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Fraud

Attorney General Alan Wilson Announces Final Judgment Against Precious Metals Firm That Defrauded Elderly Adults

Strategic Insights

— 1 min read

Attorney General Alan Wilson recently announced that the U.S. District Court for the Central District of California has entered a final judgment imposing approximately $25.6 million in restitution and an equal civil monetary penalty against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for operating a fraudulent scheme targeting elderly and retirement-aged individuals. The judgment stems from a fraudulent scheme conducted by the defendants from October 2017 through at least July 2021.

Key Takeaways:

  • The defendants, Safeguard Metals LLC and its owner, Jeffrey Ikahn, were found liable for operating a nationwide scheme targeting elderly and retirement-aged individuals.
  • The scheme involved soliciting approximately $68 million, the majority of which was retirement savings, from at least 450 people for the purpose of purchasing precious metals, primarily consisting of silver coins.
  • The defendants systematically and widely disseminated false and misleading information; failed to communicate material facts to customers; and fraudulently overcharged customers for the precious metals that Safeguard Metals sold.
  • The court's final judgment imposes approximately $25.6 million in restitution and an equal civil monetary penalty on the defendants.
  • The case was brought by the CFTC in partnership with state regulators from 29 other states, and Attorney General Wilson encourages investors interested in precious metals to be vigilant and to investigate any precious metals company's claims about proposed investments in precious metals.
  • The South Carolina Office of the Attorney General, Securities Division, provides investor education and outreach resources on its website at www.informedinvestorSC.com.

Statistics:

  • Approximately $68 million was solicited from at least 450 people for the purpose of purchasing precious metals.
  • The majority of the solicited funds were retirement savings.
  • The defendants' scheme was conducted from October 2017 through at least July 2021.
  • Around $25.6 million in restitution and an equal civil monetary penalty are being imposed on the defendants.

Sources:

  • South Carolina Attorney General's Office, https://www.scag.gov/about-the-office/news/attorney-general-alan-wilson-announces-final-judgment-against-precious-metals-firm-that-defrauded-elderly-adults/
  • U.S. Commodity Futures Trading Commission (CFTC), [Name of relevant document or website]

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