FOR IMMEDIATE RELEASE:  July 3, 1989


        FTC CHARGES NATIONWIDE COIN DEALER MISREPRESENTED
            VALUE AND INVESTMENT POTENTIAL OF COINS;
              ASKS COURT FOR INJUNCTION AND REFUNDS



     The Federal Trade Commission has charged Certified Rare
Coin Galleries Inc. (CRCG), a nationwide seller of coins for
investment and Elliot Krasnow, its owner, with misrepresenting
the value and investment potential of its coins.

     At the request of the FTC, a federal court entered a
temporary restraining order prohibiting further violations of the
sort described in the FTC's complaint, froze defendants' assets,
and appointed a temporary receiver against CRCG.  

     According to the Commission's complaint, CRCG claimed that
an investment in coins bought from them is a safe, long-term
investment; that consumers can reasonably expect their coins to
increase substantially in value over the purchase price in three
to five years; and that CRCG's coins are sold at or close to the
prices at which the coins can be liquidated through a market
sale.  In fact, the Commission claimed, an investment in
defendants' coins is not a safe, long-term investment; there is
a substantial probability that consumers will lose money rather
than make a substantial profit over the purchase price if they
resell after three to five years; and defendants' coins are not
sold at or close to the prices at which the coins can be
liquidated through a market sale.  Instead, defendants routinely
sell coins at prices well in excess of 100 percent more than
either the coins' wholesale market prices or the prices at which,
assuming no change in the values of the coins, the consumer could
expect to liquidate the coins. 

     The FTC asked the U.S. District Court for the Southern
District of Florida to also issue preliminary and permanent
injunctions forbidding such alleged misrepresentations and to
order the defendants to pay consumer redress.


                             (More)

     CRCG is based in N. Bay Village, Fla.  The Commission wants
to acknowledge the efforts of the North Bay Village Police
Department for assisting the court-appointed receiver in his
assuming control over the corporate defendant.

     NOTE:  The Commission files a complaint when it has "reason
to believe" that the law has been or is being violated, and it
appears to the Commission that a proceeding is in the public
interest.  The complaint is not a finding or ruling that the
defendants have actually violated the law.  The case will be
decided by the court.

     Copies of the complaint will be available shortly from the
FTC's Public Reference Branch, Room 130, 6th St. and
Pennsylvania Ave. N.W., Washington, D.C.  20580; 202-326-2222;
TTY 202-326-2502.

                              # # #

MEDIA CONTACT:      Brenda A. Mack, Office of Public Affairs,
                    202-326-2182

STAFF CONTACT:      Michael McCarey, Bureau of Consumer
                    Protection, 202-326-3303


(FTC File No. 882-3208)

(Civil Action No. 89-1307CIV-RYSKAMP)

(crcg)