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' , FTC CHARGES MINNESOTA LAW FIRM AND BANK WITH CONSPIRING TO DE... Page 1 of 2 News FTC CHARGES MINNESOTA LAW FIRM AND BANK WITH CONSPIRING TO DEFRAUD THE AGENCY OUT OF AN $11 MILLION JUDGMENT IN COIN FRAUD CASE � December 1992 The Federal Trade Commission has charged a Minnesota law firm and a Minneapolis bank in federal district court with fraudulently agreeing to prevent the agency from collecting on an $11.2 million federal court judgment. The FTC had won the judgment for consumer redress in a previous case against a rare-coin marketer. Named in today's case are Larkin, Hoffman, Daly & Lindgren, Ltd., of Bloomington; and the National City Bank, of Minneapolis. According to the FTC, the defendants helped the coin marketer fraudulently transfer several million dollars in rare coins into trusts for his three daughters and then convert a substantial portion of the coins back to his own use, and that they unlawfully and wrongfully acted to conceal assets belonging to the coin marketer and to put those assets beyond the reach of the FTC. In its complaint detailing the allegations, the FTC is seeking to void all illegal transfers of money made to the defendants, pursuant to federal and state law; compensatory damages against the defendants for aiding and abetting, conspiracy, and, as to National City Bank, breach of fiduciary duty; and, according to the complaint, an award for punitive damages not to exceed $11.2 million. This case stems from the FTCs 1986 case against Minneapolis coin dealer William J. Ulrich and his firm, Security Rare Coin& Bullion Corparation, a leading nationwide seller of coins for investment that was based in Minneapolis. The FTC filed its suit against Ulrich and his firm on Dec. 29, 1986, and sought consumer redress in excess of$20 million. According to the complaint filed late yesterday, FTC staff began investigating Ulrich in the summer of 1986, and came to believe that he was selling his coins for three to four times their true value while representing that they were low-risk, high- profit investments sold at or near their market value. During the fall of 1986 and the winter of 1987, the complaint states, Ulrich's attorneys and the bank knew that his "potential liability in the FTC matter could equal tens of millions of dollars." Yet, beginning in the fall of 1986 and continuing until May of last year, according to the complaint, Ulrich conspired with, and was aided and abetted by, the law firm and the bank "in an unlawful plan to remove, conceal, and protect his assets from the reach of the FTC." This allegedly was accomplished through a series of fraudulent conveyances and other unlawful transactions, which succeeded in making Ulrich virtually judgment proof, the FTC charged. http://coin-fraud-news.com/index.php?option=com_content&view=article&id=72:fto-char... 4/18/2013