On Monday, a California judge froze the assets of Superior Gold Group LLC of 100 Wilshire Boulevard, as well another office in Woodland Hills,  after it was accused of fraudulent business practices in a civil lawsuit filed against the company and owner Bruce Sands by the Los Angeles County district attorney and the Santa Monica city attorney.
Editors Note: This company has NO relationship to Superior Galleries, a well known and respected numismatic firm.

Superior Gold Group, which sold gold coins and bullion and other precious metals, is alledged to have taken  payments from customers but never delivered the gold ordered, charged prices much higher than fair market value and misled customers into buying expensive specialty coins according to the lawsuit, filed Friday.

In their lawsuit, the agencies said Superior Gold took advantage of investors who flocked to gold as the price of the precious metal rose and the value of many other investments fell in recent years.

“By fostering fear and confusion among its customers, Superior has induced them to pay far above market prices for various gold products,” the complaint said.

In a report by The LA Times, they recounted one victims story…”

Steven Siry, 61, of Los Angeles is one customer who believes he was ripped off. Siry said he invested $20,000 in a “gold IRA” through Superior Gold. But company representatives sold him collector’s coins at an inflated rate rather than offering him bullion, and it took more than a year and numerous phone calls before the coins were delivered to the trust company that was to hold them, he said.

Siry estimates the actual value of the gold, when it finally arrived, as a little more than half of what he paid for it.

“It was a big mess, it was uncomfortable, and I felt kind of stupid, quite frankly, because I didn’t do enough shopping before I used them,” he said.

In another complaint the victim stated: “Nearly two years ago (Mar. ‘09), I purchased approx. $47, 000 worth of gold and silver coins (my entire life savings). I have yet to recieve (sic) a single coin! I have been calling for years and they refuse to give me my money back or to buy my coins,” (more…)

What do you do when a gold seller fails to deliver or the merchandise you received was not as described when you ordered it?  Who can you contact for help when you don’t receive payment for gold you’ve submitted to sell?

In two recent cases, “Howard” in Mississippi wired $20,000 several months ago to a California coin and bullion dealer to purchase gold coins, and “Richard” in Virginia sent $150,000 to the same dealer.  With the recent run-up in bullion prices they both would have made a nice profit, except they still have not received any gold from the dealer.  Howard laments, “All I’ve gotten is the run-around.”

“If you don’t know gold coins, you’d better know your gold coin dealer,” is the advice to collectors and investors from three nonprofit organizations: the American Numismatic Association (www.money.org), the Industry Council for Tangible Assets (www.ictaonline.org) and the Professional Numismatists Guild (www.pngdealers.com).

“There are many reputable, professional numismatists in the United States,” the three organizations emphasize.  “Before you make a purchase or offer something for sale, do your homework and check the dealer’s credentials.  For example, contact the Better Business Bureau to check the company’s BBB rating or if the company is even accredited by the BBB.”

A listing of Better Business Bureau accredited and rated companies nationwide can be found online at www.bbb.org.

The dealer that received the combined $170,000 in unfulfilled purchase orders from “Howard” and “Richard” had an “F” rating from the BBB.

Typically, dealers who are unresponsive to reasonable requests from customers seeking resolution of disputes are not involved in the mainstream of numismatics, but may advertise in prominent, mainstream news media.

Based on the experiences of the ANA, ICTA and PNG, and in consultation with law enforcement agencies, the three organizations suggest that buyers or sellers of gold coins who encounter problems consider taking these actions:

• Make copies of all correspondence, receipts and transactions and if possible have copies of advertisements or the dates and times ads were broadcast.
• Always contact the company directly to try to resolve the dispute.  Ask for the manager or company owner.
• Take thorough notes of your conversation(s).

If the problem is still not resolved after a reasonable amount of time, contact the Customer Service and/or Advertising Departments of the news media organization(s) that published or broadcast the company’s advertisements and let them know about the problems.

