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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGoldline Hit With Injunction, Agrees To Repay Defrauded Customers $4.5 Million
Conservative talker-endorsed precious metal retailer Goldline International agreed to a court order this week to repay defrauded customers $4.5 million and overhaul its business practices. The injunction, handed down by the Los Angeles County Superior Court, was obtained by the City Attorney of Santa Monica, California where the company is based who had filed 19 criminal counts of fraud and theft against the company last year. Those charges have now been dismissed.
Goldlines entire business model was essentially a scam, the city attorney found. It was a bait-and-switch: Consumers wanted to buy gold bullion, but salespeople preyed on their fears including falsely claiming that the government could seize bullion and misled them into buying vastly overpriced gold coins instead. Consumers typically paid more than 55 percent above the actual value of the coins, which are much harder to sell down the road, instantly wiping out a large portion of their savings.
At the time, Goldline called the charges preposterous and vowed to fight them. But in addition to the $4.5 million, the court order requires Goldline to put $800,000 into a fund for future claims, and submit to a court-appointed monitor who will have full access to companys operations, at Goldlines expense. In addition, it will have to disclose its actual markups and stop misleading customers.
The company is best known for its ties to conservative talk radio hosts like Glenn Beck, Sean Hannity, and Mark Levin, who were central to the companys marketing model. Two former GOP presidential candidates Mike Huckabee and Fred Thompson have even endorsed the gold retailer.
http://thinkprogress.org/justice/2012/02/24/431519/goldline-injunction/
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Goldline Hit With Injunction, Agrees To Repay Defrauded Customers $4.5 Million (Original Post)
SunsetDreams
Feb 2012
OP
tridim
(45,358 posts)1. "In addition, it will have to disclose its actual markups and stop misleading customers"
Game over for Goldline.
Misleading customers IS their business.
asjr
(10,479 posts)2. Now that is rich!
ProSense
(116,464 posts)3. For a
group always making false claims about "government-run ponzi schemes," these assholes conservatives should be held accountable for misleading the public.