24 Feb 2012 3:37 pm
Glenn Beck's Goldline Hit With Injunction, Agrees To Repay Defrauded Customers $4.5 MillionConservative talker-endorsed precious metal retailer Goldline International agreed to a court order this week to repay defrauded customers $4.5 million and overhaul its business practices. The injunction, handed down by the Los Angeles County Superior Court, was obtained by the City Attorney of Santa Monica, California where the company is based who had filed 19 criminal counts of fraud and theft against the company last year. Those charges have now been dismissed. Goldlines entire business model was essentially a scam, the city attorney found. It was a bait-and-switch: Consumers wanted to buy gold bullion, but salespeople preyed on their fears including falsely claiming that the government could seize bullion and misled them into buying vastly overpriced gold coins instead. Consumers typically paid more than 55 percent above the actual value of the coins, which are much harder to sell down the road, instantly wiping out a large portion of their savings.Link