Goldline International, Glenn Beck’s longtime sponsor, has been ordered by a Santa Monica court to refund $4.5 million to customers, set aside an additional $800,000 for future claims, and stop claiming that the government’s coming for their gold.
Adam Radinsky, the head of the consumer protection unit at the Santa Monica city attorney’s office said of the injunction:
This is a new day. Consumers in California and elsewhere, many of whom invested thousands of dollars and their life savings in the belief that the gold they were buying was a valuable and safe investment, will now get substantial relief. No one should have to suffer from predatory and deceitful sales practices. Whether they are buying gold or anything else, consumers expect a fair deal. We insisted that Goldline give them just that. We hope this case is a wake-up call to other large coin dealers and to other businesses. They need to know that it’s against the law to mislead consumers with false fears and misinformation. And consumers need to be especially careful when investing in this uniquely unregulated industry.
Yuri Beckelman, a former staffer for Weiner who worked on the Goldline investigation, felt vindicated by the injunction. He said in an email:
Goldline can try to spin it any way they want. But when you have to agree to change your business model and then pay a court ordered attorney to monitor your progress for the next five years, you’re admitting that what you were doing was wrong. While the millions in refunds Goldline was ordered to make will be meaningful to the people that were ripped off, the executives got off easy, and they know it.