Goldline Agrees to Refund Millions to Customers
The precious metals dealer Goldline will have to operate under a strict new set of rules as part of a California court settlement late Wednesday of a 19-count criminal fraud complaint brought against the company last year.
...
As part of the settlement, all criminal charges were dropped.
...
The company was charged with misdemeanors that included theft by false pretenses, false advertising, and conspiracy. In addition to the charges against the company, the complaint accused former CEO Mark Albarian, executives Robert Fazio and Luis Beeli, and salespeople Charles Boratgis and Stephanie Howard of defrauding customers. Current CEO Scott Carter was accused of making false or misleading statements. Each of the charged offenses carried a maximum penalty of one year in jail and maximum fines of between $1,000 and $10,000 per offense.
In Wednesday's settlement, approved by California Superior Court Judge Lisa Hart Cole, Goldline agreed to refund up to $4.5 million to former customers and to pay $800,000 into a fund for future claims. The settlement also sets up a series of new requirements for the company moving forward -- including provisions that the company clearly disclose its mark-up, stop telling customers that the government wants to confiscate its gold, and stop trying to persuade customers to guy collectable coins if they have called Goldline asking to buy bullion.
To ensure the company's compliance, the settlement requires Goldline to hire a monitor -- a former federal prosecutor -- to oversee its business practices for the next five years.
...
Goldline officials heralded the deal as a victory for the firm -- issuing a press release announcing that all charges against the company had been dropped.
"This is a great outcome for our customers and for the company," Goldline CEO Scott Carter said in the press release.
...