Federal Court Orders $51 Million Judgment Against Precious Metals Firm For Defrauding Seniors

Federal Court Orders $51 Million Judgment Against Precious Metals Firm For Defrauding Seniors

By Jonathan Eberle |

The Arizona Corporation Commission (ACC) announced that the U.S. District Court for the Central District of California has entered a final judgment against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for orchestrating a multimillion-dollar fraud scheme that preyed on elderly and retirement-aged investors across the country.

The ruling orders approximately $25.6 million in restitution to victims and an equal civil monetary penalty, totaling more than $51 million in sanctions. The decision follows a coordinated enforcement effort between the Commodity Futures Trading Commission(CFTC) and 30 state regulators, including Arizona.

According to court findings, Safeguard Metals and Ikahn operated a deceptive precious metals investment scheme between October 2017 and July 2021, soliciting roughly $68 million—primarily from retirement accounts—belonging to at least 450 individuals. The company promised secure investments in silver and other metals but instead misled investors with false information and inflated pricing on the metals sold.

Investigators found that the firm concealed material facts, manipulated sales tactics, and grossly overcharged customers for products that were worth far less than claimed. Much of the money lost came from seniors’ life savings and retirement accounts.

“The court’s final judgment in this matter provides meaningful restitution to investors harmed by this fraudulent action and it reinforces that the Arizona Corporation Commission will take decisive action to protect investors, especially those in vulnerable communities,” said ACC Chair Kevin Thompson. “I want to thank the CFTC and the state regulators for their dedication and hard work.”

Thompson added that the case serves as a reminder of the essential role state regulators play in detecting and halting investment fraud. “This outcome is an important reminder that state securities regulators play a critical role in fighting investment fraud in all forms,” he said.

The U.S. Securities and Exchange Commission (SEC) also pursued a parallel enforcement action in 2022 against Safeguard Metals and Ikahn. Earlier this year, the court ordered the defendants to pay $25.6 million in disgorgement and an equal civil penalty, mirroring the CFTC and state regulators’ ruling. Any funds paid under one judgment will be credited toward the other to prevent duplication.

The sweeping case reflects cooperation among financial regulators from 30 states, including Alabama, Arizona, Arkansas, California, Florida, Illinois, New York, and Texas, as well as the CFTC’s national enforcement network.

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.

Eli Crane And Ted Cruz Lead Bicameral Push For Proof Of Citizenship In Federal Voter Registration

Eli Crane And Ted Cruz Lead Bicameral Push For Proof Of Citizenship In Federal Voter Registration

By Ethan Faverino |

U.S. Senator Ted Cruz (R-TX) and Representative Eli Crane (R-AZ-02) led a bicameral coalition of lawmakers in submitting a formal comment letter to the U.S. Election Assistance Commission (EAC) in strong support of a petition by the America First Legal Foundation.

The petition calls for amending federal regulations and the National Mail Voter Registration Form to mandate documentary proof of U.S. citizenship (DPOC) for registering to vote in Federal Elections.

The current federal form relies exclusively on self-attestation, allowing applicants to check a box affirming citizenship under penalty of perjury, creating what lawmakers describe as an “honor system” with no meaningful safeguards against ineligible registrations.

The proposed reform would require verifiable proof of citizenship at the point of registration, aligning voter enrollment with common identification requirements.

“Requiring documentary proof of citizenship is a simple, common-sense reform,” wrote the lawmakers in the formal comment letter. “Just as Americans are asked to show identification for far less consequential activities—boarding an airplane, opening a bank account, or even attending certain events—it is entirely reasonable to require proof of citizenship to participate in our elections. This step would not burden eligible voters but would provide an essential check to ensure that only citizens are added to the voter rolls.”

The lawmakers cited recent incidents as evidence of systemic vulnerabilities:

  • In Iowa, officials identified 277 noncitizens on voter rolls, with at least 35 confirmed to have cast ballots in the 2024 election.
  • All 15 counties in Arizona are actively working to identify and remove noncitizens from voter rolls.
  • In Texas, election integrity units have documented multiple cases of noncitizen voting and registration fraud, including a conviction in Starr County for illegal voting, prosecutions in Hidalgo County for falsifying applications with fictitious addresses, and instances in Tarrant County where noncitizens registered using the federal form without proof of citizenship.

