by Jonathan Eberle | Oct 29, 2025 | News
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.
by Ethan Faverino | Oct 20, 2025 | News
By Ethan Faverino |
The Arizona Corporation Commission (ACC) has announced a landmark $132.91 million settlement with Vanguard Marketing Corporation and The Vanguard Group, Inc. to address failures in supervising registered persons and disclosing potential tax consequences to investors.
The settlement follows a change in investment minimums for certain Vanguard target-date retirement funds, which resulted in significant, unanticipated capital gains taxes for investors.
The agreement is the result of a three-year, multi-state investigation led by a task force coordinated through the North American Securities Administrators Association (NASAA), in conjunction with a parallel investigation by the U.S. Securities and Exchange Commission (SEC).
In Arizona alone, 3,675 Vanguard account holders were financially impacted, with additional Arizona investors affected through non-Vanguard custodians.
The settlement ensures full restitution for all affected investors nationwide who faced unexpected tax liabilities due to Vanguard’s oversight.
The SEC has established a Fair Fund to manage the distribution of the $132.91 million settlement, which Vanguard has already paid. The Fair Fund administrator will identify eligible investors, including those in Arizona holding Vanguard funds through non-Vanguard custodians.
Officials at Vanguard have yet to admit or deny the findings of the investigations by the ACC or SEC.
The SEC will oversee the distribution process for all states, including Arizona, to ensure fair and efficient restitution.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Staff Reporter | May 3, 2025 | News
By Staff Reporter |
A commissioner with the Arizona Corporation Commission (ACC), Nick Myers, denies a power company is to blame for a woman’s death.
82-year-old Kate Korman died last May less than a week after the Arizona Public Service (APS) shut off her power for failure to pay. Per APS, Korman ceased paying in January and owed around $500.
The medical examiner’s report attributed Korman’s cause of death as chronic alcohol use with heart disease listed as a contributing factor and declared the manner of her death to be an accident caused in part by exposure to elevated temperatures.
ACC prohibits power shut offs based on a certain timeline — June 1 through October 15 — not based on temperatures. APS does offer a program allowing family members to oversee their loved one’s bills.
Myers opposed modifying policy to implement temperature-based shutoff restrictions. The commissioner also said the current shutoff restrictions have caused more problems than it aimed to solve.
“We are already at a point where the policies we have in place are causing massive debt within our lower income communities (an unintended consequence of those policies) and therefore I believe, and am attempting to verify, that the mental stress is actually CAUSING more deaths than they are saving (by way of suicides increasing). Furthermore, much of that debt, millions of dollars of it actually, are ultimately being transferred back to the rest of the customers, increasing bills, which is actually exacerbating the underlying problem of people not being able to pay their bills,” said Myers. “In a nutshell, at some point people (and their families, and possibly their communities, like churches) should be responsible, it shouldn’t all fall on utilities and the ratepayers of utilities. It’s ultimately an unsustainable catch-22, and we are possibly seeing that we are at that cusp right now.”
Myers defended APS in response to criticisms made by Jonathan and Adam Korman, the sons of the deceased woman. Korman maintains his mother died due to temperatures inside her home, and that APS bears responsibility for shutting off her power.
Myers asserted there existed no further remedies to mitigate heat exposure due to shutoffs. Myers indicated there were further details about the elder Korman’s death that would have cast her in a negative light.
“Alcoholism killed your mother, heat may have been a contributing factor, but the utility did go above and beyond what we require. There really are no more practical methods that can be implemented at this point,” said Myers. “We did address it and trust me, I’m sure the family doesn’t want made public what we found. This is another case where the utility did above and beyond what they needed to, and more importantly the shutting off of power for non-payment was NOT the cause of death.”
Myers also said the elder Korman’s children bore some of the responsibility for her death, since they were not keeping an eye on her.
“So you are really going to come after us, who have no control over the situation, when you failed to protect your own mother, even though there were multiple tools in place for you to use for that exact purpose?” said Myers. “I’m not just blaming your mom, I’m more blaming you for not looking out for your elderly mom. I refuse to tell utilities that they have to provide power to people that do not pay their bills. To be honest, I’m not even happy about many of the programs that they have in place to help, but I understand the need for them. The only problem is the customer, and their family, have to actually reach out to take advantage of those programs. Again, I am sorry for your loss, but you have to take responsibility here. This is not a problem that the rest of society should shoulder.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Terri Jo Neff | Dec 24, 2022 | News
By Terri Jo Neff |
The largest wind energy project in the Western Hemisphere is one step closer to generating electricity for 3 million Americans after Pattern Energy received the final approval it needs from Arizona officials for a transmission line that will carry electricity from the New Mexico wind project to Arizona.
The Arizona Corporation Commission (ACC) recently gave its unanimous approval to the Certificate of Environmental Compatibility application for Pattern Energy’s 550-mile SunZia Transmission project. The transmission line will be the conduit for Pattern Energy’s own 3,500MW SunZia Wind facility being constructed across three central New Mexico counties.
