Home · Entertainment · Oct 20 archive
Erik von Detten Sued for Elder Abuse Over $2.1M Gold Investment
Confirmed
In Short: The lawsuit accuses the defendants of financial elder abuse, fraud, breach of fiduciary duty, constructive fraud, and conversion.
Former Disney star Erik von Detten is facing a lawsuit from an elderly California couple who allege he convinced them to invest more than $2.1 million of their retirement savings in overpriced gold coins. Sheila Greenberg, 85, and her husband, Norman Greenberg, 97, filed the lawsuit against von Detten and his former employer, Rosland Capital, in Los Angeles County Superior Court on May 11.
In October 2020, the Greenbergs placed an order for 1,328 Lady Liberty gold coins and 1,499 more in November 2020, paying 60 percent above market value. They claim they paid the equivalent of $3,009.56 per ounce when the spot price of gold was approximately $1,903 per ounce.
The lawsuit alleges that von Detten convinced the couple to invest an additional $114,000 in gold through their family trust after they depleted their retirement funds. The Greenbergs claim they lost more than $367,000 in value almost immediately after the first transaction.
Sheila Greenberg said she turned to AI to look into Rosland's business practices after realizing they had been overcharged. The couple is seeking at least $900,000 in compensatory damages, double damages, punitive damages, prejudgment interest, attorneys’ fees, and costs.
The lawsuit accuses the defendants of financial elder abuse, fraud, breach of fiduciary duty, constructive fraud, and conversion. The Greenbergs claim that von Detten took advantage of their lack of knowledge about gold investments and their fears about financial security.
The couple said they were initially drawn to Rosland Capital after seeing several TV commercials that created concern for the safety of their wealth. They believed von Detten was taking care of them and that the price they paid was fair.
The lawsuit argues that von Detten had a fiduciary responsibility as their advisor but instead used his authority to sell gold at unconscionable prices. The couple claims they did not realize they had been overcharged until 2025, when they began looking into the value of their holdings.
Rosland Capital's lawyers stated that they have worked with the Creditors Committee to create a liquidating trust which will have the power to investigate the financial history of the company to provide answers to the claims of the Greenbergs and other investors.
What's confirmed
- "designed in large part to appeal to senior citizens through their television and internet advertising, direct mail brochures, and high-pressure boiler-room type sales practices."
What's still developing
- The 'Outnumbered' panel discusses Kansas City Chiefs star Travis Kelce being defrauded in an alleged $35 million Ponzi scheme.
- Once put in touch with von Detten, one of the company's top advisors, the couple disclosed that their combined traditional IRA accounts contained more than $2 million.
- "They believed that, however valued, Von Detten was taking care of them and the price they paid was a fair price for what they bought and the gold they purchased was worth the money they spent. Afterall, this was an IRA rollover. An investment intended to protect their hard-earned wealth for retirement."
- A short time later, von Detten made a second purchase of another approximately $1 million in coins.
- The Greenbergs claim the company appeals to senior citizens and attempts to exploit their fears and vulnerability about financial issues by appealing to the stability of gold and other precious metals.
- The couple claims they eventually learned the coins they purchased weren’t worth what they spent and had been marked up with a huge premium.
- According to the filing, Von Detten—who played superficial heartthrob Josh Bryant in the Anne Hathaway -led 2001 film—was assigned to work with Sheila and Greenberg after they asked to speak with the top advisor.
- The filing argued that von Detton and Rosland Capital "took, secreted, appropriated, obtained or retained an unconscionable mark-up over the fair value of no less than $900,000 for a wrongful use" despite knowing it would "likely be harmful" to the couple.
- In the lawsuit, the couple said that von Detten knew they had "never invested in gold or other precious metals and really knew very little about these things," but that they wanted to take the leap because they believed it was a safe alternative.
- "Von Detten acknowledged that he understood their goals and their lack of knowledge and that he possessed sufficient experience and expertise and could help," the lawsuit alleged.
- News in a statement that they "cannot comment directly on the lawsuit" but did share insight into the company's next steps for Greenberg and other investors.