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A 75-year-old man is seeking justice after he spent almost $300,000 of his retirement savings on collectible coins he was told were a good investment, then realized their minimal value only when trying to sell them to pay for his daughter’s wedding, a new nationwide class action lawsuit alleges.
Plaintiff Roger Mierzwa filed the class action lawsuit Tuesday in Minnesota federal court, alleging Westminster Mint, a Minnesota-based collectible coin company, has been operating a deceptive trade practice by encouraging people to spend hundreds of thousands of dollars on coins at hugely inflated prices.
“[Westminster Mint] has an abysmal track record of engaging in fraudulent and unconscionable business practices selling bullion coins,” the class action alleges.
“Defendant continues with its chicanery, to take advantage of unwary, and often elderly, investors, including Plaintiff, who have lost millions of dollars in the process.”
Mierzwa lives in Pottstown, Pennsylvania, and says he called Westminster Mint in September 2010 after seeing an ad from the company for a one-ounce Canadian Timber Wolf coin.
After speaking to representative Abel Nelson, Mierzwa bought the coin, and was then told it was time for him to consider graded coins for investment purposes “because the coins would only increase in value over time.”
The class action says Nelson indicated graded coins were appreciating at approximately 10 percent per year, and the coins Westminster was selling were the “best of the best.”
Over the next seven years, Mierzwa was solicited by Westminster Mint more than 50 times over the phone and through email. During these phone calls, the company allegedly got him to buy over 100 coins for more than $294,000.
Westminster Mint Overpriced Value of Coins, Class Action Claims
In one case, Mierzwa paid over $2,999 for a single coin. Mierzwa even took funds from his retirement savings after Westminster Mint told him he could realize a greater return on his investment in coins, rather than keeping the funds in his IRA, he alleges.
“‘Congratulations’ would become a repeated theme over the years in which Plaintiff understood he had acquired another valuable coin,” the class action says.
However, Mierzwa realized the coins’ true value when he tried to sell them to provide for his daughter’s wedding in 2017. Subsequent appraisals showed the coins are worth less than 20 percent of what he was asked to pay, the class action says.
Mierzwa went to the Office of the Minnesota Attorney General about the alleged fraudulent scheme, and is now taking class action on behalf of any United States resident who purchased one or more coins from either Westminster Mint, or any of its affiliates, successors, predecessors or assigns from 2010 until now.
He also seeks to represent a subclass of people aged 62 or over at the time they made the purchase. Minnesota law protects against deceptive acts specifically perpetrated against senior citizens aged 62 years old or older, and vulnerable adults.
The class action says Mierzwa learned that Westminster Mint incentivized its account executives to sell certain coins to its “least-educated customers” because the sale of those coins produced the highest profit margins.
The class action is suing for negligence and unjust enrichment, and for violations of Minnesota consumer protection laws and the Deceptive Acts Perpetrated Against Senior Citizens or Disabled Persons Act.
It is seeking certification of the class action, an enjoinment order, restitution, damages, a $10,000 penalty per violation committed against a Class member aged 62 or older, interest, fees and a jury trial.
Meanwhile, another Minnesota-based company, Allianz Life Insurance Company, has faced at least seven lawsuits over how the company marketed and sold deferred annuities to seniors. Read more about those lawsuits and settlements here.
What do you think about the alleged business practices of Westminster Mint? Let us know in the comments!
The plaintiff is represented by Bryan L. Bleichner, Jeffrey D. Bores and Christopher P. Renz of Chestnut Cambronne PA and Bruce W. Steckler and Austin P. Smith of Steckler Wayne Cochran PLLC.
The Westminster Mint Elderly Class Action Lawsuit is Roger Mierzwa et al., v. Westminster Mint, Inc., Case No. 0:21-cv-01157-SRN-DTS, in the U.S. District Court District of Minnesota.
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4 thoughts onWestminster Mint Preys on the Elderly, Sold One Man Nearly $300K in Coins, Class Action Alleges
Westminster mint have been preying on us. Over $20,000 spent total. One Gold set 4 pcs paid $6,000 told the same story how rare and that increases value. Found that the 1/4 ounce coin was fake after x-raying coin. After reporting this to them I was treated like a criminal. They said no way that could happen. My understanding is Westminster does not X-ray coins before they leave there hands. Overpaid for Platinum coin 1 oz. Maple leaf $7,000 cannot find book value anywhere. Been over 2 weeks no response from Westminster. They need to be stopped.
I to have been scammed by Westminster Mint Coins. I would like to be included in the class action lawsuits involved with Westminster Mint Coins.
So have I how do i proceed.
I also have been scammed by Westminster mint and others like New York mint etc Paid ten time the value for some silver coins and 3-4 times the value for some gold coins only discovering the true value lately when considering selling . Paid excessively for state quarter sets and incomplete sets of colorized quarters.. Bought many “certified coins” and was told lies about their growth, but cannot get anyone to offer me what I paid===Also had Gov Mint sell me inflated value coins snd New york sold me coins at 7-8 times their value I have all receipts and most of the coins i am referring to. I would love to share my list with anyone that could help recover some of these $, Thanks Ed