If you’ve watched Glenn Beck you know about Goldline. Goldline is one of Glenn Beck’s sponsors. They make money when you buy their product (as most companies, of course). Glenn Beck pushes you to buy gold through his attempts to scare you and imply that gold is the only way to ensure your money is safe. Beck then recommends Goldline or you see commercials for Goldline, where Goldline hopes you call them first out of convenience, or out of trusting Glenn Beck’s recommendation.
Sure, gold is a good investment – as bullion, but that isn’t what Goldline tries to sell you. Due to their business practices, Goldine is currently under investigation together by the Santa Monica City Attorney’s office and the Los Angeles County District Attorney’s office, and in a separate investigation by Congress.
Thanks to The Big Picture and Jess Bachman, here is a graphic chart that provides an excellent summary of how Goldline works and provides some background as to why they are under investigation
(Click for larger version):
If you are considering investing in Gold, I would suggest talking with your Financial Planner. If you don’t have one, perhaps you should consider looking for a reputable one. Having someone that has an expertise in the field will most likely make more informed decisions with your money, not to mention save you all the time it will take and the headaches it will bring to figure it all out by yourself.
CBC also provides a nice rundown on this whole “buy gold!” craze (from the Canadian perspective.) Reuters has a more recent article which is more general, but not focused on any one particular country.
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George says:
December 8, 2011 at 1:56 pm (UTC -5 )
Could be the Better Business Bureau be a Co-Conspirator in Alleged Goldline Fraud?
We depend on Better Business Bureau (BBB) ratings to create decisions on which companies patronize. We have faith that the data we obtain is reliable and accurate, produced for the benefit of the consumer. What a shock, then, it truly is to discover that the BBB makes it possible for complaints to become erased and rankings to become increased, if businesses are willing to pay the best price.
Goldline International, a North American precious metals dealer, was a solid selection for buyers of gold and silver bullion, coins, and investments – or so it seemed when examining information supplied by the BBB. With an “A” rating, shoppers trusted that Goldline provided solid value for high-quality products. It wasn’t until the company was accused of a lengthy list of violations by the Santa Monica City Lawyer that the BBB lastly downgraded Goldline to its lowest score of “F”, as the public discovered that Goldline has more than 100 complaints on record.
Goldline has been alleged to have involvement in criminal activity, including bait and switch schemes, grand theft by false pretense, false advertising, elder abuse, and conspiracy to commit all the above. Several of the alleged fraudulent ploys swindled buyers by pulling them in with gold bullion, then encouraging them to reinvest their funds in rare coins, charging excessive commission. The business standard for coin commission is approximately 15% – some complaints claim that Goldline charged 2000% or more.
How then, with numerous complaints, did Goldline accomplish its “A” status with the BBB? Why didn’t the BBB analysis approach ferret out the alleged scam? It is actually now coming to light that the BBB just isn’t solely for the benefit of customers. Investigators have reported that BBB ratings might be bought, with greater ranking and removal of complaints offered to the highest bidder.
Contemplate the following BBB data listed for Southern California’s most well-known precious metals dealers:
Goldline International, Inc. F* Rating 73 Complaints
Monex Deposit Company A+ Rating 69 Complaints
Capital Gold Group, Inc. A- Rating 14 Complaints
Lear Capital Inc A+ Rating 55 Complaints
Merit Financial Services A+ Rating 47 Complaints
*Change from “A” just after Santa Monica City Attorney complaint filed.
These numbers are alarming, as shoppers realize corporations with many complaints are still rated “A+” with the BBB. The Santa Monica City Lawyer has filed charges against Goldline executives, including former CEO Mark Albarian, present CEO Scott Carter, Robert Fazio, Luis Beeli, Charles Boratgis and Stephanie Howard. BBB executives should also be held accountable for their role in permitting the enterprise to practice its alleged cheating, by misleading shoppers into believing that Goldline was a reputable investment firm.
Firms will continue to get away with criminal activity, so long as the BBB is allowed to continue its 80-year-old practice of “pay to play”. Until the public demands justice, BBB management will continue to profit while buyers pay. Why aren’t these names on the Santa Monica City Attorney’s list?
Stephen A. Cox (aka Steve Cox) – President/CEO
Beverly Baskin – Senior VP
Genie Barton – Vice President and Director, On the web Behavioral Marketing Program
Rodney L. Davis – Senior VP Enterprise Programs
Joseph E. Dillon – VP and CFO
Victoria Doran – VP Brand & Digital Media
Chris Garver – Senior VP, Chief Info Officer
Frances Henderson – National Director, Privacy Initiatives
Susan Kearney – Senior VP & Chief Marketing Officer
Wayne J. Keeley – VP & Director, CARU
Elaine Kolish – VP & Director Children’s Food & Beverage
Andrea C. Levine – Senior VP, NAD
Brenda Linnington – Director, BBB Military Line
Peter Marimello – VP, Electronic Retail Self Regulation Plan
C. Lee Peeler – EVP & President NARC
Steven Salter – VP, Standards & Services
Anaise Schroeder – VP Human Resources
H. Art Taylor – President & CEO, BBB WGA
Mary Lou Watkins – Senior VP, Chief of Staff
Bennett Weiner – VP, CBBB & COO, BBB WGA
Richard Woods – VP, General Counsel
Vincent L. Gottuso – President, Southland BBB Office
Mary Lou Diaz – Director of Consumer Services, Southland BBB Office
Mr. Tom Bartholomy – President/CEO
Ms. Janet J. Robb – President
Ms. Jan Quintrall – President
Mr. Matthew Fehling – President
Mr. Edward J. Johnson, III – President and CEO
It is time to take action to protect ourselves, as well as the elderly that Goldline preys on. Make your voice heard by taking these steps:
Write towards the BBB: Send your complaint letter towards the Council of Better Business Bureau, 4200 Wilson Blvd, Suite 800, Arlington, VA 22203-1838 – Phone: 703-276-0100 – Fax: 703-525-8277
Write to your state Lawyer General: Their addresses are listed on your state government’s website, or use your internet search engine to locate. Title your complaint Deceptive and Unfair Trade Practices by the Better Business Bureau.
Write towards the Federal Trade Commission (FTC): Complaints are easily filed on line at https://www.ftccomplaintassistant.gov/.
This is a violation of every American’s trust. We need to work together to send our message, and put the Better Business Bureau out of small business.
How Goldline Works and Why it is Seen as a Scam | The Curiosity Blog | Gold Coins Seller says:
August 27, 2010 at 12:08 am (UTC -5 )
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