Under the National Voter Registration Act (52 U.S.C. § 20508(a)(1)–(2)), the EAC has both the authority and duty to develop the National Mail Voter Registration Form and prescribe necessary regulations to protect the integrity of the electoral process and maintain accurate voter rolls.

“I’m proud to support this effort to strengthen our election system. In our constitutional republic, only American citizens should be able to vote, and requiring proof of citizenship at registration is a commonsense safeguard,” said Representative Crane. “Considering we already show ID to drive, fly, or open a bank account, this is not a novel concept. It’s simply a necessary step to ensure the integrity of our elections.”

Along with Senator Cruz and Representative Crane were cosigners:

Senators: Jim Banks (R-IN), Marsha Blackburn (R-TN), Ted Budd (R-NC), John Cornyn (R-TX), Cindy Hyde-Smith (R-MS), Roger Marshall (R-KS), Ron Johnson (R-WI), and Bernie Moreno (R-OH).

Representatives: Andy Biggs (R-AZ), Byron Donalds (R-FL), Pat Fallon (R-TX), Andy Harris (R-MD), Clay Higgins (R-LA), Ronny Jackson (R-TX), Mary Miller (R-IL), Barry Moore (R-AL), Riley Moore (R-WV), Derek Schmidt (R-KS), and Greg Steube (R-FL).

The lawmakers concluded with, “Requiring documentary proof of citizenship will strengthen the integrity of our elections, safeguard the voices of American citizens, and ensure that every lawful vote is protected from being diluted by unlawful ballots.”

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Horne Praises UA, ASU Talks With Trump Admin On Merit-Based Higher Education Compact

Horne Praises UA, ASU Talks With Trump Admin On Merit-Based Higher Education Compact

By Jonathan Eberle |

Arizona Superintendent of Public Instruction Tom Horne is welcoming discussions between the University of Arizona (UA), Arizona State University (ASU), and the Trump administration on a new Compact for Academic Excellence in Higher Education, a federal initiative promoting merit-based standards and accountability in universities.

Horne, who also serves on the Arizona Board of Regents, said the compact reflects his long-held belief that education policy should prioritize individual achievement over racial or identity-based criteria.

“Since I took on the Tucson Unified district in 2008 to end the racially divisive ‘Ethnic Studies’ program, I have been fighting against racial entitlements,” Horne said in a statement. “People should be judged on their character and merit, not the color of their skin. The Trump administration’s federal compact for universities shares that same goal, and I am pleased that universities, including the University of Arizona and Arizona State University, are in discussions with the President on enshrining those principles in their schools.”

Horne also disputed recent reports suggesting that the University of Arizona had declined to participate in the compact, pointing instead to a recent letter from UA President Suresh Garimella to U.S. Education Secretary Linda McMahon. In the letter, Garimella expressed alignment with the administration’s goals of strengthening higher education through merit, excellence, and accountability.

“We share your vision of continuing to strengthen our higher education system for the betterment of the country — a vision rooted in a merit-based pursuit of excellence that directly or indirectly benefits all Americans,” Garimella wrote. He added that the university finds “much common ground with the ideas your administration is advancing” and welcomes collaboration with other institutions, higher education associations, and Congress “to advance and implement our principles in alignment with the national interest.”

Garimella’s Statement of Principles, included with the letter, outlines commitments to nondiscrimination, academic freedom, fiscal responsibility, and research integrity. It reaffirms that admissions and hiring decisions at UA will continue to be merit-based, and that diversity statements will not be used in employment processes. The document also emphasizes free speech protections, pledging to uphold the Chicago Principles on Freedom of Expression and to publish results from campus surveys on viewpoint diversity.

Under Garimella’s leadership, UA reports a 22% reduction in administrative spending, a tuition freeze for in-state students, and an expanded focus on aligning research priorities with national and economic security needs — reforms he described as consistent with the compact’s goals.

