Bullion Coin Seller Westminster Mint Takes Advantage of ‘Unwary,’ ‘Often Elderly’ Consumers, Class Action Alleges

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Westminster Mint, Inc. has taken advantage of “unwary, and often elderly,” investors by engaging in “fraudulent and unconscionable business practices” to sell bullion coins, a proposed class action alleges.

The 21-page lawsuit out of Minnesota claims the collectible coin company has an “abysmal track record” of tricking consumers, many of whom are of retirement age and living on a fixed income, into believing its coins are an investment when the products, in truth, are worth far less than what was paid for them.

The plaintiff, a 75-year-old Pottstown, Pennsylvania resident, says he was solicited by Westminster Mint more than 50 times by phone and through email between 2010 and 2017 and ultimately spent upwards of $294,000 on more than 100 coins before discovering later that his purported investment was worth several times less than what he paid.

Echoing a similar case filed against collectible coin seller GovMint.com, the 21-page suit alleges the defendant has violated several Minnesota statutes, including a law that protects senior citizens and vulnerable adults from deceptive trade practices.

According to the case, the plaintiff in September 2010 saw a Westminster Mint ad for a one-ounce Canadian Timber Wolf coin, after which the man dialed the number on the ad and spoke with one of the defendant’s representatives. After purchasing the coin, the plaintiff was told “it was time for him to consider graded coins for investment purposes” given they would increase in value over time, the suit says.

According to the lawsuit, the Westminster Mint representative indicated that graded coins, especially those with grading from companies such as the American Numismatic Association Certification Service (ANACS), would appreciate roughly 10 percent per year. The plaintiff says he later learned that the defendant’s account executives were incentivized to sell ANACS-graded coins to the “least-educated customers” because they produced the highest profit margins.

The lawsuit claims the plaintiff, over the next seven years, ultimately purchased over 100 coins for a total price of over $294,000 on the basis the defendant’s representations that the coins were an investment. Per the suit, Westminster Mint knew the plaintiff was using his IRA retirement savings to purchase the coins given the defendant told the man “he could realize a greater return” by investing in commemorative coins instead of keeping his funds in his IRA account.

According to the case, however, subsequent appraisals have shown the plaintiff’s coins to be worth less than 20 percent of what he paid for them.

The lawsuit alleges Westminster Mint never informed the plaintiff that the coins’ market value was worth substantially less than the price he was asked to pay, and that the market “would have to double and double again” for him to recoup the value of his purported investment. Moreover, the plaintiff was allegedly never told that he was purchasing coins for “novelty value” and would not realize any profit should be attempt to sell them.

Per the case, the plaintiff had “no reasonable way” to discover the coins’ true value until he attempted to sell them to finance his daughter’s wedding in October 2017. Though the plaintiff at that time reported the defendant’s “fraudulent” scheme to the Minnesota Attorney General and retained an attorney, Westminster Mint provided no relief, according to the suit.

The lawsuit looks to cover individuals in the U.S. who purchased one or more coins from Westminster Mint or any of its affiliates, successors, predecessors or assign at any time since 2010.

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