A federal court has ordered Safeguard Metals LLC and its owner, Jeffrey Ikahn, to pay about $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 judgment was issued by the U.S. District Court for the Central District of California.
The case stems from actions taken between October 2017 and July 2021, during which Safeguard Metals solicited around $68 million—mostly from retirement savings—from at least 450 people for investments in precious metals, primarily silver coins. According to the court, the company spread false and misleading information, withheld important facts from customers, and overcharged them for precious metals.
Previously, on October 25, 2023, South Carolina joined with the U.S. Commodity Futures Trading Commission (CFTC) and regulators from 29 other states in reaching a settlement with Safeguard Metals through a Consent Order. This order found the defendants liable for operating a nationwide scheme and barred them from future violations of both federal commodity laws and state regulations.
“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.
“This outcome is an important reminder that state securities regulators play a critical role in fighting investment fraud in all forms,” added Wilson.
Attorney General Wilson acknowledged the work of the CFTC and state partners who contributed to securing both the original Consent Order and this final judgment. State regulators involved came 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,Uta h,Vermont ,Washington,and Wisconsin .
Wilson advised those considering investments in precious metals to carefully research companies’ claims before proceeding. Investor education resources are available at www.informedinvestorSC.com.
The South Carolina Office of the Attorney General’s Securities Division can be reached at 803-734-9916 or by email at [email protected]. Complaints can also be submitted online via the office’s website.
