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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 116789
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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About 1 year ago I heard an ad gold on a radio talk show

Customer Question

About 1 year ago I heard an ad for buying gold on a radio talk show whose host's opinion I greatly valued (until this experience). Given that I shared the belief that the US economy was in danger, and had been considering purchasing gold in some form, I called the number the host announced.
The saleswoman confirmed my fears, and convinced me to purchase rare gold coins from the company she worked for. She touted the coins as uncommon, even among this class of coins. She convinced me that the value of what she was selling me would triple, quadruple, etc. over a 3-5 year period, and that this investment was more "wealth preservation" than a quick fix. I fell for her pitch, and purchased way more than I had originally planned for. I even raided my IRA and withdrew funds to pay for it. Now I owe thousands of dollars in my 2014 taxes, due to this withdrawal. I told her that I was living on a limited income, and hesitated to withdraw any of my retirement funds. When I asked how I was supposed to pay those taxes, she said that I could use some of the British Sovereigns that she wanted to sell me.
I have the coins in my possession now, and out of curiosity I brought a few to a local dealer to see what the actual value would be. He informed me that the ones I showed him were quite common, and that I would only be able to receive 50%, at best, ***** ***** I paid for them.
Do I have any legal recourse to recover any of the money I paid to this company? I realize that I'm an adult and in my right mind, but given the enormous markups they used, and their misleading me regarding how I was to pay my 2014 taxes, I would think that there must be something I can do.
Thanks for your help,
John K.
Submitted: 1 year ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If she misrepresented the value of the coins and they are not as rare as the company claimed them to be, you could potentially sue them for unfair and deceptive business practices and breach of contract for them not providing coins as rare as they claimed they were. That is the only legal basis you can use to sue to try to recover some of your money.
If the coins are rare as they represented, even if they did not appreciate as she claimed they would, you could not sue for that, since it was an investment and investment places risk on the buyer. You can only sue if they misrepresented the actual rarity of the coins making them more valuable than they were.