Goldline International, a gold and precious metals dealer based in California, has recently been accused by a former employee of terminating her employment because she objected to alleged scam tactics being used against the company’s elderly clients. Courthouse News Servicereports that Carol Taylor Gabrelow, a former compliance officer with Goldline, has started a lawsuit against the company with her husband and former Goldline employee Joel Gabrelow. She alleges that she and her husband were fired by Goldline after she reported to her superiors that their telemarketing sales tactics were in violation of the law.
According to the report from Courthouse News Service, the complaint states that “Goldline specifically targets vulnerable consumers with sales tactics designed to pressure those consumers into buying products that would often result in the consumer losing over one-third of his or her investment the instant the purchase is made, meaning that, even when the price of the precious metals increases, because these consumers were deceived into purchasing coins with mark-ups exceeding 50 percent, it could be years, if ever, before the consumer recoups, much less makes any profit on, the investment.” The complaint essentially alleges that Goldline misled its vulnerable customers into believing that the US government could seize their gold bullion and that an investment in their gold coins would help customers save on taxes.
Although the company was subjected to a criminal investigation for gold investment fraud last year, Gabrelow claims the company later continued to use unscrupulous tactics in its gold sales and seeks damages for wrongful termination, retaliation, and other violations. Goldline has already settled the previous criminal charges and was ordered to pay millions to prior investors and adhere to strict, new disclosure requirements.