Alleged $68 Million Silver-Tongued Investment Scheme Leads to Securities Ban

  • The CFTC and a group of 29 state actors, including the Maryland AG’s office and other state regulators, settled with Safeguard Metals, LLC and its owner to resolve allegations that the precious metals dealer violated the Commodity Exchange Act and state laws with a fraudulent scheme targeting the retirement accounts of elderly individuals.
  • The lawsuit alleged that Safeguard Metals used false statements and fear tactics to convince elderly and retirement-age persons that their traditional retirement accounts were at risk of loss and that they should buy the company’s allegedly fraudulently-priced precious metals as a safer alternative. According to the Maryland AG’s office, the victims of the alleged scheme suffered immediate losses to their retirement savings from the company’s undisclosed and extortionate fees.
  • Under the terms of the settlement, Safeguard Metals and its owner are prohibited from violating federal and state laws governing commodities fraud, securities, and investment adviser fraud. The owner is also barred by several states from participating in the commodities or securities industries and is subject to a federal commodity trading ban.