Gold & Silver Forum - Anyone remember not so long time ago..

Coin Companies Accused of Defrauding Consumers, Targeting the Elderly in Texas Lawsuit

HOUSTON, Feb. 14 /PRNewswire/ -- Consumers from 10 states have sued a
group of Texas telemarketers for fraud and deceptive trade practices in the
marketing of "rare" coins, according to the law firm representing the
consumers.
In a lawsuit filed in state court in Beaumont, Texas, 21 affiliated
companies and individuals are accused of using high-pressure, unlawful
telemarketing tactics to convince senior citizens and others to access
retirement savings, obtain home equity loans, or liquidate assets such as
stocks, bonds or real estate to buy gold, platinum and silver coins of
dubious worth and origin.
The defendants -- which operate out of a Beaumont, Tex., compound and
gross an estimated $300 million annually -- also are accused of making
unauthorized charges to credit cards, sending unordered coins to customers,
fabricating information about the origin and current and likely future
value of coins, and not honoring return guarantees. The defendants include
Universal Coin & Bullion, Ltd., 1st American Reserve, 1st Capital Reserve,
1st Fidelity Reserve, and 1st National Reserve,:bull-buddy-icon: among others.
Attorney Jason A. Gibson, of The Gibson Law Firm in Houston, represents
the 15 consumers, who spent $3.4 million on coins marketed by the
defendants. The group's petition alleges violations of Texas law, including
negligence, negligent misrepresentation, fraud, the Deceptive Trade
Practices Act (DTPA), and conspiracy. The plaintiffs are seeking actual and
exemplary damages of $500 million, including trebling of damages allowed
under the Texas DTPA.
Mr. Gibson said, "The Federal Trade Commission and state attorneys
general throughout the nation have issued warnings about unethical coin
dealers and telemarketers. Now, consumers, supported by reputable coin
dealers, are fighting back. The abuses committed by the very sophisticated
'boiler-room' operations of this unregulated industry are predatory, and
must be stopped by the government or in the courts. Everything from the
9/11 tragedy to the natural fears of the elderly was invoked to induce
sales. Several of our clients are in their 80s, and one has Alzheimer's
disease. The conduct in this case is outrageous."
According to the complaint, the defendants:

- Use a company-wide scheme that encourages sales persons to use unlawful
and misleading selling points and sales tactics on unsuspecting
customers;

- Obtain credit card numbers and charge customers' cards, without
permission in a practice known as "banging" or "burning" a credit card;

- Mislead customers about the mark-up of each coin being sold, failing to
disclose the real mark-up and failing to disclose that a "middle-man"
company has been established to allow an additional mark-up of coins
that is not disclosed to customers;

- "Bait and switch," selling customers on more expensive coins or coins
defendants know they do not have in their possession, and then send
customers less expensive coins or coins the customers did not order;

- Represent and market themselves as different companies with different
addresses, when in reality, they are all located under the same roof on
the same premises.
The plaintiffs are from Birmingham, Ala.; Gulf Shores, Ala.; Newport
Beach, Calif.; Rexburg, Idaho; Palm Beach Gardens, Fla.; Tavares, Fla.;
Birden, Ill.; Belle Chasse, La.; Freemont, Mich.; Johnson Lake, Neb.;
Columbus, Ohio; Austin, Texas; and San Antonio, Texas.
The case is "O'Neill, et al., v. 1st Capital Reserve, L.P., et al.,"
(No. D 178-641) in the 136th District Court of Jefferson, County, Texas.
Attorney Contact:
Jason A. Gibson (jag@jag-lawfirm.com)
The Gibson Law Firm
Houston
(713) 650-1010
http://www.jag-lawfirm.com

I got my coins for one....I can not complain!:aetsch:
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