Woodland Hills, CA – Federal and state regulators have jointly filed a civil enforcement action against Safeguard Metals LLC and its principal, Jeffrey Santulan, also known as Jeffrey Hill, alleging a $68 million nationwide fraud targeting elderly investors. The Commodity Futures Trading Commission (CFTC) and 27 state securities regulatory agencies, members of the North American Securities Administrators Association (NASAA), filed the complaint in the U.S. District Court for the Central District of California.
The complaint details a scheme in which Santulan and Safeguard Metals allegedly solicited approximately $68 million from at least 450 individuals across the United States between October 2017 and July 2021. The majority of the funds came from retirement savings, and were intended for the purchase of precious metals, primarily gold and silver coins. Regulators allege the defendants fraudulently overpriced the silver coins and made false and misleading statements to customers regarding the risk and safety of the investments.
The CFTC and state securities regulators are seeking the return of ill-gotten gains, civil monetary penalties, restitution for victims, permanent registration and trading bans, and a permanent injunction to prevent further violations of the Commodity Exchange Act (CEA) and state regulatory laws. This action marks the second nationwide fraud case against precious metals dealers undertaken jointly by the CFTC and NASAA regulators, building on an information-sharing agreement between the agencies.
“This joint investigative effort between the CFTC and 27 state regulators represents our mutual interest in protecting main street investors,” stated CFTC Chairman Rostin Behnam. NASAA President Melanie Senter Lubin emphasized the prevalence of investment scams targeting seniors and vulnerable populations, while CFTC Acting Director of Enforcement Vincent McGonagle affirmed the agency’s commitment to protecting retirement savings from commodities fraud. Joseph P. Borg, Co-chair of NASAA’s Enforcement Section, highlighted the increasing complexity of investment products and the need for robust regulatory oversight.
The case underscores a growing collaborative effort between federal and state agencies to combat investment fraud, particularly schemes that prey on vulnerable populations. Regulators continue to urge investors to exercise caution and thoroughly research any investment opportunities before committing funds.
Source: CFTC.gov
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