SEC v. Safeguard Metals LLC and Jeffrey Ikahn — U.S. Securities and Exchange Commission Litigation Release No. 26307, dated May 9, 2025.
The SEC charged Safeguard Metals LLC and its owner, Jeffrey Ikahn, with defrauding elderly investors in a multi-million dollar scheme involving gold and silver coins. They convinced investors to sell securities, move funds into self-directed IRAs, and buy coins, making false statements about safety, liquidity, and Safeguard's compensation. Final judgments ordered them to pay over $35 million in disgorgement, interest, and penalties.
Imagine you have money saved for retirement in a special account. Two people, Safeguard Metals and its owner Jeffrey, convinced many older people to take their retirement money and buy gold and silver coins from them. They promised it was safe and easy, but they lied. They charged way too much for the coins and didn't tell people the truth about how they made money. Because of this, the government stepped in and made them pay back the money they took unfairly, plus extra fines.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
On May 2, 2025, the Securities and Exchange Commission obtained final judgments against California-based Safeguard Metals LLC and its owner, Jeffrey Ikahn. In 2022, the SEC charged Safeguard and Ikahn with operating a multi-million-dollar fraudulent scheme involving the sale of gold and silver coins to hundreds of investors who were at or near retirement age. The SEC’s amended complaint, filed in the Central District of California, alleged that Safeguard and Ikahn acted as unregistered investment advisers and persuaded investors to sell their existing securities, transfer the proceeds into self-directed Individual Retirement Accounts, and invest the proceeds into gold and silver coins by making false and misleading statements about the safety and liquidity of the investors’ securities holdings, Safeguard’s business, and its compensation. According to the amended complaint, Safeguard and Ikahn also misled investors about Safeguard’s commissions and markups on the coins, charging average markups of approximately 64% on its sales of silver coins. On June 14, 2023, the Court entered partial judgments by consent against Safeguard and Ikahn. The partial judgments permanently enjoined Safeguard and Ikahn from violating the antifraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court’s final judgments ordered Safeguard and Ikahn to pay, jointly and severally, $25,569,303 in disgorgement of ill-gotten gains, $4,821,263 in prejudgment interest, and $25,569,303 in civil penalties. The SEC's investigation was conducted by Jedediah B. Forkner and Jean M. Javorski of the SEC's Chicago Regional Office, and was supervised by Anne C. McKinley. The litigation was led by Jonathan S. Polish. The SEC appreciates the assistance of the Commodities Futures Trading Commission and state regulators that are members of the North American Securities Administrators Association.
Named in this action: Safeguard Metals LLC and Jeffrey Ikahn.