July 2, 2025 Breaking News, Latest News, and Videos

Santa Monica Company Busted For Tricking Customers Into Buying Overpriced Coins:

The Santa Monica City Attorney’s Office has obtained a $2 million court judgment against precious metals dealer Seacoast Coin, Inc., formerly doing business as Merit Financial and Merit Gold and Silver. Merit was based in Santa Monica but did business throughout the U.S.

The case is the third brought by Santa Monica’s Consumer Protection Division against national gold coin dealers in recent years. All three cases have revolved around the same claim: that consumers were tricked into buying overpriced gold and silver coins, through misleading sales tactics.

The City’s lawsuit charged Merit with two kinds of false advertising:

— Bait and switch: Advertising gold bullion on TV at 1% over cost, then when consumers called a toll-free number, aggressively switching them into buying non-bullion coins at around 20% to 40% over cost.

— False sales tactics: Telling consumers that non-bullion coins were better than bullion due to their tax advantages, greater “privacy,” or greater investment value, when all of these claims were false.

Another tactic Merit allegedly used to switch consumers away from bullion was claiming that non-bullion coins could not be “confiscated” by the government, while bullion could be. This is a common claim in the gold coin industry. The truth is that the government can’t confiscate any kind of gold under current law.

“The gold coin industry is unregulated – it’s like the Wild West,” said Adam Radinsky, Santa Monica’s Chief Deputy City Attorney for Consumer Protection. “These businesses don’t need licenses and they aren’t bonded. Consumers often feel embarrassed and hopeless with no place to turn for help, even after being scammed out of huge amounts of money.”

Gold has become a popular investment in recent years, with individuals often spending $50,000, $100,000, or even much more. Many dealers use high-pressure boiler-room tactics to push non-bullion coins, while claiming to give out expert investment advice to unsuspecting consumers.

Many of Merit’s customers rolled over their 401(k) and other retirement accounts into gold. The lawsuit alleged that after being talked into buying Merit’s overpriced “proof” gold coins for their IRAs, these consumers saw their investment accounts drop in value 25 percent or more overnight.

On August 5, 2014, while the case was pending in court, Merit abruptly went out of business. The company’s unwinding was assigned to a third-party trustee.

Before it went out of business, Merit was one of the nation’s largest precious metals dealers. It spent millions on national TV ads promoting the sale of gold and silver coins.

“With Merit no longer operating, our goal in this case was to get as much money as possible back to consumers,” said Radinsky.

The judgment was part of a final settlement of the City Attorney’s false advertising lawsuit against Merit. The lawsuit also named as defendants the company’s co-owners, Peter Epstein and Michael Getlin.

The lawsuit was filed in February 2014 in Santa Monica Superior Court. The City Attorney brought suit under California’s Unfair Competition Law, which protects consumers from false advertising, fraud, and other unlawful business practices. As part of the settlement, defendants Peter Epstein and Michael Getlin will be dismissed.

Under the terms of the settlement:

— The court entered a final judgment against Seacoast for $2,000,000. Of that amount, $1,650,000 has been paid to reimburse former customers; $100,000 was paid to cover the City Attorney’s costs; and $250,000 will remain as a judgment against the company.

— The company paid an additional $75,000 to fund the cost of administering restitution to customers.

This case marks the third time in recent years that the Santa Monica City Attorney has taken a national gold coin dealer to court for deceiving consumers. In 2012, Santa Monica obtained judgments against Goldline International and Superior Gold Group, both of whom were using false sales tactics similar to Merit’s to push non-bullion coins.

Goldline agreed to give more than $5 million in refunds and to a sweeping injunction; its practices are still being scrutinized by a court-appointed Monitor. Superior Gold was shut down, placed under receivership, and ordered to pay $2 million in restitution to customers. Its former owner still faces federal criminal charges stemming from the company’s operation.

“Santa Monica, for whatever reason, has been the hub of the U.S. gold coin industry,” said Radinsky. “We’ve had many of the nation’s largest dealers based here. Until federal laws are passed to protect consumers of gold coins, we’ll use all laws at our disposal to crack down on deceptive practices – and hope that other jurisdictions follow suit.”

