Final judgment secures $51.2 million against precious metals firm for defrauding elderly investors, including Marylanders

A major investment fraud operation has been shut down. Maryland Attorney General Anthony G. Brown confirmed a final judgment against Safeguard Metals LLC and its owner. The court ordered them to pay over $51 million for defrauding elderly investors.

The scheme targeted retirement-aged individuals nationwide. It involved deceptive sales of precious metals. Authorities say the company systematically overcharged customers for years.

Deceptive Tactics Uncovered in Multi-State Probe

The fraudulent activity ran from October 2017 through July 2021. Safeguard Metals solicited approximately $68 million from victims. Most of the money came from retirement savings.

According to Reuters, the defendants sold primarily silver coins. They used false and misleading information to make sales. The company failed to disclose material facts to its customers.

Six Maryland victims lost about $350,000. The nationwide impact was much larger. The court found the defendants liable for widespread fraud.

Multi-Agency Effort Secures Landmark Judgment

This case represents a significant collaborative victory. The Maryland Attorney General’s Office worked with the CFTC and 30 state regulators. This partnership was crucial for building a strong case.

The judgment includes $25.6 million in restitution. An equal $25.6 million civil penalty brings the total to $51.2 million. The U.S. Securities and Exchange Commission filed a parallel action.

Any amounts paid in the SEC matter will offset this judgment. The consent order permanently bars the defendants from future violations. This prevents similar fraud against other investors.

This $51 million judgment sends a powerful message to would-be fraudsters targeting vulnerable populations. The successful prosecution of this investment fraud scheme demonstrates strengthened regulatory cooperation.

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Thought you’d like to know-

What was the Safeguard Metals fraud scheme?

Safeguard Metals operated a nationwide precious metals investment scheme. The company targeted elderly individuals and their retirement savings. They systematically overcharged customers while providing misleading information.

How much money must the defendants pay?

The court ordered $25.6 million in restitution to victims. An additional $25.6 million civil penalty brings the total to $51.2 million. This judgment represents one of the larger recent penalties for investment fraud.

Who investigated this case?

The Maryland Attorney General’s Securities Division led the investigation. They partnered with the Commodity Futures Trading Commission and 30 state regulators. The SEC also filed a parallel action against the same defendants.

What protections are now in place?

The defendants are permanently barred from violating commodity trading laws. They cannot engage in similar fraudulent activities in the future. Regulatory agencies continue monitoring for such schemes.

How many states were affected?

The scheme operated nationwide with victims across multiple states. Thirty state regulators participated in the legal action. Maryland identified six specific victims within its borders.