Attorney General Alan Wilson announces final judgment against precious metals firm that defrauded elderly adults

(COLUMBIA, S.C.) – Attorney General Alan Wilson announced today that the U.S. District Court for the Central District of California has entered a final judgment imposing approximately $25.6 million in restitution and an equal civil monetary penalty against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for operating a fraudulent scheme targeting elderly and retirement-aged individuals. The judgment stems from a fraudulent scheme conducted by the defendants from October 2017 through at least July 2021. Previously, on October 25, 2023, South Carolina, in partnership with the U.S. Commodity Futures Trading Commission (CFTC) and 29 other state regulators, announced a settlement with the defendants through a Consent Order that found the defendants liable for employing a nationwide scheme. The consent order also enjoined the defendants from future violations of the Commodity Exchange Act, as well as future violations of state laws and regulations set forth in the complaint.

“The court’s final judgment in this matter provides meaningful restitution to investors harmed by this fraudulent action, and it reinforces that the South Carolina Attorney General, Securities Division, will take decisive action to protect investors, especially those in vulnerable communities,” said Attorney General Alan Wilson.

According to the court’s findings, the defendants solicited approximately $68 million, the majority of which was retirement savings, from at least 450 people for the purpose of purchasing precious metals, primarily consisting of silver coins. The court found that defendants systematically and widely disseminated false and misleading information; failed to communicate material facts to customers; and fraudulently overcharged customers for the precious metals that Safeguard Metals sold.

“This outcome is an important reminder that state securities regulators play a critical role in fighting investment fraud in all forms,” said Attorney General Wilson.

Attorney General Wilson would like to thank the CFTC and the other state plaintiffs for their dedication and hard work in securing the original Consent Order and the current Final Judgment. The case was brought by the CFTC in partnership with state regulators from Alabama, Arizona, Arkansas, California, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Mississippi, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, and Wisconsin.

Attorney General Wilson encourages investors interested in precious metals to be vigilant and to investigate any precious metals company’s claims about proposed investments in precious metals. The Attorney General’s Office provides investor education and outreach resources on its website at www.informedinvestorSC.com. 

The South Carolina Office of the Attorney General, Securities Division, can be reached by calling 803-734-9916 or by emailing [email protected]. Investors can submit a complaint or learn more about the Securities Division by visiting the Attorney General’s Office website at https://www.scag.gov/inside-the-office/legal-services-division/securities/.