Goldline International Inc. announced an agreement Feb. 22 with the Santa Monica (Calif.) City Attorney that dismissed all charges against the company and its employees.
Under the agreement, the company agreed to enhance its industry leading disclosures to prospective precious metals buyers.
Despite its 20-month investigation, which included solicitation of complaints throughout the United States, the Santa Monica City Attorney’s Office only identified 43 Goldline customers related to the action who were unhappy with their purchases. This represented less than 1/10th of 1 percent of Goldline’s customers for the relevant three-year period.
To address those rare instances where a client was dissatisfied with a purchase, the company agreed to allow these customers to return their precious metals for a refund if they so desire. Further, at the city’s request, the company will provide a fund of $800,000 should any additional customers have concerns about their purchases.
The company will work with an independent monitor to enhance its compliance program and ensure customers continue to receive the information they need to make informed decisions.
The Los Angeles District Attorney’s Office did not participate in the prosecution of Goldline but provided its consent to the settlement.
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“This is a great outcome for our customers and for the company,” said Goldline CEO Scott Carter. “Customers have chosen Goldline for over 50 years because of our high quality service, transparency, fairness and reputation of integrity. Goldline is proud to raise the bar once again by enhancing disclosures and procedures that are unprecedented in the precious metals industry.”
In accordance with the statute governing the civil resolution, the company agreed to pay $50,000 in full satisfaction of all fees, assessments, and costs of investigation and prosecution. There was no finding of improper conduct and the company expressly denied any wrongdoing.