As part of a recent court judgment, Goldline International, Inc., one of the nation’s largest precious metals dealers, was required to provide refunds to specified former customers. Those refunds are now complete: Goldline has refunded a total of more than $4.25 million to former customers, who returned their coins to the company.
In addition, Goldline has paid $800,000.00 into a separate fund, which will be used to pay other customers’ restitution claims.
Under that fund, eligible consumers who claim they were misled by Goldline may receive cash to offset the difference between their original purchase price and the current value of their coins. Consumers will not have to return their coins to be eligible for the program.
Former customers who believe they were misled by Goldline must file a claim at this website by May 22:
On February 22, 2012, the Santa Monica City Attorney’s Office obtained a final judgment and injunction against Goldline. The injunction is believed to be the strongest ever levied against a precious metals dealer. It contains strict rules for Goldline’s sales practices and requires the company to provide clear price information to consumers.
The injunction goes into effect on April 22. It requires Goldline, among other things, to:
1. Disclose its actual price markups, in recorded calls before each transaction.
2. Follow a strict, factual script when discussing certain topics with consumers.
3. Not tell consumers that the government can confiscate gold bullion.
4. Not attempt to sell customers higher-priced coins once they have already paid for bullion.
5. Set up a new phone line, staffed by non-commissioned employees, for refunds, liquidations, and other customer service.
Anthony Pacheco, a partner at the Los Angeles law firm Proskauer Rose, has begun his duties as court-appointed monitor to assure Goldline’s compliance with the injunction.