California – Attorney General Alan Wilson announced that a federal court has made a final decision against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for running a huge fraudulent operation that targeted older and retirement-aged investors. The U.S. District Court for the Central District of California said that the defendants must pay about $25.6 million in restitution and the same amount in civil monetary penalties.
Safeguard Metals and Ikahn ran a scam from October 2017 to July 2021 that led to this case. During that time, the defendants asked more than 450 people from across the country for about $68 million, most of which came from the savings of retirees. Investors were tricked into buying precious metals, mostly silver coins, by false and misleading statements about their worth and safety.
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The court found that the corporation gave out incorrect information, didn’t provide clients important details, and charged them too much for their transactions. The court found that these activities together cheated investors and broke several federal and state securities statutes.
The final decision comes after a consent order was issued in October 2023. At that time, South Carolina joined the U.S. Commodity Futures Trading Commission (CFTC) and 29 other state authorities in a cooperative lawsuit against the corporation. That order made it so that the defendants could never break the Commodity Exchange Act or any other state laws again.
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Attorney General Wilson praised the ruling as a victory for investor protection, particularly for those in vulnerable populations.
“The court’s final judgment in this matter provides meaningful restitution to investors harmed by this fraudulent action, and it reinforces that the South Carolina Attorney General, Securities Division, will take decisive action to protect investors, especially those in vulnerable communities,” said Attorney General Alan Wilson.
Wilson also acknowledged the collaboration among state and federal agencies, noting the critical role of state securities regulators in exposing and dismantling complex investment scams. States involved in the joint case included Alabama, Arizona, Florida, Michigan, Missouri, Oregon, and others nationwide.
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The Attorney General urged South Carolinians considering investments in precious metals to exercise caution and research companies thoroughly before committing their money. Educational materials and complaint forms are available on the Attorney General’s website, www.informedinvestorSC.com, or through the Securities Division at [email protected].