Horne said those steps demonstrate “a serious commitment to the kind of merit-driven, excellence-focused education system that Arizona taxpayers deserve.”

Both UA and ASU are expected to continue discussions with federal officials about implementing the compact in ways that preserve institutional autonomy while aligning with national standards for merit and accountability.

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.

Retail Returns Projected To Hit $850 Billion In 2025

Retail Returns Projected To Hit $850 Billion In 2025

By Ethan Faverino |

According to the newly released 2025 Retail Returns Landscape, U.S. retailers project that nearly $850 billion in merchandise will be returned this year, equivalent to 15.8% of total sales.

The figure, while substantial, reflects a slight decline from last year’s 16.9% return rate and $890 billion in total returns.

“Returns are no longer the end point of a transaction,” said NRF Vice President of Industry and Consumer Insights Katherine Cullen. “They provide an opportunity for retailers to create a positive experience for customers and can translate to brand loyalty. Retailers are constantly evolving and working to meet customer expectations, and they recognize the importance the returns process plays.”

While overall return rates remain steady, online sales continue to drive higher volumes, with an estimated 19.3% of e-commerce purchases expected to be returned in 2025.

Generational shifts are amplifying these trends, particularly among Gen Z shoppers (age 18-30) who averaged 7.7 online returns over the past 12 months, more than any age group.

Consumer demands for seamless returns are intensifying as 82% of shoppers now cite free returns as a major factor in their purchasing decisions, up from 76% last year. Additionally, 76% of shoppers are more likely to choose the return method offering instant refunds or exchanges.

However, a negative returns experience carries significant consequences: 71% of consumers report they are less likely to shop with a retailer again following a poor encounter, rising from 67% in 2024. Four out of five consumers say they are likely to share their bad experience with friends and family, potentially magnifying reputational damage.

Retailers are navigating these expectations while contending with escalating operational costs and external pressures. Surveyed merchants identified increasing online sales and reducing return rates as their top priorities in 2026.

Key drivers for charging return fees include:

  • Processing costs (40%)
  • Higher carrier shipping expense (40%)
  • Economic uncertainty tied to tariffs (33%)

Return fraud remains another persistent challenge, accounting for 9% of all returns. Among retailers tracking fraud, 71% reported an increase in overstated return quantities, 65% noted “empty box” or “box of rocks” incidents, and 64% saw rises in decoy returns involving counterfeit items.  To combat return fraud, 85% of retailers have begun to use AI to detect or prevent fraud from happening.

Notably, 45% of consumers—particularly when dissatisfied— believe that “bending the truth” is acceptable during a return.

David Sobie, co-founder and CEO of Happy Returns, said, “Return policies and their overall process have transformed into a strategic touchpoint for retailers, influencing how younger consumers shop from the outset. To stay competitive amid rising return rates and behaviors like bracketing, retailers must modernize their reverse logistics to enhance customer satisfaction, reduce fraud, and safeguard their operations in today’s high-pressure retail landscape.”

Looking into the holiday season, retailers anticipate 17% of holiday sales will be returned, consistent with prior years. To manage this surge, 49% plan to lean on third-party logistics partners, 43% will hire seasonal staff, and 37% intend to extend return windows.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

Arizona Schools Lead In Usage Of AI As A Learning Tool

Arizona Schools Lead In Usage Of AI As A Learning Tool

By Staff Reporter |

Arizona education leaders want their students to be ready for the dawning age of artificial intelligence (AI).

The state is now the leader in the nation for percentage of students using AI tools. State Superintendent Tom Horne announced this development on Thursday in a press release. 

“I am a strong supporter of AI as a classroom tool to assist, but not replace, educators,” said Horne. “So far, about 4,000 educators statewide are using this system, and I encourage more teachers to sign up. It is an invaluable resource that helps educators do their jobs more effectively.”

Over 170,000 students — representing 16 percent of the state’s public school student population — are using AI-powered tutoring to improve their academic performance.

