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Fraud

Maryland Attorney General Secures $51.2 Million in Restitution and Penalties Against Safeguard Metals and Jeffrey Ikahn

Strategic Insights

— 2 min read

The U.S. District Court for the Central District of California has entered a final judgment against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for operating a fraudulent scheme targeting elderly and retirement-aged individuals. The scheme, which took place from October 2017 through at least July 2021, resulted in the defendants soliciting approximately $68 million in retirement savings from at least 450 persons. The defendants were found to have systematically and widely disseminated false and misleading information, failed to communicate material facts to customers, and fraudulently overcharged customers for precious metals.

Key Takeaways:

  • The final judgment against Safeguard Metals LLC and Jeffrey Ikahn orders $25.6 million in restitution and an equal civil monetary penalty, totaling $51.2 million.
  • The defendants solicited approximately $68 million in retirement savings from at least 450 persons, with six Maryland victims losing approximately $350,000.
  • The court found that the defendants systematically and widely disseminated false and misleading information, failed to communicate material facts to customers, and fraudulently overcharged customers for precious metals.
  • The U.S. Securities and Exchange Commission filed a parallel action against the same defendants in February 2022.
  • Any amounts paid in the SEC matter will be offset against any amounts paid in the judgment announced today and vice versa.
  • The case was brought by the CFTC in partnership with state regulators from 30 states, including Maryland, Alabama, Arizona, Arkansas, and others.
  • Attorney General Brown thanked Securities Commissioner Melanie Lubin and Assistant Attorney General Max F. Brauer for their work on the case, as well as fellow state agencies, the CFTC, and the SEC for their assistance.

Statistics:

  • $51.2 million: total amount of restitution and penalties Ordered against Safeguard Metals LLC and Jeffrey Ikahn.
  • $68 million: approximate amount of retirement savings solicited by the defendants from at least 450 persons.
  • 6: number of Maryland victims who lost approximately $350,000.
  • 2017: start date of the fraudulent scheme.
  • 2021: end date of the fraudulent scheme (at least July).
  • 450: minimum number of persons solicited by the defendants for retirement savings.
  • 30: number of states participating in the partnership to bring the case against Safeguard Metals LLC and Jeffrey Ikahn.

Sources:

  • Maryland Attorney General: Final Judgment Against Safeguard Metals LLC and Jeffrey Ikahn Orders Restitution and Civil Monetary Penalty. (n.d.). Retrieved from "https://www.oag.state.md.us/Home/Press-Releases/2023/Final-Judgment-Against-Safeguard-Metals-LLC-and-Jeffrey-Ikahn-Orders-Restitution-and-Civil-Monetary-Penalty"
  • CFTC: Consent Order (n.d.). Retrieved from "https://www.cftc.gov/media/15611/consetorder12023.pdf"

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