A federal court has ordered Safeguard Metals LLC and its owner, Jeffrey Ikahn, to pay approximately $25.6 million in restitution and an equal amount as a civil penalty after finding them responsible for running a fraudulent scheme that targeted elderly and retirement-aged individuals. The U.S. District Court for the Central District of California issued the final judgment following actions by South Carolina Attorney General Alan Wilson, the U.S. Commodity Futures Trading Commission (CFTC), and regulators from 29 other states.
The scheme took place between October 2017 and July 2021. In October 2023, a settlement was reached through a Consent Order that held the defendants liable for their nationwide activities. The order also barred them from future violations of both federal and state laws related to commodities trading.
Attorney General Alan Wilson commented on the decision: “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.”
Court documents show that Safeguard Metals solicited about $68 million—mostly from retirement savings—from at least 450 people under the pretense of investing in precious metals such as silver coins. The court found that customers were given false or misleading information, important facts were withheld, and they were overcharged for their purchases.
“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.
Wilson also acknowledged the CFTC and other state plaintiffs for their work on both the original consent order and the final judgment. States involved included 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 .
Investors are encouraged by Wilson’s office to carefully research any company offering investments in precious metals. Educational resources are available at www.informedinvestorSC.com. The Securities Division can be contacted at 803-734-9916 or via email; complaints can be submitted or more information found at the Attorney General’s Office website.
