Justice Preserved For Elderly Investors In SEC Case Against Silver and Gold Coin Dealer

During times of economic unrest, elderly investors are particularly vulnerable to swindlers who prey on investors’ mistrust of volatile stocks for the certainty of precious metals.  After all, securities have a history of devastating retirement funds whereas gold and silver have buoyed their value since ancient times.  On February 1, 2022, the United States Securities and Exchange Commission (the “SEC”) filed a complaint, in the Central District of California, against Safeguard Metals LLC and its owner alleging that defendants violated anti-fraud laws.  See Securities and Exchange Commission v. Safeguard Metals LLC et al, Docket No. 2:22-cv-00693 (C.D. Cal. Feb 01, 2022), Court Docket.  The complaint alleged that from December 2017 through at least July 2021, using fearmongering tactics, defendants persuaded retirement and near-retirement aged investors to sell their existing securities and use the proceeds to purchase silver and gold coins that defendants would handle on behalf of investors.  Unbeknownst to these investors, defendants were up-charging the precious metals an average markup of approximately 64% while misleading the investors that the markup would only be 4% - 33% throughout the period to cover operating margins.  Defendants gained $26 million from the higher-than-disclosed markups.  On May 4, 2022, defendants filed a motion to dismiss, which was denied on July 18, 2022.  Without admitting or denying liability, defendants consented to judgment, and on May 2, 2025, they were ordered to pay back the amount of the alleged disgorgement, civil penalties, and the prejudgment interest, amounting to approximately $57.4 million.