- The Commodity Futures Trading Commission (“CFTC”) and 30 state securities regulators jointly sued precious metals companies TMTE, Inc., d/b/a Metals.com, Chase Metals, LLC, Chase Metals, Inc., Barrick Capital, Inc., and related individuals (collectively, “Metals.com”) over allegations that they defrauded consumers by convincing them to use their retirement savings to buy precious metals through fraudulent marketing practices in violation of the federal Commodities Exchange Act and CFTC regulations, and state consumer protection and commodities trading laws.
- The U.S. District Court for the Northern District of Texas entered a temporary restraining order freezing Metals.com’s assets, appointing a receiver to take control of Metals.com, and permitting the CFTC and state regulators to inspect all relevant records.
- The complaint alleges that Metals.com sold precious metal bullions at prices that were 100% to 300% above market price by falsely claiming that the bullions were rare and much more valuable than their base melt price, and misrepresented precious metals as a safe and conservative investment virtually guaranteed not to lose its value, among other things.
- The complaint seeks declaratory and injunctive relief, disgorgement, restitution, civil penalties, the appointment of a permanent receiver, and attorneys’ costs and fees.