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Santa Monica Coin Dealer Put in Receivership  

By Lookout Staff

December 9, 2010 – The Santa Monica outlet of a nationwide coin dealer has been taken under a court-ordered receivership pending charges that it committed unlawful, unfair and fraudulent acts against customers.

The move to take over the outlet at 100 Wilshire Boulevard, as well another in Woodland Hills, comes after the Santa Monica City Attorneys Office and the LA District Attorney filed a civil lawsuit Friday against Superior Gold Group LLC.

The group charges that the Los Angeles-based company took payments from customers but failed to provide the coins and “charged prices far higher than fair market value for the coins while concealing that markup through false and deceptive pricing practices,” said Adam Radinsky, head of the consumer protection unit for the City Attorney’s office.

The coin dealer also induced customers “through false and misleading statements, to buy more expensive collector’s or foreign coins instead of the basic gold bullion that customers typically want,” Radinsky said.

The lawsuit seeks restitution to all former customers who were bilked, an injunction from the court to prevent further misconduct and monetary penalties.

One customer posted a complaint Wednesday on Complaints Board, a popular consumer complaints web site.

“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,” the customer wrote.

The court order to place the stores under receivership was signed by Presiding Judge Gerald Rosenberg of the Los Angeles County Superior Court’s Santa Monica courthouse. It also included a temporary restraining order that freezes all bank accounts, real estate, and other assets belonging to Sands and Superior.

“Receiver Dean Pucci of the law firm Jones & Mayer took control of Superior Gold’s two locations in Woodland Hills and Santa Monica, Monday afternoon,” Santa Monica officials said. “Pucci was ordered by the court to secure the assets of the business and take over its operation.”

The court set a hearing for December 17, 2010 to decide whether the receivership and asset freeze will remain in place until the case goes to trial.

Former customers of Superior Gold Group who wish to file a complaint should go to this website:gold.smconsumer.org

 


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