Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

SunsetDreams

(8,571 posts)
Fri Feb 24, 2012, 05:07 PM Feb 2012

Goldline 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.

Goldline’s 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 company’s operations, at Goldline’s 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 company’s 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/
3 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Goldline Hit With Injunction, Agrees To Repay Defrauded Customers $4.5 Million (Original Post) SunsetDreams Feb 2012 OP
"In addition, it will have to disclose its actual markups and stop misleading customers" tridim Feb 2012 #1
Now that is rich! asjr Feb 2012 #2
For a ProSense Feb 2012 #3

tridim

(45,358 posts)
1. "In addition, it will have to disclose its actual markups and stop misleading customers"
Fri Feb 24, 2012, 05:10 PM
Feb 2012

Game over for Goldline.

Misleading customers IS their business.

ProSense

(116,464 posts)
3. For a
Fri Feb 24, 2012, 05:14 PM
Feb 2012

group always making false claims about "government-run ponzi schemes," these assholes conservatives should be held accountable for misleading the public.

Latest Discussions»General Discussion»Goldline Hit With Injunct...