond with the propaganda.
<< <i>
<< <i>ABC/CBS/NBC are no longer news outlets, they are unmitigated political proponents of the left and the democrats in general. It is a shame to see what was once an honorable - and vital - part of American freedom reduced to such levels of pandering and spin doctoring. Cheers, RickO >>
So true, and it's gonna get much worse up until November 2012...much worse and beyond with the propaganda. >>
I wouldn't worry about it. It's not like anyone watches them anymore.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>Has anyone on this forum bought form Goldline in the past five years? MJ >>
"Bought"? No of course not. But when all the noise about this place was happening a year or 2 ago I called those slobs and was quoted double greysheet for a commonly traded foreign bullion coin .
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>
<< <i>Has anyone on this forum bought form Goldline in the past five years? MJ >>
"Bought"? No of course not. But when all the noise about this place was happening a year or 2 ago I called those slobs and was quoted double greysheet for a commonly traded foreign bullion coin . >>
Exactly. They would be the last place I would buy from. My point is I don't think any informed person would buy from them. What does that leave? The other 99.9% . They had a big pool to swim in. Their TV commercials always made my flesh crawl. GB, the same. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Blaming the news source for reporting it is just as bad as blaming a news source for not reporting on it.
This is designed to draw attention to Goldline and similar practices. I doubt it will be found to have merit, as Roadrunner pointed out, they have lots of company.
The real effect, short-term is the market in certified gold has effectively collapsed.
<< <i>Goldline Lawsuit Complaint
Blaming the news source for reporting it is just as bad as blaming a news source for not reporting on it.
>>
Not for reporting it, but the biased way in which they report it.
<< <i>
<< <i>Goldline Lawsuit Complaint
Blaming the news source for reporting it is just as bad as blaming a news source for not reporting on it.
>>
Not for reporting it, but the biased way in which they report it. >>
This is pretty much why I do not listen/watch/read anything from the big boys in "news" anymore. I'm quite tired of being spoon-fed...last I remember, I was taught to think for myself. About all ABC/CBS/NBC/CNN and I have to say Fox news gets of my time is when there are disasters or other huge events going on and I flip through the news channels looking for live feeds of the event. As soon as a talking head comes on...<click> to another channel with more live coverage.
It's a real shame I no longer have a trustworthy source for news...but, on the other hand, at least I'm aware I have to dig for the truth (unlike many other deceived watchers).
Edited to add: Except this forum, of course!!
I'd be interested in hearing the facts of the case.
PS: G. Gordon Liddy apparently lives around here, as I've been passed on the highway a couple of times by his red corvette with "H2OGATE" license plates.
Never take advice from the seller.
Otherwise, based on the complaint, these guys made agreements they didn't keep, if they were in writing then it is fraud. As far as the rest of it , well I agree we need to line up all the others who made bogus claims while selling a product and that list is way too long.
What is new about the "news", its the same old lies and spin, from all sides.
Edward Morrow, where are you when we need you.
There are many in the political and financial realm that are trying their best to discourage the public from purchasing gold. Purchasing gold allows the public to 'circumvent' some control that the powers that be want to maintain over the populace via monetary policy.
This lawsuit is an opening volley in that battle; they hope it will intimidate the public away from gold purchases. If by chance the lawsuit prevails, look for more lawsuits going after many other companies. In worst case, there could be many closed up, or perhaps some regulations may be pushed in that will make it more difficult for Joe Sixpack to purchase gold (for our own protection, of course).
<< <i>Walk into any TBTF bank and they'll say "the interest is so low today" which is true, then they'll try to steer you to their other more risky "investment products" that they make more money on. I've never seen that considered fraud. >>
Depending on your investment objectives it may not be fraud. There are times where a safe, currently extremely low yielding govt/municipal bond portfolio may not be the best choice for you as an investor. They are in effect acting as fiduciaries for your money and part of that fiduciary duty is to try to steer you towards the product choice that makes sense for your situation. So in fact, they may be acting in a 100% ethical way in regards to your investments. And understand that the boundaries and guidelines that are what is considered part of fiduciary duty is set up, monitored and administered by either the state administrator or the SEC.
Two disclaimers. 1.) This isn't true all the time. There are lots of unscrupulous people out there waiting to do exactly what you mentioned.
2.) I don't know your particular investment objective, so above when I say you, I mean it in the general sense, not personal.
<< <i>It's a real shame I no longer have a trustworthy source for news...but, on the other hand, at least I'm aware I have to dig for the truth (unlike many other deceived watchers).
Edited to add: Except this forum, of course!!
Try GBTV you might like it
There have been many recent efforts to separate private individuals from their gold with the $4gold being the latest incarnation and fear of losing your money being the tried and true approach. The Goldline commercials were very smoothly done with familiar names, talking suits and piles of gold on the table in front of the tv camera and an oversized phone number to call right now to get a special offer...all in superprime time to reach the most mullets at one time, repeated every 10 minutes. Anyone that would bite on that type of come-on is due a Darwin award and putting the fraud up for public consumption in the aftermath is equivilent to spreading fear of gold ownership. Very few people own any gold in the US right now and certainly even fewer own have enough to do any good. That is not the case in China.
The modern stacker has his routes and places to get the goodies and most are willing to teach anyone that wants to learn. Those that just want to play are using paper for the ezpz in and out and they too are willing to teach anyone that wants to learn. In spite of all of the opportunity to learn about how to protect your financial well being through owning real, liquid, tangible assets, the mullets are crying abouta $5 atm fee...Goldline had the come-on right, the pitch was solid and truthful and the close was sterling but the deal was still garbage.
<< <i>There have been many recent efforts to separate private individuals from their gold with the $4gold being the latest incarnation and fear of losing your money being the tried and true approach. The Goldline commercials were very smoothly done with familiar names, talking suits and piles of gold on the table in front of the tv camera and an oversized phone number to call right now to get a special offer...all in superprime time to reach the most mullets at one time, repeated every 10 minutes. Anyone that would bite on that type of come-on is due a Darwin award and putting the fraud up for public consumption in the aftermath is equivilent to spreading fear of gold ownership. Very few people own any gold in the US right now and certainly even fewer own have enough to do any good. That is not the case in China. >>
"That is not the case in China."
Comrade mhammerman, please, help me out. What are you comparing; class, percentage of population, or shear numbers? TIA.