Los Angeles, CA – Jeffrey Ikahn (formerly known as Jeffrey Santulan and Jeffrey Hill) and Safeguard Metals LLC have been found liable for a $68 million nationwide fraud 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 regulators brought the action against Ikahn and his company.
The scheme, which ran from approximately October 2017 through at least July 2021, involved the sale of fraudulently overpriced silver coins. Investigators allege that Ikahn and Safeguard Metals solicited approximately $68 million in funds, largely from the retirement savings of around 450 people, to purchase the precious metals.
The CFTC alleges the defendants deceived customers with false and misleading statements regarding the risks and safety of their investments, and significantly inflated the prices of the silver coins. Customers reportedly paid an average markup of 71% on the coins, despite agreements stating a maximum markup of 23%. This resulted in immediate and substantial losses for investors. Authorities also claim the defendants misled customers about the true value of the silver coins.
“The defendants targeted elderly victims to liquidate their retirement savings to invest in a precious metals scam,” stated 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.”
This case runs parallel to a civil action filed by the Securities and Exchange Commission (SEC) in February 2022, alleging similar violations. On June 14, the SEC entered a consent order with Ikahn and Safeguard Metals where they admitted liability. The current CFTC order enjoins Ikahn and Safeguard Metals from future violations of the Commodity Exchange Act and related regulations, as well as state laws. It also prevents them from trading or registering with the CFTC and participating states. The amounts of restitution, disgorgement, and civil monetary penalties will be determined at a later date by the court.
The CFTC collaborated with securities regulators from 30 states in bringing this case. The SEC also provided assistance in the investigation.
Source: CFTC.gov
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