Don’t fall for precious metal schemes targeting seniors

Do research if you’re considering buying silver coins.

Precious metals dealer Safeguard Metals LLC and Jeffrey Ikahn have settled a lawsuit that alleged they engaged in a $68 million fraudulent scheme that targeted the seniors. 

Between October 2017 and July 2021, Safeguard and Ikahn deceived more than 450 customers nationwide into purchasing precious metals through false statements, including misrepresenting their credentials and the risk of customer investments in traditional retirement accounts, according to a consent order with the U.S. Commodity Futures Trading Commission and 30 state regulators.

“Safeguard Metals engaged in fraudulent and deceptive practices to solicit millions of dollars, primarily from elderly and retirement-aged individuals for profit,” said Charlie Clark, director of the Washington State Department of Financial Institutions. “As a result, customers suffered substantial losses on their retirement investments.”

The defendants charged an average markup of 51 to 71 percent on the precious metals, which was much more than the amounts the defendants represented in Safeguard Metals’ customer agreements as “operating margins” of 23 to 42 percent, the order said. Safeguard Metals steered more than 97 percent of its sales from mostly inexperienced investors into overpriced silver coins which had significantly higher markups than gold coins and generated for Safeguard about $66 million of the $68 million fraudulently solicited from customers.

Consumer restitution and civil money penalties will be determined in the next phase of the litigation. 

So, be sure to investigate any company carefully if you want to invest in precious metals. You don’t want to have substantial losses to your retirement investments.

Comments

[Jennifer]

Always risky to buy without research first.

[Rita]

Yes, indeed. Especially precious metals. Safeguard cheated people and they suffered substantial losses on their retirement investments. I'm glad they were caught, fined, and required to return money to consumers.