November 5, 2011

A GOLDBUG AND HIS MONEY ARE SOON PARTED:

Goldline: We'll Fight Fraud Charges (MATTHEW MOSK, BRIAN ROSS (@brianross) and AVNI PATEL, Nov. 2, 2011, ABC News)

As reported on "Good Morning America," local officials in California filed a 19-count criminal complaint Tuesday against Goldline, a company that used endorsements from Glenn Beck and other conservative icons to sell hundreds of millions of dollars in gold products to consumers.

The complaint alleges that Goldline "runs a bait and switch operation in which customers, seeking to invest in gold bullion, are switched to highly overpriced coins by using false and misleading claims," according to a statement released by the consumer affairs division of the Santa Monica City Attorney's office.

The company has been charged in the court filing with misdemeanors that include theft by false pretenses, false advertising, and conspiracy, the City Attorney's office said. In addition to the charges against the company, the complaint accuses former CEO Mark Albarian, executives Robert Fazio and Luis Beeli, and salespeople Charles Boratgis and Stephanie Howard of defrauding customers. Current CEO Scott Carter is accused of making false or misleading statements. Each of the charged offenses carries a maximum penalty of one year in jail and maximum fines of between $1,000 and $10,000 per offense. 

Posted by at November 5, 2011 4:56 PM
  

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