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William J. Ulrich - Security Rare Coin and Bullion Corp Page 2 of 3
<br /> allowed him to remove the coins from the bank's vaults.
<br /> The complaint states that,although the coins at issue in these sales were estimated by the
<br /> bank to be worth upwards of several million dollars in 1987,the trust accounts received
<br /> only$266,000 from the sales.Ulrich aliegedly converted approximately$40Q000 of the
<br /> coin sale proceeds to his own use.Ulrich's free rein over the trust coins continued long
<br /> after it was clear to National Ciry Bank the value of the trust assets was being substantially
<br /> depleted,according to the complaint.
<br /> In a separate statement,concurring in part and dissenting in part,Commissioner Deborah
<br /> K.Owen stated,"The complaint in this matter pleads four causes of action.Based on the
<br /> evidence available,I concur in three counts,and dissent as to the count alleging
<br /> conspiracy.Because others may review the Commission's complaint for guidance in their
<br /> own efforts to comply with the law,1 would stress that the complaint should be read as a
<br /> whole....Certain ofthe individual actions alleged here might well be consistent with lawfiil
<br /> professional conduct,under different circumstances. However,given[he weight of the
<br /> evidence available. I was persuaded that a complaint with three counts should issue,based
<br /> on the totality of the alleged conduct."
<br /> MINNEAPOLIS LAW FIRM WILL TRANSFER$250,000 LIEN ON CLIENT'S HOUSE
<br /> AND PAY$35,000-03/93
<br /> The Minneapolis law firm of O'Connor&Hannan has agreed to transfer to the Federal
<br /> Trade Commission a$25Q000 lien it holds on a house once owned by a former client,and
<br /> to pay the FTC$35,000 in cash thereby avoiding a federal lawsuit in connection with its
<br /> representation of the former client,coin marketer William J.Ulrich.
<br /> The FTC also announced settlements with three coin dealers who will avoid federal
<br /> charges arising out of the FTCs claims that they conspired with,and aided and abetted
<br /> Ulrich to,defraud the agency out of collecting on an$11.2 million jadgmen[against
<br /> Ulrich.
<br /> The dollar amount reached under the settlement agreement with O'Connor&Hannan is
<br /> based on attorney's fees"Ulrich fraudulently paid O'Connor&Hannan to avoid his
<br /> anticipated obligations to the FTC,"according to the settlement document.O'Connor&
<br /> Hannan denies all claims and contentions asserted by the federal govemment.
<br /> Three other setdements also announced by the FTC today in connection with the Ulrich
<br /> case require coin dealers to turn over certain of their assets or make ceRain payments to the
<br /> Commission.The settlement agreements release the dealers from civil liabiliry arising from
<br /> the FTC's contentions against each of them that they conspired with and aided and abetted
<br /> Ulrich to defraud the FTC of its claims in the matter.The dealers deny the FTCs
<br /> contentions.The dealers are:
<br /> --Fred Lucas,a nationwide coin dealer whose principal place of business is in San Diego,
<br /> California,and who has assigned to the FTC his$94,380 security interest in Ulrich's house:
<br /> --Richard M1lelamed and his company.:�telamed Rare Coins,Inc.,a nationwide coin
<br /> dealer based in Costa Mesa,California,who have paid the FTC$10,000;and
<br /> --Wilbur'Vlontgomery Sims,a nationwide coin dealer based in Richmond,Virginia,who
<br /> has paid the FTC$8,000 in cash and has assigned the agency his$62,764 security interest
<br /> in the Ulrich house.
<br /> MINNEAPOLIS LAV1'FIR11 OF LARKI\,f10FFMA\TO PAY'$375,000 IN
<br /> CONNECTION WITH COI�-FRAI-D CASE-OS/94
<br /> The Minneapolis law firm of Larkin,Hoffman,Daly&Lindgren,Ltd.has agreed to pay
<br /> $375,000 over two years to set[le charges arising ou[of their representation of a former
<br /> client,eoin marketer William J. Ulrich.
<br /> The Federal Trade Commission obtained a judgment for$11,185,848 against Wiiliam J.
<br /> Ulrich,and his firm,Security Rare Coin and Bullion Corporation,in 1990.The judgment
<br /> remains largely unsatisfied."Che money was to be used for providing redress to Ulrich's
<br /> customers.
<br /> The judgment followed 1986 FTC charges that Ulrich and Security Rare Coin had been
<br /> selling coins for three to four times their true value while representing that the coins were
<br /> http://www.crimes-of-persuasion.com/players/ulrich_william.htm 12/5/2008
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