LOS ANGELES – Tyler G. Gallagher, owner and CEO of Regal Assets LLC, and Leah Donoso, the company’s former president, have been hit with default judgments totaling over $49.2 million following a joint investigation by the Commodity Futures Trading Commission (CFTC) and the California Department of Financial Protection and Innovation (DFPI). U.S. District Judge Fernando M. Olguin of the Central District of California issued the orders on October 15th.
The legal action, stemming from a complaint filed September 27, 2023, alleges that Regal Assets LLC, a California-based company, misappropriated over $21 million from more than 120 customers who transferred funds from their retirement accounts to purchase precious metals through self-directed IRAs. Instead of using the full amount for purchases, the defendants allegedly diverted funds for other purposes.
According to the CFTC, Gallagher, formerly of Los Angeles, and Donoso, of Robinson, Texas, knowingly made fraudulent misrepresentations and omissions to customers, including the use of forged documents to conceal the misappropriation and maintain the scheme. The CFTC and DFPI jointly pursued the case, highlighting a collaborative effort to protect investors.
The default judgments require the defendants to jointly pay over $21.9 million in restitution to the defrauded customers and $27.3 million in civil monetary penalties. Additionally, they are permanently barred from engaging in any conduct violating the Commodity Exchange Act (CEA) and California law, and are banned from registering with the CFTC or trading on CFTC-regulated markets.
The CFTC encourages the public to verify registration of companies like Regal Assets through the National Futures Association’s BASIC system before investing. The agency also provides resources for identifying and reporting precious metals fraud, and offers a whistleblower program with potential rewards for information leading to successful enforcement actions. Individuals suspecting fraud can contact the CFTC via its hotline at 866-FON-CFTC or file a complaint online.
Source: CFTC.gov
Related Federal Cases
- Aleksandr Kovalev, Wire Fraud, California 2024 · New Mexico
- Mervin Barclay Davis, Securities Fraud, California 2013 · Pennsylvania
- John Stuart Hill, Real Estate Investment Fraud, California 2024 · Pennsylvania
- David Gomez, Chiropractic Billing Mail Fraud, California 2023 · Utah
- Carl Dean Bullock, Mail and Wire Fraud, California 2024 · Alabama
