Home Page Lawsuits Filed Lawsuit: Larry Bates, First American Monetary Consultants Face Fraud Class Action
Larry Bates, First American Monetary Consultants Face Fraud Class Action
Jackson, TN: A federal consumer fraud class action lawsuit has been filed against Larry Bates, his company First American Monetary Consultants and several associates, including radio stations, alleging they defraud people, specifically Christians and the elderly, by persuading them to purchase silver and gold coins, and then withhold delivery of the coins.
The lawsuit, filed by Plaintiffs Damian Orlowski of Chicago and Lynn Cechin of Texas, and others similarly situated, states that Bates "targets devout, Christian believers, elderly individuals, and widow/widowers with significant life savings, all who are seeking advice and help from a trusted Christian adviser and/or a Christian financial company."
Named defendants in the lawsuit are Larry Bates, a Democrat who served in the Tennessee General Assembly from 1971 to 1976, dba Radio Information Network, INC/IRN USA Radio News; Information Radio Network/IRN USA Radio News; Information Radio Network Inc.; and Barry Denison, a "senior staff economist" for Bates's First American Monetary Consultants (FAMC), "who travels regularly, advertising for FAMC and speaking on the economy, the threat of Islam, and the question of Israel and the church."
Among the allegatations stated in the lawsuit are claims that Bates promised to move million of dollars in precious metals quickly on their investors' behalf, but after receiving the money delivery of the coins would be delayed by as much as a year. In some cases, orders were allegedly only partially filled.
The lawsuit includes at least 26 other people who allegedly suffered as a result of the defendants actions. The plaintiffs claim that Bates uses his radio show, "News and Views," broadcast via Information Radio Network/IRN USA Radio News, to solicit for a wide range of products, including his books, an FAMC publication called "Monetary and Economic Review," DVDs and videos, and for himself, for personal appearances and speaking engagement at conferences. And, "Multiple methods of media, including, but not limited to, radio, television, books, newsletters, toll free numbers, email, direct mail, and personal solicitation at churches and conferences across the nation are used by Bates and Denison, and other agents of FAMC, Inc. to advertise FAMC Inc., to solicit money from unsuspecting individuals in order to purchase gold, silver and precious metals through defendants ...," the lawsuit alleges.
Orlowski and Cechin are seeking $80 million in actual, treble and punitive damages and injunctive relief on claims of breach of contract, unjust enrichment, fraud, tortious misrepresentation, wrongful trover and conversion, breach of trust and fiduciary duty, tortious conspiracy, and mail and wire fraud.
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Last updated on Jan-2-12
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I purchased approx. 100,000.00 worth of gold and silver coins around 1992-1995 after hearing his claims to regarding the coming collapse and it being a safe haven. He claimed gold would be the only form of currency worth anything at the collapse and that it was assured to be a safe investment which would make you money. He said the collapse would result in things selling for 50 to 60 cents on the dollar and that money as we know it is just a promissory note worth nothing in reality so when the collapse happened we would be able to buy things with the gold. We did finally get our gold and silver coins but when after holding onto them for three years nothing happened and we needed our cash and no one wanted to take gold coins we asked him if we could sell them back. He said yes probably because he has someone else on the line that he had talked into needing them. He had told us originally gold would also go up in value and when we cashed them in we would make a substantial amount. After three years he said our investment was worth no more than we paid him. We complained and reminded him of his word to us and told him we could have at least made something putting it into a passbook savings and more if in a CD but he stuck to his claim we would get nothing more than we paid him three years prior. Knowing we needed our money back and there was nothing we could do we sold them back to him but he put us off for almost three months with us calling consistently until he finally met us to sell them back and give us our money. Terrible experience we didn't lose our original investment fortunately but we did lose time and interest. Very misleading. I think it was a musical chair shell game. In that, he always has so many coins which he talked someone into buying saying they would make money than after a few years when the person realized they wouldn't they sold them back and he took the money from the new buyers to pay the sellers with him always keeping the profit that's why he put us off in our selling for three months till I suspect he had a buyer and if there were no sellers the buyers didn't get the coins. There were big losers and little losers but everyone but him lost something. Sad! The dishonesty!
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