Securities News Releases
Friday, October 06, 2006
Contact: Stacie Temple, (573) 526-5076
Contact: Carrie Bebermeyer, (573) 526-0949
All That Glitters Is Not Gold: Carnahan Helps Investor Recover Money from Gold Coin Investment
Jefferson City, Missouri - Secretary of State Robin Carnahan's Commissioner of Securities Matt Kitzi entered into a Consent Order today with Goldline International, Inc., out of Santa Monica, California, that allowed a Missouri resident to recoup more than $200,000 from an investment in gold coins gone sour.
According to the order, Goldline's agent convinced the elderly investor that she should cash in her other investments and instead put her money into gold coins.
The Securities Division's investigation initially examined allegations of Goldline's improper actions as an investment adviser, and also reviewed the investor's complaints over advice and ongoing interactions with the company.
Pursuant to the order, Goldline agreed to return over $217,000 to the investor, and the Cooper County resident also received 26 gold coins currently worth approximately $15,000.
In addition to the money and coins which Goldline paid to the investor, the company also paid the state's investigative costs and made a $32,000 payment to the Missouri Investor Education and Protection Fund.
"Just as with stocks and mutual funds, investments in less common things like gold and gold coins should be entered into cautiously," said Carnahan. "We're pleased that we were able to help the investor get her money back in this case. I urge all investors, and particularly seniors, to understand the risks involved with any type of investment and make sure that it is suitable for their particular financial situation."
For more information regarding investments and fraud protection, visit the Secretary of State's web site at www.sos.mo.gov/securities or call the toll free investor hotline at 1-800-721-7996.