CFTC, 30 state regulators announce consent order in opposition to Safeguard Metals for $68M fraud

The Commodity Futures Buying and selling Fee (CFTC) and 30 state securities regulatory companies which are members of the North American Securities Directors Affiliation (NASAA) right this moment introduced entry of a consent order within the U.S. District Court docket for the Central District of California in opposition to Safeguard Metals LLC and Jeffrey Ikahn (previously Jeffrey Santulan a/okay/a Jeffrey Hill) discovering them chargeable for working a nationwide $68 million fraudulent scheme, involving the sale of fraudulently overpriced silver cash that focused aged and retirement-aged individuals.

The order finds Safeguard Metals and Ikahn executed a nationwide fraud, from roughly October 2017 by at the least July 2021, by which the defendants solicited and obtained roughly $68 million in investor funds. The vast majority of the funds had been retirement financial savings solicited from roughly 450 individuals to buy valuable metals, primarily silver cash.

The order finds the defendants’ fraudulent scheme concerned deceiving prospects into buying valuable metals by false and deceptive statements, together with concerning the danger and security of their investments in conventional retirement accounts.

The defendants additionally deceived prospects into buying silver cash at costs that included grossly inflated value markups that vastly exceeded the value markups disclosed to prospects.These extreme markups triggered prospects an instantaneous and substantial loss on their funding.

Additionally, to disguise their fraudulent scheme, the defendants misled their prospects concerning the true worth of the silver cash they bought.

Along with discovering the defendants chargeable for fraud, the order enjoins them from future violations of the Commodity Trade Act (CEA) and CFTC laws, as charged; future violations of state legal guidelines and laws, as charged; and from buying and selling or registering with the CFTC and the states on this motion. The order additional reserves dedication of the quantities of restitution, disgorgement, and civil financial penalty for future choice by the courtroom or by consent.