Los Angeles, CA – October 25, 2023 – Jeffrey Ikahn, formerly known as Jeffrey Santulan and Jeffrey Hill, has been found liable for a nationwide $68 million fraud scheme targeting elderly and retirement-aged individuals, according to a consent order entered in the U.S. District Court for the Central District of California. The Commodity Futures Trading Commission (CFTC) and 30 state securities regulatory agencies brought the action against Ikahn and Safeguard Metals LLC.
The scheme, which ran from approximately October 2017 through July 2021, involved the sale of fraudulently overpriced silver coins. Investigators found that Ikahn and Safeguard Metals solicited approximately $68 million in investor funds, the majority of which came from the retirement savings of around 450 people.
The CFTC alleges that Ikahn and Safeguard Metals deceived customers by making false and misleading statements about the risk and safety of their investments. They also allegedly inflated the price of silver coins, charging an average markup of 71% despite a stated maximum markup of 23% in customer agreements. This resulted in immediate and substantial losses for investors.
“The defendants targeted elderly victims to liquidate their retirement savings to invest in a precious metals scam,” said Ian McGinley, Director of Enforcement at the CFTC. “Working closely with the 30 state co-plaintiffs, this resolution as to liability is a critical step in addressing the defendants’ fraud.”
The court order permanently enjoins Ikahn from future violations of the Commodity Exchange Act (CEA) and CFTC regulations, as well as state laws and regulations. It also prohibits him from trading or registering with the CFTC and the states. The determination of restitution, disgorgement, and civil monetary penalties will be decided at a later date by the court.
This case runs parallel to a civil action filed by the Securities and Exchange Commission (SEC) in February 2022, where Ikahn and Safeguard Metals admitted liability for similar violations. The SEC’s consent order also reserves the determination of disgorgement and penalties for a future decision. The CFTC and NASAA acknowledged the assistance of the SEC in the investigation.
Source: CFTC.gov
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