The U.S. District Court for the Central District of California recently entered a final judgment against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for operating a fraudulent scheme targeting elderly and retirement-aged individuals.
The court ordered approximately $25.6 million in restitution and an equal civil monetary penalty.
According to the court’s findings, the defendants solicited approximately $68 million from at least 450 persons from October 2017 through at least July 2021 as part of the scheme. Victims were told their money was being used to purchase precious metals, primarily silver coins.
The defendants systematically and widely disseminated false and misleading information, failed to communicate material facts to customers and fraudulently overcharged Safeguard Metals’ customers.
“This outcome is an important reminder that state securities regulators play a critical role in fighting investment fraud in all forms,” Amanda Senn, Alabama Securities Commission director and North American Securities Administrators Association (NASAA) Enforcement Section chairwoman, said. “We urge investors to contact their state securities regulator with questions about any investment opportunity or the person offering it for sale before investing. State securities regulators also provide resources to help individuals recognize red flags and avoid becoming victims.”
The Commodity Futures Trading Commission and 30 state regulators announced a settlement with the defendants in 2023.