U.S. Indicts 6 on Fraud Charges in Coin Dealings

Three principals and three employees of a Costa Mesa rare coin dealership were indicted by a federal grand jury Tuesday in connection with a boiler-room scheme that allegedly bilked about 500 investors out of more than $6 million.

From the summer of 1985 until at least last December, Marco Numismatics ran a telemarketing scheme that allegedly misrepresented the quality and value of ancient coins to investors throughout the United States, according to Thomas J. Umberg, an assistant U.S. attorney.

“There were about nine misrepresentations that we’ve alleged,” Umberg said. “The most important of them is that the investors could liquidate their coins upon demand because Marco would act as a broker and sell their coins to willing buyers. That is false.”

Umberg said that the company sold largely Greek and Roman coins, including the silver “denarius” and “double denarius” and the gold “aureus.”

Real Ancient Coins

“They were real ancient coins,” Umberg said. “But the coins they sold could be purchased on average at about 10% of what they were selling them for. They also purchased one type of coin--the Roman denarius--for $35 and would sell it for approximately $600.”

In addition, Umberg said, the company allegedly performed an unnecessary number of transactions on behalf of its clients in an effort to reap increased commissions.

The principals indicted Tuesday were Vincent L. Caterino, 58, of Riverside; Vincent’s 28-year-old son, James N. Caterino, also known as Jack Elder, of Costa Mesa, and Vincent’s brother, Nicholas Caterino, 49, of El Toro. The employees indicted were Brian Thompson, 27, of Orange; Patrick Zaremba, 28, of Norwalk, and Mark Colacchio, 29, of Corona. The indictments allege 23 counts of conspiracy to commit mail and wire fraud.

Umberg said that the defendants face a maximum of 110 years in prison and a $5.5-million fine if convicted on all counts. James Caterino, however, faces a maximum penalty of 115 years in prison and a $6-million fine, Umberg said, because he also used a fictitious name in his business dealings.

All of the indicted men but Vincent Caterino and Zaremba were arrested Tuesday. John Elekes, Vincent Caterino’s attorney, refused to comment on the indictment or his client’s whereabouts.