DOJ, DFI: Final judgement against precious metals firm targeting the elderly announced | News

The Brief:

• Wisconsin DOJ and Department of Financial Institutions announced a $25.6 million restitution from a fraudulent precious metals firm.

• The scheme targeted the elderly, soliciting about $68 million from at least 450 victims.

• Thirty state regulators and the CFTC were involved in the settlement with Safeguard Metals LLC and owner Jeffrey Ikahn.

MADISON, Wis. — The Wisconsin Department of Justice and the Wisconsin Department of Financial Institutions announced Friday that U.S. District Court for the Central District of California imposed approximately $25.6 million in restitution, along with an equal civil monetary penalty against a precious metals firm for operating a fraudulent scheme that targeted the elderly.

According to the DOJ, the final judgement stemmed from the fraudulent scheme conducted by the defendants from October 2017 through at least July 2021. Thirty state regulators and the Commodity Futures Trading Commission on Oct. 25, 2023 announced a settlement with the defendants. Safeguard Metals LLC. and owner Jeffrey Ikahn, were found liable for employing a nationwide scheme.

“Defrauding others is shameful,” said Wisconsin Attorney General Kaul. “Thank you to those who worked to obtain this resolution.”

Prosecutors say that the defendants solicited about $68 million from at least 450 people to purchase precious metals, mostly consisting of silver coins. Court findings and the consent order also revealed that the metal company used false and misleading information and failed to communicate facts to customers, ultimately overcharging Safeguard Metals’ customers for the precious metals they sold.

In February 2022, the U.S. Securities and Exchange Commission filed a parallel action against the defendants. The court entered partial judgments by consent a year later. The court ordered Safeguard and Ikahn to pay roughly $25.6 million in disgorgement, an equal civil monetary penalty, and pre-judgment interest this May.

“Any amounts paid in the SEC matter will be offset against any amounts paid in the judgment announced [Friday] and vice versa,” the DOJ stated.

Joining Wisconsin and the CFTC in this case were the state regulators from Alabama, Arizona, Arkansas, California, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Mississippi, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Vermont, and Washington.

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