Jonathan S. Goldstein and Shawn M. Rodgers, attorneys from Goldstein Law Partners, helped the victims of a notorious fraudster receive justice and restitution after nearly two decades of uncertainty. In January, their client, Heritage Numismatic Auctions, sold a collection of rare and ancient coins at auction for more than $2.7 million. The proceeds from the Heritage auction will benefit the receivership estate responsible for compensating the individuals swindled by Martin A. Armstrong, who pled guilty in the mid-2000s on criminal charges related to securities fraud.

Two years ago, Armstrong claimed ownership of this collection and accused Heritage of theft. Once it became apparent that Armstrong’s victims were the true owners of these rare and ancient coins, Goldstein, Rodgers and Heritage worked cooperatively with the receivership estate to ensure that Armstrong was stopped and held accountable for his deceit.

After protracted litigation in the Eastern District of Pennsylvania and the Southern District of New York, two federal judges dismissed Armstrong’s baseless allegations and found that no credible evidence existed to support his ownership claims. Both courts concluded that the receivership estate owned the collection.

Armstrong hid much of the proceeds from his fraud in antiquities and other untraceable assets. Since 2000, Armstrong failed to turnover most of these assets, including over $12 million in rare coins. Armstrong spent nearly seven years in federal prison for civil contempt for this refusal, and another five years in prison after pleading guilty. The collection sold by Heritage this year represents some of these missing coins. Although many antiquities used by Armstrong to hide his illicit profits remain unaccounted, the auction held this past January is the first relief to Armstrong’s victims in nearly a decade.

Goldstein and Rodgers sought sanctions against Armstrong and his attorney, Thomas V. Sjoblom, for their actions. They revealed how Armstrong and Sjoblom attempted to use the court system to advance claims they knew to be false, in an effort to force a settlement where Armstrong gained possession of the coins. Coins that did not belong to him, and that should have been sold long ago to mitigate the harm he caused.

In the Eastern District of Pennsylvania, Judge Bartle declared Armstrong and Sjoblom acted in bad faith, and awarded counsel fees to Heritage. “[T]his is that exceptional case where imposition of counsel fees and costs is warranted[,]” the court held.

The “entire course of conduct against Heritage from the start,” including Armstrong’s false accusations of theft, “w[ere] an abuse of judicial process[.]” The court found that both Armstrong and Sjoblom “knew or should have known that Armstrong did not own any of the coins in issue.” “Armstrong … joined Heritage as a third-party defendant, opposed Heritage’s withdrawal from the case, and subjected it to continued and unnecessary expense for no other purpose than to harass and coerce a settlement[.]” Heritage settled with Armstrong and Sjoblom for an undisclosed amount following Judge Bartle’s order.

The documents related to this case are here:
Order | Order Awarding Fees | Memorandum Opinion