State suing coin dealer amid crackdown

FROM:
http://www.bizjournals.com/columbus/...9/daily24.html

State suing coin dealer amid crackdown

Business First of Columbus
by Matt Burns
Wednesday, July 1, 2009, 12:36pm EDT

Ohio Attorney General Richard Cordray is suing a Long
Island, N.Y., state coin dealer as part of a
multistate crackdown on alleged consumer fraud.

Cordray said Wednesday that his office has filed suit
in Hancock County Common Pleas Court against
Amityville-based Alliance Coin Inc. and its president,
Barry Rothman. The state alleges Alliance violated
Ohio consumer protection law, and it wants to levy
financial penalties and hold the company responsible
for reimbursing consumers.

Cordray's office said the dealer of rare coins
allegedly has used high-pressure sales tactics over
the phone and is targeting senior citizens in its
business pitches. Cordray claims the company has
misrepresented the value and investment grade of
the coins in its business dealings and operated
without registering in the state as a telephone
solicitor.

Reached by phone Wednesday, Rothman declined to
comment on the lawsuit.

Kim Kowalski, a spokeswoman for Cordray's office,
said the state's investigation began after it
received a complaint from an 82-year-old Hancock
County resident who allegedly spent more than
$25,000 on Alliance coins to later discover they
were worth much less. Alliance claims to offer a
15-day refund window, but that might not be
enough time for consumers to discover any gaps in
value, the Attorney General's Office said.

The Hancock County complaint is the only one filed
with the state, but Kowalski said the office is
aware of other allegations made by Ohio consumers.

The lawsuit is part of a national sweep dubbed
Operation Short Change that targets companies
accused of exploiting consumers amid the
recession. Ohio is one of 14 states that have
filed suits, while the Federal Trade Commission
has mounted 15 cases and the Department of Justice
is pursuing 42.


...

The Numismatic Consumer Alliance http://www.stopcoinfraud.org/nca2006/press.html
and founders Laura Sperber, Steve Ivy, John Albanese (among others)
have been effective in making life a lot harder for the boiler-room
operators who prey on the elderly.

"Frank Provasek" wrote in message
...
The Numismatic Consumer Alliance
http://www.stopcoinfraud.org/nca2006/press.html
and founders Laura Sperber, Steve Ivy, John Albanese (among others)
have been effective in making life a lot harder for the boiler-room
operators who prey on the elderly.

A nice idea in principle but it sounds like a large can of worms.

Policing grading agencies? Maybe NGC should be investiaged because they are
not as strict as PCGS.

At what percentage over "market value" (however that is determined) do we
consider a buyer as being taken?

On Jul 4, 2:25*pm, "PC" wrote:
"Frank Provasek" wrote in message

...

The Numismatic Consumer Alliance
http://www.stopcoinfraud.org/nca2006/press.html
and founders Laura Sperber, Steve Ivy, John Albanese (among others)
have *been effective in making life a lot harder for the boiler-room
operators who prey on the elderly.

A nice idea in principle but it sounds like a large can of worms.

Policing grading agencies? *Maybe NGC should be investiaged because they are
not as strict as PCGS.

At what percentage over "market value" (however that is determined) do we
consider a buyer as being taken?

In many businesses offering an item that is not as advertised risks
the customer returning it expecting a refund. Some coin grading
questions are just a matter of opinion, but I've certainly seen cases
that are not. Some are clear enough that the idea seems reasonable.

Peter wrote:
On Jul 4, 2:25 pm, "PC" wrote:
"Frank Provasek" wrote in message

...

The Numismatic Consumer Alliance
http://www.stopcoinfraud.org/nca2006/press.html
and founders Laura Sperber, Steve Ivy, John Albanese (among others)
have been effective in making life a lot harder for the boiler-room
operators who prey on the elderly.

A nice idea in principle but it sounds like a large can of worms.

Policing grading agencies? Maybe NGC should be investiaged because
they are not as strict as PCGS.

At what percentage over "market value" (however that is determined)
do we consider a buyer as being taken?

In many businesses offering an item that is not as advertised risks
the customer returning it expecting a refund. Some coin grading
questions are just a matter of opinion, but I've certainly seen cases
that are not. Some are clear enough that the idea seems reasonable.

We can all cite, and I have often cited, cases that we individually consider
to be egregious, but where, exactly, is the cutoff point between "matter of
opinion" and "clear enough that the idea seems reasonable"? Warning:
giving so much as the tiniest hint of opinion in your answer to that
question muddies, not clarifies, the water. 8)

James the Conflicted

"Frank Provasek" wrote in message
...
The Numismatic Consumer Alliance
http://www.stopcoinfraud.org/nca2006/press.html
and founders Laura Sperber, Steve Ivy, John Albanese (among others)
have been effective in making life a lot harder for the boiler-room
operators who prey on the elderly.

Speaking from experience, Fwankie?

On Jul 4, 2:32*pm, "Bob F." wrote:
"Frank Provasek" wrote in message

...

The Numismatic Consumer Alliance
http://www.stopcoinfraud.org/nca2006/press.html
and founders Laura Sperber, Steve Ivy, John Albanese (among others)
have *been effective in making life a lot harder for the boiler-room
operators who prey on the elderly.

Speaking from experience, Fwankie?

Actually, it is amusing (and sadd) how the second poster in this
thread tries to associate himself with several big-time & well-
capitalized "names" in the high-end portion of the numismatic
industry.

oly

"oly" wrote in message
...
On Jul 4, 2:32 pm, "Bob F." wrote:
"Frank Provasek" wrote in message

...

The Numismatic Consumer Alliance
http://www.stopcoinfraud.org/nca2006/press.html
and founders Laura Sperber, Steve Ivy, John Albanese (among others)
have been effective in making life a lot harder for the boiler-room
operators who prey on the elderly.

Speaking from experience, Fwankie?

Actually, it is amusing (and sadd) how the second poster in this
thread tries to associate himself with several big-time & well-
capitalized "names" in the high-end portion of the numismatic
industry.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

He frequently does so.
I doubt anybody believes there is an association however.
I DID notice that the "full time" dealer currently has no auctions on
fleabay.

On Jul 4, 4:16*pm, oly wrote:


Actually, it is amusing (and sadd) how the second poster in this
thread tries to associate himself with several big-time & well-
capitalized "names" in the high-end portion of the numismatic
industry.

oly

I was associating the Numismatic Consumer Alliance with those
dealers, not myself.

I am, however, longtime friends with Steve Ivy. Both of us were bid
board members at the Fred Causey coin
shop in Fort Worth.

On Jul 5, 6:42*pm, Frank Provasek wrote:
On Jul 4, 4:16*pm, oly wrote:



Actually, it is amusing (and sadd) how the second poster in this
thread tries to associate himself with several big-time & well-
capitalized "names" in the high-end portion of the numismatic
industry.

oly

I *was associating the Numismatic Consumer Alliance with those
dealers, not myself.

I am, however, longtime friends with Steve Ivy. *Both of us were bid
board members at the Fred Causey coin
shop in Fort Worth.

Whoa squire, say no more!!! Say no more!!! I used to attend local
coin club meetings with Marc Chrans, so I know all about these brushes
with greatness.

oly