A massive $185 million fraud targeting elderly investors nationwide has landed two precious metals dealers and their companies in court, according to a joint enforcement action filed by the Commodity Futures Trading Commission (CFTC) and 30 state regulators. The case, filed in the U.S. District Court for the Northern District of Texas, alleges a scheme to sell fraudulently overpriced gold and silver bullion.
Charged in the complaint are TMTE, Inc., d/b/a Metals.com, Chase Metals, LLC, and Chase Metals, Inc. (collectively “Metals.com”), along with principals Lucas Asher, also known as Lucas Thomas Erb and Luke Asher, and Simon Batashvili. Barrick Capital, Inc. is also named as a defendant, and Tower Equity, LLC, is listed as a relief defendant. All entities and individuals are based in Los Angeles, California.
On September 22, 2020, Judge David C. Godbey issued a restraining order, freezing the assets of the defendants and the relief defendant. This allows the CFTC and state regulators to inspect relevant records. A receiver has been appointed to take control of Metals.com, Barrick, and Tower Equity, as well as the personal assets of Asher and Batashvili.
The CFTC investigation ran parallel to investigations conducted by state securities regulators. This marks the largest joint filing in CFTC history with state regulators, and the first to stem from a 2018 information-sharing agreement between the CFTC and the North American Securities Administrators Association (NASAA). NASAA represents state and provincial securities regulators across the United States, Canada, and Mexico.
“This historic joint effort…is an important step toward rooting out fraud across the country,” stated CFTC Chairman Heath P. Tarbert. CFTC Director of Enforcement James McDonald emphasized the importance of collaboration, noting the agency’s commitment to working closely with state authorities. Lisa Hopkins, NASAA President, echoed this sentiment, highlighting the benefits of inter-agency cooperation for investor protection and market integrity.
The complaint details an ongoing nationwide fraud where investors were allegedly solicited to purchase gold and silver bullion at inflated prices. The CFTC and state regulators are seeking full restitution for the victims, as well as civil monetary penalties. The investigation remains ongoing.
Source: CFTC.gov
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