NASAA Members, CFTC Reach Settlement With Safeguard Metals in $68m Fraud Targeting Elderly Adults
Thirty state regulators and the
The consent order finds Safeguard Metals and Ikahn liable for executing a nationwide fraud involving the sale of fraudulently overpriced silver coins. The order also enjoins defendants from future violations of the Commodity Exchange Act and Regulations; future violations of state laws and regulations set forth in the complaint; and from trading or registering with the Commission and states as set forth in the complaint. The order further reserves determination of the amounts of restitution, disgorgement, and civil monetary penalty for future decision by the court or by consent.
"This action to stop a nationwide precious metals fraud is the result of a strong partnership between state and federal regulators who share a common goal of protecting investors. Unfortunately, this case is not an isolated incident, but rather a symptom of a widespread problem of investment scams targeting senior and vulnerable citizens," said
"Today's resolution of liability in this nationwide scheme demonstrates the CFTC's commitment to working with fellow regulators to protect investors and the integrity of markets," said
"This settlement is an important reminder of the role state securities regulators play in investor protection. We urge investors to contact their state securities regulator with questions about any investment opportunity or the person offering it for sale before investing in the product," said NASAA Enforcement Section Committee
The main findings of the order include:
* The defendants executed a nationwide fraud from approximately
* The defendants deceived customers into purchasing silver coins through false and misleading statements, including about the risk and safety of their investments in traditional retirement accounts.
* The defendants also deceived customers into purchasing silver coins at prices that included grossly inflated price markups that vastly exceeded the price markups disclosed to customers. As an example, customers paid an average price markup of 71 percent when the customer agreement stated that defendants would charge a maximum price markup of 23 percent on silver coins. These excessive markups caused customers an immediate and substantial loss on their investment.
* The defendants then continued to mislead their customers about the true value of the silver coins they had purchased to cover up their fraudulent scheme.
In a parallel, separate action, on
The CFTC and NASAA thanks and acknowledges the assistance of the
The following state regulatory agencies are CFTC's co-plaintiffs in this action, and the CFTC thanks them for their cooperation:
* * *
About NASAA:
Organized in 1919, the
* * *
Original text here: https://www.nasaa.org/69975/nasaa-members-cftc-reach-settlement-with-safeguard-metals-in-68m-fraud-targeting-elderly-adults/?qoid=current-headlines
U.S. Attorney for the District of Massachusetts: Psychiatrist Convicted of Billing Medicare and Private Insurance Companies for Services Never Rendered
FEMA Info Collection: Revision to National Flood Insurance Program Maps – Application Forms, Instructions for LOMRs, CLOMRs
Advisor News
- Benefit Costs Squeeze Schools, Driving Cuts, Tax Hikes And Difficult Tradeoffs
- Why client insurance needs could change even if their life doesn’t
- Most Gen Z investors think less than a year ahead when making financial decisions
- IRI pitches retirement agenda to Jeffries as democrats shape affordability platform
- Help child-free clients plan for their later years
More Advisor NewsAnnuity News
- Ty J. Young Wealth Management Acquires Senior Insurance Services, Expanding Its Growing Annuity Firm: Ty J. Young Wealth Management
- Guidance, bulletin or reg? NAIC debates form of annuity illustration update
- Nationwide adds mutual fund-linked strategy to New Heights Select FIA
- NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
- NAIC working group pressed to accelerate annuity illustration overhaul
More Annuity NewsHealth/Employee Benefits News
Life Insurance News