Investors ‘suffered substantial losses’ in retirement funds, including one Idaho retiree whose coin purchase lost $241,385 in value in less than a day, the suit alleges.
Safeguard Metals, headquartered at Warner Center Towers in Woodland Hills, pictured here on Oct. 27, 2023, will settle a lawsuit from California and 29 other states accusing the company of scamming $68 million from the elderly. Woodland Hills-based Safeguard Metals has settled a lawsuit filed by California and 29 other states that accused the company of scamming the elderly into buying $68 million in overpriced silver coins and other precious metals.
“Safeguard Metals engaged in fraudulent and deceptive practices to solicit millions of dollars primarily from elderly and retirement-aged individuals for profit,” said Clothilde V. Hewlett, a, Safeguard and its owner, Jeffrey Ikahn, agreed to a permanent injunction prohibiting them from violating state and federal laws relating to commodities fraud, investment fraud and unlicensed investment advice.
The next phase of the litigation will determine how much the two parties will have to pay in customer restitution and civil penalties, according to the DFPI.in February 2022. The complaint alleged Safeguard charged an average markup of 71% on the precious metals, despite listing much smaller percentages for its “operating margin” in documentation provided to customers.
“However, these coins were transferred the same day to the investor’s Equity Trust account at a value of only $326,402.83,” the settlement states. “This represents a markup of $241,385.75 or 74%.”
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