The ACC certificate represents the completion of the Arizona permitting process for the ±525 kV high-voltage direct current (HVDC) transmission line that will enter Arizona from the east, running along the southern end of Graham and Greenlee counties before veering southwest through northern Cochise County.
The line will then head northwest through the far northeast corner of Pima County before heading on to Pinal County where the project ends. There are plans for a third party transmission line to then carry the electricity to the Palo Verde Hub.
Pattern Energy continues to work with the Bureau of Land Management (BLM) as well as local jurisdictions and stakeholders to finalize the remaining approvals needed to allow construction on the projects to begin on schedule in mid-2023. A Record of Decision from BLM is anticipated in April 2023, the key approval required prior to construction.
Those approvals will bring badly needed temporary and permanent jobs to Arizona, particularly in Cochise County and Pinal County. There will also be associated revenues such as for materials, equipment, fuel, and temporary housing.
“This project is of great economic benefit with more than 2,000 construction jobs and up to 150 permanent jobs, which for our rural communities is a lifeline,” said Mignonne Hollis, Executive Director of the Cochise County-based Arizona Regional Economic Development Foundation. “It’s vital for our county, which continues to see a decline in population, to have stable jobs come into our region.”
The SunZia wind and transmission project was first proposed in 2006 and received its first granted accepted rating from the Western Electricity Coordinating Council in 2011. Its first of many federal approvals came in 2015.
Since then, dozens of environmental and sustainability reviews have been conducted for the joint project, which will have a footprint in 13 counties between the two states.
Company officials say the combined SunZia Wind project and Transmission project comprise the largest renewable energy infrastructure project in U.S. history with a total privately-funded investment of more than $8 billion.
“The unanimous decision by the ACC to grant a Certificate of Environmental Compatibility for the SunZia Transmission line represents a major milestone towards the completion of this project,” said Mike Garland, CEO of Pattern Energy which owns the SunZia project. “Once complete these projects will combine to increase the reliability of the western grid, create good jobs, and bring millions of dollars in economic benefits to Arizona and New Mexico.”
The operational portfolio of California-based Pattern Energy includes 35 renewable energy facilities that use proven, best-in-class technology with an operating capacity of nearly 6,000 MW in the United States, Canada, Japan, and Mexico.
Terri Jo Neff is a reporter for AZ Free News. Follow her latest on Twitter, or send her news tips here.
by Terri Jo Neff | Nov 23, 2021 | News
By Terri Jo Neff |
The Arizona Corporation Commission (ACC) could vote as early as next month on a proposal that would ensure the reliability of electric, gas, and water service across the state by protecting thousands of utility employees from termination for not receiving a COVID-19 vaccination.
Commissioner Justin Olson and Commissioner Jim O’Connor are advocating for the ACC to adopt a policy and associated rules to prohibit the agency’s regulated utilities -also known as public service corporations (PSCs)- from compelling employees to be vaccinated to keep their jobs. Each violation of the policy could come with a hefty fine under the proposal.
“The Biden administration has unconstitutionally sought forced vaccinations and has intimidated companies into complying with this inappropriate policy,” Olson said of the proposal presented to the other three commissioners last week. “Workers should not have to choose between losing their jobs or being forced to receive a vaccine against their will.”
But Olson told AZ Free News on Tuesday he has another concern with the mandates, one that involves potential negative impacts to Arizona’s regulated utilities due to losing valuable employees through COVID-19 related resignations or terminations.
“Our utilities rely on a highly experienced and trained workforce.” Olson said. “We cannot allow Biden’s unconstitutional vaccine mandate to drive away critical employees whose skills are necessary to maintain safe and reliable power and water.”
The letter Olson and O’Connor sent to their fellow commissioners points out that the agency has the authority in the Arizona Constitution to “make and enforce rules, regulations, and orders” related to the safety and health of employees of PSCs.
“This is especially true when the federal government is intimidating companies to develop, implement and enforce such mandatory vaccine policies,” the letter states.
There are currently two federal COVID-19 vaccination mandates which could impact Arizona’s utilities. One is an executive order issued by President Joe Biden requiring federal contractors and subcontractors to impose mandatory COVID-19 vaccination policies.
According to Olson and O’Connor, the broad language of the executive order implicates the very PSCs which the ACC regulates “that have legally enforceable agreements with the federal government, including military bases in Arizona.”
The other mandate was issued by OSHA. It requires all private employers with 100 or more employees to implement a vaccination policy that can require stringent, invasive testing. The OSHA mandate is currently on hold while under review by federal courts across the country.
One of those courts, the Fifth Circuit Court of Appeals, said OSHA’s mandate “raises serious constitutional concerns” and grossly exceeds the agency’s statutory authority.
Olson and O’Connor have asked that their concerns be placed on the agenda for discussion and possible vote at the ACC’s Dec. 15 and 16 open meetings.