The settlement was reached on the eve of trial, as Radinsky, along with Deputy City Attorney Gary Rhoades and Consumer Specialist Paula Rockenstein, were putting the final touches on the City Attorney’s trial preparation.

in News
<>Related Posts

People are Using Palisades for “Disaster Tours.” Local Officials Are Trying to Stop Them

July 1, 2025

July 1, 2025

A new motion introduced to City Council requests a coordinated strategy from LADOT, the Los Angeles Police Department, and the...

Santa Monica Favorite Esters Rebrands as Esters Wine Shop & Oyster Bar

June 30, 2025

June 30, 2025

New Concept Launches With French-Spanish Flair and Free Bubbles Esters Wine Shop, the fave Parisian-style wine bar in downtown Santa...

Letter to the Editor: Santa Monica’s Great Park: It’s Time to Deliver on 100 Years of Promise

June 30, 2025

June 30, 2025

Santa Monica stands at the edge of history. For nearly a century, residents have consistently supported turning the airport land...

Why Nordstrom Says It’s Closing Its Santa Monica Place Location

June 30, 2025

June 30, 2025

A Nordstrom spokesperson explained the closure as a strategic realignment Nordstrom confirmed its decision to close its Santa Monica store...

Three-Bed Palisades Highlands Townhouse Hits Market for $1.7M

June 30, 2025

June 30, 2025

The Mediterranean-style property, located at 1529 Michael Lane, is part of a 71-unit community A remodeled 1,919-square-foot townhouse in the...

Six-Bed Mar Vista Hilltop Home Under Construction Lists for $5.3M

June 30, 2025

June 30, 2025

The private backyard is complete with a pool, spa, fire pit, built-in BBQ, and areas for outdoor dining A stunning...

(Video) Getty Villa Reopens Six Months After Dodging Destruction of Palisades Wildfires

June 29, 2025

June 29, 2025

With the reopening also comes a new exhibit, “The Kingdom of Pylos” Getty Villa Reopens Six Months After Dodging Destruction...

Free Virtual Planetarium Shows Coming to SMC in July

June 29, 2025

June 29, 2025

The virtual format is in place as construction of the new SMC Planetarium and Observatory nears completion The Santa Monica...

Santa Monica Adopts $793.3M Budget for FY25-27, Prioritizing Housing and Safety

June 29, 2025

June 29, 2025

The budget preserves core services and invests in major projects, including over $1 billion in hotel investments The Santa Monica...

Iranian Pastor in West L.A. Speaks as Church Rocked by Immigration Raids 

June 28, 2025

June 28, 2025

Five Detained as Fear Spreads Through Persian Christian Faith Community  Fear has spread through a West Los Angeles congregation after...

California Doubles Down on Hollywood: $750M in Tax Credits Approved for Film and TV Industry

June 28, 2025

June 28, 2025

State Lawmakers Back Major Expansion of Production Incentives, Raising Job Projections Los Angeles’ film and television industry is poised to...

Park: “Our Water Infrastructure Must Be Emergency-Ready Every Day”

June 28, 2025

June 28, 2025

Councilwoman expressed cautious relief at the news but emphasized the need for robust infrastructure The Los Angeles Department of Water...

Washington Square Pizza Opens to the Public

June 28, 2025

June 28, 2025

New York Style Pizza “By-The-Slice” Now at the Beach By Nick Antonicello  Washington Square Pizza formally opened its doors today...

California Allocates $5B for Road Repairs, Transit Expansion

June 28, 2025

June 28, 2025

The funding aims to improve road safety, reduce traffic congestion, and promote cleaner transportation California is investing nearly $5 billion...

THIS SUNDAY: Palisades Symphony Presents “Best of Broadway”

June 28, 2025

June 28, 2025

The performance will feature a full orchestra playing iconic selections, from John Philip Sousa’s *El Capitan* and George Gershwin’s *The...