2 Morgan Dollars In Old Iga "Photo Cert" Folder/Slab

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Officials Charge 22 In Fraud Loss To Coin Buyers Pegged At $30 Million
July 15, 1988|By CECILIE DITLEV-SIMONSEN, Staff Writer
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The company bought coins at bulk prices of less than $20 each from Rare Coins of Georgia Inc., officials said. Another Georgia firm, Independent Grading Associates Inc., supplied false numismatic grading certificates, they said.

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PROGRAM TO COMPENSATE CONSUMERS IN GEORGIA-BASED COIN INVESTMENT SCHEME 08-93

The Federal Trade Commission today announced a refund program to compensate consumers who purchased rare coins whose investment quality and grades were allegedly overstated by two Atlanta-based firms. Under the disbursement plan, consumers will receive a pro rata portion of their original investments.

The refunds stem from a December 1987 FTC complaint charging Rare Coins of Georgia (RCG), its president, Sheldon Schultz, Independent Grading Associates, Inc. (IGA), and its president, Robert Cornely, with misrepresenting the value and grades of rare coins they sold to telemarketers nationwide.

According to the FTC complaint, RCG, IGA, and American Coin Grading Services (ACGS), an unincorporated entity operated by at least one of the defendants, issued certificates that overstated the quality of rare coins, and supplied those coins and certificates to telemarketers. Using the certificates to promote the coins, telemarketers then resold the coins to consumers as high-quality investments, the FTC alleged.