A Case Of Coin Telemarketing Fraud Here s What I Shoulda Done
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A Case of Coin Telemarketing Fraud: What I Should Have Done
Summary
Back in 1985, I received an unexpected phone call at my office from a man named Gordon Carl (not his real name, but one I'll never forget). He had a heavy New York accent, reminiscent of a gangster movie, and offered me an enticing deal on rare coins. Trusting his polished pitch, I agreed to purchase five 1943 Walking Liberty half dollars, described as MS-65 specimens. Carl assured me that his firm would buy them back, offering 5% less than the Grey Sheet bid price at any time I chose. As an eager investor, I sent a check for $1375 the next day, blinded by greed and misplaced trust.
The Initial Scam
Later in 1985, Carl's company changed names. I missed this glaring red flag and pursued more coins, trying to build a friendly relationship with Carl and his associates. Now, looking back, it's clear how gullible I was, likely bringing Carl amusement with every call.
By 1989, I decided to cash in my coins. When I called, the company had another new name, and I couldn't reach Carl. Instead, I spoke to his brother, Maurice. I tried to sell back my coins, according to the original buy-back policy, but Maurice declined, claiming no affiliation with the former companies. He even suggested he’d never heard of them, despite his brother's role. Finally, it dawned on me?"I had been scammed. I hung up, stunned and in disbelief.
Assessing the Damage
A few days later, I took my coins to a local dealer, hoping to assess their value. I didn't expect them to be MS-65, but I hoped for MS-60 or MS-63 to minimize my losses. The dealer found they were damaged from improper cleaning and advised against professional grading, as the cost outweighed their value. With no options left, I stored the tainted coins, vowing to avoid such mistakes in the future.
Hindsight and Regret
Fast forward to today. Though I avoid dwelling on the past, curiosity led me to explore “what if” scenarios. What if I had invested $1375 with a reputable dealer on Walking Liberty half dollars in 1985? How might their value have grown?
Using historical trends from 2005, I compared various coins' values in 1985 and 2005. I calculated the annual compounded return rate for each, highlighting the top 20 performers.
Top Performers (1985 - 2005)
1. 1917-D Obv. MS-65: $3000 to $27500 (11.13%)
2. 1921-S F-12: $30 to $250 (10.62%)
3. 1919-D MS-65: $15000 to $115000 (10.19%)
4. ... (List continues with similar format for the top 20)
The best performer was the 1917-D Obverse in MS-65, beyond my budget then, but many circulated grades were affordable. If I’d invested wisely, I could've turned $1421 into over $7000, with an annual return of nearly 8%.
Lessons Learned
1. Invest in Proven Assets: Key and semi-key dates in coin series demonstrate consistent value growth fueled by collector demand.
2. Choose Reputable Dealers: Always transact with trusted individuals to avoid scams.
Justice Served
Around 1989, as I realized the scam, a federal investigation began. The Postal Inspection Service initiated a sting operation on the company. Numerous victims, including myself, provided evidence against them. In February 1991, agents raided the operation, and Carl, among others, was arrested.
Though I don’t know the final outcome, the arrest brought some satisfaction. My detailed records contributed to their exposure. As for those damaged coins, they remain tucked away, a reminder of a costly lesson.
Through this experience, I learned the importance of patience, due diligence, and carefully choosing whom to trust in investments.
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