The Commemorative Gold Coin Scam
Precious metal coin scams are rampant across late night television ads, fear mongering websites, and persistent telemarketing campaigns.
Have you seen them? Here’s what you should know.
Precious metal coin scams are rampant across late night television ads, fear mongering websites, and persistent telemarketing campaigns.
Have you seen them? Here’s what you should know.
Precious metal coin scams are rampant across late night television ads, fear mongering websites, and persistent telemarketing campaigns.
Have you seen them? Here’s what you should know.
In 2014, a U.S. Senate Special Committee on Aging estimated that more than 10,000 Americans have been victimized by precious metals fraud, with losses totaling around $300 million. Given that many victims do not know they have been cheated, this amount could be even more. In addition, the regional director of the Federal Trade Commission has warned “. . . there’s so much subjectivity in the value of coins, it’s always ripe for deception.”
States and cities in Texas, Kentucky, Ohio, Tennessee, Minnesota, New York, Florida, Washington, California and elsewhere have investigated and prosecuted coin fraud scams.
In 2015, Attorney Bruce Steckler of Steckler Gresham Cochran LLP filed a class action complaint against U.S. Money Reserve, Inc. and Fidelity Gold & Bullion, LLC in the United States District Court for the Central District of California in Los Angeles on behalf of consumers who have purchased commemorative coins since 2005, based on allegedly misleading and deceitful sales tactics. The lawsuit is seeking to enjoin the defendants from further solicitation, restitution damages, and punitive damages.
The named plaintiff of the class action, Ms. Erica Stux, was allegedly solicited over the phone by the defendant companies 14 times in 7 months, eventually purchasing over $250,000 worth of coins. This was the beginning for Mr. Steckler in pursuing these companies. More recently, he has filed suits on behalf of victims of coin fraud alleging that companies through their presidents, salespeople, and marketing materials have made false, material, positive representations grossly exaggerating the value of the coins. The outcome of many of these suits was to make his clients whole again.
If you have been scammed, have purchased coins fraudulently, or aren’t sure if you have been scammed. contact us today to tell us about your experience and to set up a free coin evaluation.
Attorneys General around the nation have issued warnings and guidelines about the high risk of fraud in the rare coin market. The Federal Trade Commission warns “[i]f you’re thinking about buying collectible coins as an investment, the Federal Trade Commission (FTC), the nation’s consumer protection agency, has three words for you: research, research, research.” The Florida Attorney General cautions that “[s]lick telemarketers try to convince you that the dollar is weak and that rare coins or gems or precious metals are a solid investment that quickly increases in value. Don’t be fooled. Few consumers ever profit from investing in rare coins[.]”
Americans lose millions of dollars each year through gold coin scams. There are several companies advertising in popular magazines for gold bullion and commemorative coins as investments. They also assert that “collectible coins” have some aesthetic or historical worth that provide greater value. In addition, they often suggest that gold coins are better, safer investments and outperform bullion and other reputable investment vehicles. Unfortunately, these claims are incorrect.
Mr. Steckler recently noted, “I do not want to get a victim’s money back and then have them pay legal fees above and beyond the value of their loss. We want the consumers to be made whole, which means that we want a recovery of legal fees and expenses as well as any consumer loss.”
A 2019 article, entitled “Buy Gold Before the Terrorists Strike!” regarding another lawsuit filed by Mr. Steckler against U.S. Money Reserve, noted that, “Since the class-action lawsuit against U.S. Money Reserve in California, clients have found Mr. Steckler. Or rather, their sons, daughters, nephews, nieces, and grandchildren have found him.”
According to Mr. Steckler, precious metals are often touted as a wise and stable investment option that is less volatile or more predictable than general currency-based investments. These claims feed upon the fears of individuals who wish to secure their wealth long-term. The elderly, who are acutely aware of the legacy they will be leaving behind, are frequent targets for this fear mongering.
Mr. Steckler offers clients free evaluations of their coins by expert numismatists.
Bruce Steckler has been a partner at three Dallas-based law firms and has a national reputation as an aggressive advocate willing to take innovative approaches to achieve success for his clients. His legal acumen has won him recognition by D Magazine’s “Best Lawyers″ and Thompson Reuters as a “Texas Super Lawyer.” Mr. Steckler enjoys an “AV Preeminent” rating by Martindale-Hubbell Law Directory, its highest peer rating. He was selected for the Plaintiff’s Hot List in 2011 by the National Law Journal. He was named a finalist for Public Justice Trial Lawyer of the Year 2012, an honor that is awarded to the attorneys who “made the greatest contribution to the public interest within the past year by trying or settling a precedent-setting or socially significant case.” He has also been named one of the “Top 100 Trial Lawyers” by the National Trial Lawyers. Mr. Steckler has been appointed by both federal and state court judges to lead some of the most significant cases in the United States such as the MDL-2047: Chinese-Drywall Products Liability Litigation, In Re Checking Account Overdraft Litigation, MDL 2428: In Re: Fresenius Granuflo/Naturalyte Dialysate Products Liability Litigation, and In re: Ford Fusion and C-Max Fuel Economy Litigation to name a few. He is a member of the State Bars of Texas, Louisiana, New York, Pennsylvania and Missouri, and has been admitted to practice in various federal district courts and courts of appeal throughout the United States.
Contact us today to tell us about your experience and to set up a free coin evaluation.
Contact us today to tell us about your experience and to set up a free coin evaluation.
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