SantaMonica Daily Press
Gold Company Investigated by City Attorney
By Lenika CruzMay 24CITY HALL The Santa Monica City Attorney's office last week confirmedthat a local gold company is under investigation after receivingcomplaints that the business was possibly scamming customers. The company, Superior Gold Group (SGG), is apparently based in Nevadaalthough it also operates out of an office on Wilshire Boulevard inSanta Monica. One of the complainants, Mr. Roberts from Tennessee, who preferred touse only his last name, said that after seeing a commercial for thecompany on Fox News last December, he and his wife looked intoinvesting their savings in gold coins. Convinced of the company's legitimacy, they called a hotline andreceived a brochure in the mail. After speaking with a representative, they sent in a cashier's check for $10,000 worth of gold. Four months later, they still have not received their order. BulldogRealtorsadvertisementAfter the promised delivery date came and went, Roberts called thecompany only to find that his account executive no longer worked there. He then spoke to other representatives who told him that his orderwould be shipped shortly. When the coins still did not arrive, Roberts finally managed to contactthe listed president, Art Jackson, who assured him that he wouldpersonally make sure that the order was shipped immediately. "Now when I call the company and try to talk to Mr. Jackson, he says'Leave a message and I'll get back to you within 24 hours, '" saidRoberts. "But that doesn't happen. "After deciding they had been scammed, Roberts tried to contact theBetter Business Bureau (BBB), but to no avail. Roberts' story bears strong resemblance to that of another ex-customer. "My client found it totally impossible to get in touch with anyone fromthe company, " said Matt Ferguson, an attorney from the Colorado lawfirm Garfield & Hecht. Ferguson's client, Ray Larsen from Miami Beach, Fla., is currentlysuing SGG for allegedly accepting a $250,000 payment for gold coins andfailing to deliver the product or return his money.
According to a complaint filed by Larsen last December, "Uponinformation and belief, SGG and [their president John] March have usedand/or lost Larsen's money in a Ponzi-type scheme and/or have usedLarsen's money to capitalize on the run-up in the price of gold forDefendants' own illegal benefit. "Larsen and Ferguson are still waiting to go to court, a process whichhas been further complicated by difficulties in contactingrepresentatives from SGG. Ferguson expressed that interaction with thecompany's attorney has been less than straightforward. "I've spoken to him and haven't got much help out of him, " saidFerguson. "I'm not sure where he is actually located. "The case will go to court in the coming months. According to Ferguson, reports of fraud have been emerging across thecountry. "We've spoken to people in Arizona, the Carolinas, Georgia, and we'resuing them in Florida, " said Ferguson. "We've been contacted frompeople all over. "Calls to the company's attorney for comment have not been returned. SGG's website claims that the company "has been in business for 10years without complaint, " though it mentions that "a disgruntledemployee" has posted negative reviews on the Internet. The websitefurther asserts that the "employee" is being sued. The company's website claims that they have maintained a "stellarreputation" over their 10 year history, receiving "nothing short ofglowing praise" through the Federal Trade Commission, Securities andExchange Commission, and the Better Business Bureau (BBB).
The BBB has given the company an "F" rating, partly based on the factthat out of 25 complaints, six have gone unanswered. "It's common for this kind of business to have occasional complaints, "commented an official from the City Attorney's office. "Even legitimatebusinesses have complaints from time to time. Still, the rating is notthe only thing you want to look at. "News of SGG's investigation came to light shortly after New YorkCongressman Anthony Weiner publicly attacked Gold Line International another gold company based in Santa Monica claiming that itovercharges for its coins and uses unethical marketing tactics thatplay on customers' fears of the troubled U.S. Economy. Weiner also criticized talk show host Glenn Beck, a professed client ofGold Line International whose show is also sponsored by the company. Superior Gold Group has also run commercials during Beck's show. Though the controversy over gold coins is as political as it isfinancial, for others like Roberts, it is very personal. "I'm 73 years old and in bad health, " Roberts said. "I could try to geta lawyer and go to court but that would probably cost me more than whatI've already lost. "Representatives from SGG could not be reached for comment after severalphone calls and visits to their Santa Monica office. News@smdp. ComThe company is now located at 6200 Canoga Ave Suite 325 in Woodlandhills, Ca
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