Wall Street-style shenanigans alive and well in gold marketing schemes
Glenn Beck's Favorite Gold Company Charged With Fraud
By Tim Murphy
Tue Nov. 1, 2011 4:02 PM PDT
Mother Jones
Goldline International, the California precious metals retailer promoted by Glenn Beck and other right-wing radio hosts, was formally charged with 19 criminal counts—including grand theft by false pretenses, false advertising, and conspiracy—on Tuesday by the Santa Monica City Attorney's Office. The criminal complaint also implicates Goldline CEO Mark Albarian, along with two other company executives and two salespeople.
The charges detailed in the complaint support what MoJo's Stephanie Mencimer first reported in 2010: Using aggressive telemarketing tactics, Goldline employees routinely pressured customers to purchase expensive coins with mark-ups so steep that it was very unlikely the consumer would ever make his money back. The company racked up a long list of complaints with the Federal Trade Commission, and at one point was sanctioned by the state of Missouri. But Beck and other endorsers (including liberal talker Ed Schultz) lent an air of legitimacy to the whole operation, sowing fears of a total economic collapse to help make the pitch for Swiss Francs. Beck's pitch went a step further, arguing that in the event of a total financial meltdown, the government would confiscate gold bullion—meaning you should invest your money in coins instead.
(More here.)
By Tim Murphy
Tue Nov. 1, 2011 4:02 PM PDT
Mother Jones
Goldline International, the California precious metals retailer promoted by Glenn Beck and other right-wing radio hosts, was formally charged with 19 criminal counts—including grand theft by false pretenses, false advertising, and conspiracy—on Tuesday by the Santa Monica City Attorney's Office. The criminal complaint also implicates Goldline CEO Mark Albarian, along with two other company executives and two salespeople.
The charges detailed in the complaint support what MoJo's Stephanie Mencimer first reported in 2010: Using aggressive telemarketing tactics, Goldline employees routinely pressured customers to purchase expensive coins with mark-ups so steep that it was very unlikely the consumer would ever make his money back. The company racked up a long list of complaints with the Federal Trade Commission, and at one point was sanctioned by the state of Missouri. But Beck and other endorsers (including liberal talker Ed Schultz) lent an air of legitimacy to the whole operation, sowing fears of a total economic collapse to help make the pitch for Swiss Francs. Beck's pitch went a step further, arguing that in the event of a total financial meltdown, the government would confiscate gold bullion—meaning you should invest your money in coins instead.
(More here.)
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