Elderly Investors Win $51.2M Judgment Against Precious Metals Firm

Maryland Secures $51 Million Judgment in Landmark Elderly Investment Fraud Case.A federal court has ordered a California-based company to pay over $51 million for defrauding elderly investors. The final judgment against Safeguard Metals LLC and its owner concludes a major multi-state prosecution. Maryland Attorney General Anthony G. Brown announced the victory, which provides restitution for victims who lost retirement savings.The case involved a nationwide scheme that aggressively targeted older Americans. According to the Attorney General, the defendants deceived retirees into moving their savings into overpriced precious metals.

Deceptive Tactics Uncovered in Multi-Year Scheme

The fraudulent operation ran from October 2017 through at least July 2021. Court documents show the company solicited roughly $68 million from investors. Most of these funds came directly from retirement accounts.Safeguard Metals and owner Jeffrey Ikahn systematically overcharged customers for silver coins. They also disseminated false and misleading information to potential clients. The scheme failed to communicate critical material facts to those making investments.

Multi-Agency Effort Brings Justice for Victims

This judgment results from a collaborative effort between 30 state regulators and federal agencies. The Maryland Attorney General’s Office worked alongside the Commodity Futures Trading Commission (CFTC). A parallel action was also pursued by the U.S. Securities and Exchange Commission (SEC).The coordinated action ensures the perpetrators are held fully accountable. It also sends a strong message to others who would target vulnerable populations. Any amounts paid in the separate SEC case will be credited against this latest $51.2 million judgment.

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This landmark judgment represents a significant victory in the ongoing fight against elderly financial fraud. The $51 million penalty and restitution order underscores a committed national effort to protect retirees from predatory schemes.

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What was the Safeguard Metals fraud scheme?

Safeguard Metals operated a nationwide precious metals investment scam. The company convinced elderly investors to transfer retirement funds into overpriced silver coins. The scheme ran for nearly four years, defrauding victims of millions.

How much money must the company pay?

The final judgment orders Safeguard Metals to pay $25.6 million in restitution to victims. An equal $25.6 million civil penalty brings the total financial judgment to over $51 million.

Who led the legal action against the company?

The Maryland Attorney General’s Securities Division initiated the case in partnership with the CFTC. They were joined by securities regulators from 30 different states in a coordinated prosecution.

How were investors specifically targeted?

The scheme focused on elderly and retirement-aged individuals. Salespeople aggressively solicited funds from retirement savings accounts. Investors were misled about the value and safety of the precious metals purchases.

What happens to the company and its owner now?

Jeffrey Ikahn and Safeguard Metals are permanently barred from violating commodity trading and state securities laws. The final judgment prevents them from engaging in similar fraudulent activities in the future.