These students rely on the AI education system Khanmigo within Khan Academy. Horne called the sweeping adoption of the tools “tremendous.” The Arizona Department of Education invested $1.5 million for Khamingo access last year. 

Horne said he selected Khanmigo for its tutoring approach: guiding students through the critical thought process, rather than merely providing answers.

“It engages students by asking questions that guide them to discover solutions on their own,” said Horne. “This approach delivers rigorous, individualized Socratic-style tutoring — a proven method for improving academic outcomes.”

The “Socratic” method referenced by Horne concerns arriving at answers through a series of open-ended questions structured to encourage critical thinking.

An example of Khanmigo’s phrasing provided in the press release (solving for “m” in the sample math problem, 3 – 2(9+2m) = m) showed how the tool prioritizes guiding the student to work through problems.

“Let’s work through it together! What do you think the first step should be to solve this equation?”

Khanmigo conversations are also recordable and viewable by teachers. 

The over 4,000 Arizona educators mentioned by Horne rely on an online AI platform called the Arizona Digital Educators Library (ADEL). This platform assists educators with creating lesson plans and classroom materials that meet the state’s academic standards. 

ADEL also has 50 ambassadors to increase educator usage throughout the state. There are over 57,000 educators in the state: over 47,000 in district schools and nearly 10,000 in charter schools.

As Horne explained in his State of Education speech in January, educators can use Khanmigo to strengthen student weaknesses revealed through testing. 

“Today, when a teacher gives a test, some students get 90 percent, others get 70 percent. Those with 70 percent are moved to the next grade, missing 30 percent of the knowledge they need for continuing their studies. They are lost,” said Horne. “With Khanmigo, the teacher can say ‘here is what you did not learn, use Khanmigo to tutor you on that subject.’”

State Senator Jake Hoffman, founder of the Arizona Freedom Caucus, expressed support for the implementation of AI tools in schools. Hoffman said AI posed a greater threat to the American worker than Russia, China, and nuclear war.

“If K-12 public schools and public universities are not aggressively retooling every aspect of their operation to equip students with the skills to survive in this new AI age, they’ve already failed,” said Hoffman. 

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

Biggs Introduces Bill Requiring DHS To Publicly List Individuals With Final Deportation Orders

Biggs Introduces Bill Requiring DHS To Publicly List Individuals With Final Deportation Orders

By Ethan Faverino |

Representative Andy Biggs (AZ-05) has introduced the Deportation Disclosure Act, legislation designed to enhance transparency in the nation’s immigration enforcement system by requiring the Department of Homeland Security (DHS) to publicly disclose key details of individuals with final orders of removal.

The bill amends Section 240 of the Immigration and Nationality Act (8 U.S.C. 1229a) to mandate that DHS publish on its official website, for every individual issued a final order of removal after the date of enactment: the individual’s name, a photograph, any known aliases, and the last known state of residence.

This measure follows the September 2025 arrest by ICE of Ian Roberts, a Guyanese national who had been serving as superintendent of Des Moines Public Schools despite a standing final order of deportation.

Roberts, who has an extensive criminal history, allegedly falsified claims of U.S. citizenship and work authorization to secure his position.

“At the end of 2024, more than a million illegal aliens, including Ian Roberts, had final orders of removal against them, but were roaming freely in the United States,” said Congressman Biggs.  “Instead of enforcing our immigration laws and deporting illegal aliens who had due process in our immigration courts, the Biden administration focused on making it as easy as possible for illegal aliens of any and every criminal background to enter and stay in our nation. Making final orders of removal readily accessible to the public will only increase public safety and ensure incidents like this one don’t happen again.”

Grant Newman, Director of Government Relations at the Immigration Accountability Project, added, “The Deportation Disclosure Act would bring much-needed transparency and accountability to our immigration enforcement process. By making final orders of removal accessible, this bill would empower communities and law enforcement, ensuring that individuals who have already received due process in our courts cannot hide in plain sight.”

Congressman Biggs emphasized that the Trump administration is actively working to reverse the border security lapses of the Biden-Harris-Mayorkas era, thus protecting American communities and restoring integrity to the immigration system.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.