Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Marketers of precious metals investment opportunities settle FTC action, (Mar 4, 2014)

By Jeffrey May, J.D.

Three Florida-based companies and their owner have agreed to settle FTC charges that they engaged in deceptive conduct and violated the Commission’s Telemarketing Sales Rule in marketing precious metals investments to consumers. The federal district court in Miami approved a consent decree the prohibits Premier Precious Metals, Inc., Rushmore Consulting Group, Inc., PPM Credit, Inc., and Anthony J. Columbo from promoting investment opportunities in the future, from misrepresenting or failing to adequately disclose the material terms of a sales offer, and from violating the Telemarketing Sales Rule (FTC v. Premier Precious Metals, Inc., FTC File No. 1223009, Case 0:12-cv-60504-RNS).

The consent decree settles FTC charges that the defendants bilked millions of dollars from investors, including many senior citizens. The agency alleged that the defendants conned consumers into buying precious metals on credit without clearly disclosing significant costs and risks, including the likelihood that consumers would subsequently have to pay more money or lose their investments. In addition, the defendants did not clearly disclose fees, commissions, and interest charges consumers had to pay to buy and maintain the investments, according to the agency. When the FTC filed its complaint in 2012, the agency contended that the defendants’ operation had taken in almost $9 million from consumers in two years.

In addition to the restrictions on certain business activities, the consent decree imposes a judgment of more than $3.6 million against the defendants, jointly and severally. The judgment will be partially suspended after Columbo relinquishes to the FTC assets estimated to be worth about $3 million. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition. The settlement also requires the defendants to provide assistance to the FTC to enable the efficient administration of consumer redress. The defendants also must record all of their telemarketing calls for ten years, under the settlement.

Attorneys: Barbara E. Bolton for FTC. Jonathan H. Rosenthal (Malman, Malman & Rosenthal) for Premier Precious Metals, Inc.

Companies: Premier Precious Metals, Inc.; Rushmore Consulting Group Inc.; PPM Credit Inc.

News: ConsumerProtection FederalTradeCommissionNews