Family members of an elderly woman have sued U.S. Money Reserve, Inc. alleging fraudulent sales practices. Arlene M. Kagan decided to sue the company when she discovered that her mother had purchased more than a quarter of a million dollars’ worth of commemorative coins from U.S. Money Reserve in the months prior to her death at age 94.
According to the Complaint, the plaintiff’s mother, Florence Kaplan, was fraudulently induced to purchase overpriced coins from U.S. Money Reserve during the final months of her life. After Mrs. Kaplan died in December 2017, her daughter discovered that the coins were only worth approximately a quarter of the prices charged by U.S. Money Reserve. The lawsuit alleges that U.S. Money Reserve, through its president, salespeople, and marketing materials, made false, material, positive representations to Mrs. Kaplan grossly exaggerating the value of the coins.
“While there are many reputable dealers in gold, this market’s desirability and investment potential make it vulnerable to fraudulent business practices,” according to Texas Attorney General Ken Paxton’s website.
Court documents state that U.S. Money Reserve was previously cited for deceptive trade practices in 2010 by the Texas Attorney General, who discovered that the company had “priced its proof and commemorative coins higher than the retail market value for those coins” and that “a higher percentage of the complaints come from older consumers.”
“Our client’s mother was 94 years old, and the phone records show the company was calling her sometimes as often as 4 or 5 times a day,” said Bruce Steckler, founding partner of Steckler Wayne Cherry & Love. “Over an 8-month period, she bought 59 of their coins or coin sets, paying much more than what they were actually worth.”
The lawsuit was filed by Steckler Wayne Cherry & Love on behalf of Ms. Kagan on July 18, 2018 in the United States District Court for the Western District of Texas.
Steckler Wayne Cherry & Love is a Dallas-based law firm that combines nearly a hundred years’ worth of experience trying over seventy-five cases to juries, judges and arbitrators (and preparing hundreds more that settled) in every field of law on behalf of both plaintiffs and defendants.
Court: U.S. District Court for the Western District of Texas, Austin Division
Case Number: 1:18-cv-00577-LY