[Matajic]

By MATTHEW MOSK and BRIAN ROSS (@brianross)
Nov. 1, 2011



Goldline, a company that used endorsements from Glenn Beck and other conservative icons to sell hundreds of millions of dollars 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.
The company has been charged in the court filing with misdemeanors that include theft by false pretenses, false advertising, and conspiracy, the City Attorney's office said. In addition to the charges against the company, the complaint accuses former CEO Mark Albarian, executives Robert Fazio and Luis Beeli, and salespeople Charles Boratgis and Stephanie Howard of defrauding customers. Current CEO Scott Carter is accused of making false or misleading statements. Each of the charged offenses carries a maximum penalty of one year in jail and maximum fines of between $1,000 and $10,000 per offense.

Carter, who is frequently featured in Goldline commercials, told ABC News Tuesday that he was withholding comment until he has had time to review the court filing.

The launch of an investigation into Goldline was first reported by ABC News more than a year ago, when Santa Monica officials first said they were looking into allegations they said were leveled against the company by unhappy customers.

"There are two main types of complaints we're seeing," Adam Radinsky of the Santa Monica City Attorney's office said at the time. "One is that customers say that they were lied to and misled in entering into their purchases of gold coins. And the other group is saying that they received something different from what they had ordered."

Goldline officials said at the time that customer complaints were infrequent and it responded immediately to address them. The proof of the company's commitment to customer satisfaction, they said, is Goldline's top rating from the Better Business Bureau. "When we learn that customers have not received the experience they deserve, we investigate and take action," said Carter, then Goldline's executive vice president, in a letter to ABC News sent last year.


The criminal complaint lays out a series of allegations that it contends add up to a conspiracy to trick customers into overpaying for an investment in gold.
For instance, the complaint alleges that the company trains salespeople to "get the money in" from customers on the promise of delivering gold bullion, with the intent to later switch the sale to far more overpriced collectable gold coins. It alleges that the company trains its employees "to disguise the more than 50 percent markup on the overpriced coins," and alleges that Goldline reprimands its salespeople if they fail to convince the customer to buy the overpriced coins.

Continued at link
http://abcnews.go.com/Blotter/goldli...ry?id=14857253

[Goooooblin]

Throw the book at them , they can start with ours!

[Zaebal]

Seriously, I'm so glad I have this forum or I may have been foolish enough to buy from Goldline.

[mGUuZRyA]

How you think they where able to pay glen beck to hawk that fools gold?

[Agrisalia]

Goldline is just like any other sales based company, of course they're going to try and upsell you! That's why you have to know what you're buying before you buy it. My wife used to work in sales and it was part of her job to try and upsell the customers, but they never got charged with fraud, conspiracy and false advertising.

It's only because gold costs so much right now that when some ignorant fool shells out $10k for some gold coins and thinks they're going to get a suitcase full of coins and they receive a box with 4 or 5 coins in it they cry foul and ask the state for reprisal.

[lizadax]

A friend of mine got suckered into something like that. In told him about gold, and he listened,, then went off on his on and ended up buying "slabbed eagles". They were 1/10th ounce GAEs, 1/10th ozt, and he paid about $350 each for them (maybe 2009, but really does not matter). He bought maybe 10 of them. At the time he could have had 3-4 ozt. of bullion. I am not sure it was goldline or not. Supposedly they are "rare dates", but still.

[onelovemp]

Goldline deserves it. they're selling .1867 20 franc gold frac's for $550 when other companies sell them for $350.

[Agrisalia]

Goldline deserves it. they're selling .1867 20 franc gold frac's for $550 when other companies sell them for $350.

Why do they "deserve it"? Goldline didn't force anyone to buy anything; the phrase "do your own due diligence" applies here. Using the same logic, APMEX should be sued because they are currently charging more for a random date GAE than Provident Metals is. If I buy from APMEX, and then find out I could have gotten them cheaper, should I sue them for selling overpriced coins, conspiracy and fraud?

[SigNeewfoew]

The purpose of business is to make a profit that said it never hurts to leave customers feeling like they got a good deal.