The ANA, ICTA and PNG advise: “It’s your money, so do your homework before placing an order, and if there is a problem then don’t just sit back and wait.  Be persistent in your efforts to resolve the dispute. Follow up with the company you did business with and the agencies where you’ve filed a complaint.  You may also want to consult with an attorney.” (more…)

All Editorial and Commentaries posted on CoinLink represent the opinions of the author(s), who are soley responsible for this content. All points of view are encouraged and comments are welcomed.

By Laura Sperber – Hot Topics Blog

I say a heart-felt thanks to everyone who has emailed me support concerning the fight against coin doctors the past several months. Due to my hectic travel schedule, sometimes I just can’t respond to all your emails-but do know I read EVERY SINGLE ONE!

EVEN IF YOU ARE A NOT BIG DEALER, YOU COUNT

Every single person counts and is needed in this fight. Every single person has a voice that counts. Do not think there is nothing you can do.

You do not have to right on a blog like I do, you can just talk to your fellow collectors or dealers, at shows, clubs, or wherever. Send an email or a letter to the grading services, the numismatic organization, or the coin papers. The more “pressure” that is put applied, the better the results will be. If people don’t speak up it will be back to biz as usual for these bad guys.

A small dealer came up to me at the PCGS Invitational. He told me “I support you 100%”. He told me how badly he HATES the docs and anyone who is a mule for them. He told me how he has told one dealer friend why he won’t do business with him anymore and how he shoos away the docs from buying his coins. But he was upset because he felt he has no where to speak out. I told him if he can write a letter to an editor of a publication that’s great. I also told him-his voice has already spoken and he is a HUGE help. He definitely has the “RIGHT” attitude. Just imagine if very non doc did what he did-or had his attitude. I believe he also told me he is quitting the PNG.

At this point, the PNG has PROVEN (to me, in my opinion) with out any doubt to be the most WORTHLESS organization ever formed in coins when it comes to protecting the consumer and the coins themselves. As predicted, the PNG came up with a definition of coin doctoring and then all has been quiet since. I was totally disgusted that one of the PROVEN trouble makers of the PCGS lawsuit proudly displayed his PNG flag and was set up and doing business PNG day. That is a slap to EVERYONE (from the smallest collector to the biggest dealers). Meanwhile a high ranking PNG official told me he thought I was grandstanding on these issues for publicity. That’s why nothing makes me prouder than NOT being a PNG member.

I BELIEVE THIS IS THE BACKBONE OF TODAY’S PROBLEMS

Nothing disgusts me more than how dealers-especially young dealers disrespect the coin business. I watch the brightest potential talent all lean toward being “crack out” dealers and eventually fading in to full coin doctoring. Why isn’t the PNG working to scare them straight? Why can’t they educate them that coins are a treasure that need to be carefully saved in their original form? We desperately need to break this negative attitude or in 20-30 years it is a real possibility that the % of coins that will have been messed with in as high as 50%. The docs are all about making money. They will do whatever they can to a coin to gain a profit.

All the dealers refuse to blame their buddies or are in pure denial about the issues. So many dealers tell me I am so wrong and that its the grading services who should catch the bad coins. Here is what they need to wake up too: DEALERS WHO FEEL ITS THEIR RIGHT TO VIOLATE THE GRADING SERVICES SUBMISSION CONTRACTS AND FRAUDULENTY SUBMIT “WORKED ON” COINS. Key word: FRAUD. These guys should not only be exposed, but they should be forced to pay back ALL their ill gotten gains in multiples and perform numismatic community service of retraining and supporting dealers from NOT being doctors.

THE PCGS LAWSUIT HAS STARTED TO SHOW SOME CHANGE

I was speaking with John Albanese (the founder and finalizer at CAC). He confirmed to me that the amount of “messed with” coins he has seen since the lawsuit has been seriously reduced. That’s a huge plus. But that does not mean these rats are on the run. As evidenced in a Coin World Article recently, even after the lawsuit was filed one of the defendants still had the disgusting audacity to be ready to doctor more coins. So as you can see, this is nasty and serious war against sick and greedy individuals. (more…)