Goldline, the ubiquitous benefactor for Glenn Beck, was always an obvious scam. Someone who could not see that is someone who is dumb enough to be a Glenn Beck fan (or to be Glenn Beck himself). Now a court has hit the company with a big fine and a judgment for fraud. Mother Jones reports:
On Wednesday, the Santa Monica city attorney obtained a judgment and injunction against Goldline that requires the company to radically overhaul its practices and to stop deceiving customers about prices, among other things. The company must refund up to $4.5 million to defrauded customers, and pay $800,000 into a fund for future claims. The judgment also requires the company to give up one of the staples of its marketing tactics, and one that was hyped routinely by Beck: the idea that the government’s coming for your gold. For years Beck and Goldline insisted customers should buy its “numismatic” (or antique) coins rather than standard government-issued bullion because, they claimed, in 1933 President Franklin Roosevelt had ordered the government to confiscate private citizens’ gold bullion; antique coins were spared from the seizure. The claim was a huge stretch, as was the notion Beck perpetuated that Obama was plotting to seize Americans’ gold. Now, Goldline has to quit talking about bullion confiscation lest it face further trouble from prosecutors.
To make sure that the company abides by the injunction, Goldline has to pay the cost of hiring a former federal prosecutor to monitor its operation. The monitor will have full access to company records and will perform undercover test calls to ensure that the myth of the 1933 gold confiscation has been banished from Goldline’s sales pitch…
This is the second time that a gold dealer associated with Beck has been sanctioned by prosecutors. In December 2010, Santa Monica prosecutors put the Superior Gold Group into receivership, freezing its assets and seeking restitution for its customers. Prosecutors alleged that the outfit had engaged in deceptive practices similar to Goldline’s, and had also taken money from customers and then failed to deliver any coins.
So Beck’s sponsor lied to its customers the same way Beck lies to his listeners. Quelle surprise.
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