FOR IMMEDIATE RELEASE:  September 28, 1988


     COIN TELEMARKETING OFFICIALS AGREE NOT TO MISREPRESENT
            VALUE AND INVESTMENT POTENTIAL OF COINS,
                      SETTLING FTC CHARGES 


     The Federal Trade Commission today announced that John Pace
and Wayne Pedersen, two former officials of Schoolhouse Coins
Inc., a nationwide telemarketer of coins for investment, have
agreed not to misrepresent the value and profit potential of
coins or other investments they sell.  The agreements, which a
federal district court approved, are part of a final judgment and
permanent injunction each individual signed.

     In August 1987, the FTC filed a complaint charging Pace,
Pedersen, Schoolhouse and its successor, Numis Group Inc., and
others with making false claims about coins they sold.  Pace was
president and sole shareholder of Schoolhouse.  Pedersen was the
senior account executive directing marketing for Schoolhouse and
Numis.

     The defendants marketed coins to consumers through telephone
sales and written promotional materials.  According to FTC staff
estimates, the defendants' sales of coins totaled several million
dollars per year, with many customers investing between $10,000
and $20,000.  The companies have been out of business since the
court appointed a receiver for them on August 17, 1987.

     The Commission's complaint charged that the defendants
violated the FTC Act by falsely claiming that their coins were a
low-risk investment and that customers could reasonably expect to
resell coins at a substantial profit.     

     According to the FTC complaint, the defendants made written
claims about their coins' value such as, "You have embarked on an
unprecedented profit-making opportunity that has historically
demonstrated an overall high-yield, low-risk record."   The
defendants allegedly made verbal claims such as "Appreciation is
continual in coins sold by Schoolhouse because such coins are no
longer minted, and though supply is constant, demand increases." 
The complaint alleged these claims were false because the
defendants charged prices 10-20 times higher than the prices at
which the coins were generally traded.

                             (More)
Under the permanent injunctions, Pace, Pedersen, and any
person or company working with them to promote coins or other
investments are prohibited from:

     --   falsely representing the market value of coins or other
investments or the degree of risk in purchasing them;

     --   falsely telling customers that coins or other
investments they buy from them will increase substantially in
value within several months to five years;

     --   falsely claiming it is easy to resell the coins or that
the coins are a liquid investment;

     --   falsely claiming that they will repurchase the coins or
other investments;

     In addition, the injunctions prohibit Pace, Pedersen, and
others working with them from making any claims about the
potential profitability of coins or other investments, unless
they possess a reasonable basis for the claims and prominently
disclose that such an investment involves significant risk and
may well result in a substantial loss.
    
     In addition to the injunctions, as part of the settlements
the Commission has obtained $1 million judgments against Pace
and Pedersen individually.  Although it is not clear what assets
are currently available, any money collected will be used for
consumer refunds.

     Numis' and Schoolhouse's headquarters were in Costa Mesa,
Calif.  John Pace resides in Newport Beach, Calif., and Wayne
Pedersen resides in Escondido, Calif.

     The final judgments and orders for permanent injunction and
for settlement of claims were filed in the U.S. District Court
for the Central District of California.  These orders are for
settlement purposes only and do not constitute an admission by
the defendants that they violated the law. 

     Copies of the documents 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:  Dee Ellison, Office of Public Affairs, 
                202-326-2177

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

FTC File No. 872 3121          Civil Action No. 87 05415 KN

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