- The U.S. District Court of the Central District of California has entered a final judgment in a case brought by a bipartisan coalition of state AGs and the U.S. Commodity Futures Trading Commission (CFTC) against Safeguard Metals LLC and its owner (collectively, “Safeguard Metals”) for allegedly operating a fraudulent precious metals investment scheme that targeted elderly and retirement-aged investors.
- The judgment imposes approximately $25.6 million in restitution and an equal civil monetary penalty against Safeguard Metals, along with prejudgment interest, subject to offsets for amounts paid in a parallel SEC action. Safeguard Metals is also permanently barred from future violations of the Commodity Exchange Act and the various state consumer protection laws cited in the complaint.
- This judgment follows a 2023 settlement between Safeguard Metals, state regulators, and the CFTC that found the defendants liable for employing a nationwide fraud scheme involving deceptive sales tactics and misrepresentations about the safety and profitability of investing in precious metals.
- We previously covered the initiation of the lawsuit against Safeguard Metals, as well as the 2023 settlement.