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.
A recent report shows that elderly Americans are collectively losing billions of dollars through nefarious means.
Earlier this year, AARP released a report, showing that Americans over the age of 60 years old lose $28.3 billion each year to ‘elder financial exploitation’ (EFE).
According to the non-profit, EFE is “the illegal or improper use of an older adult’s funds, property, or assets.”
“While strangers often rely on quick and irreversible transactions such as gift cards or wire transfers, perpetrators who know the victim are more likely to gain direct access to their victims’ bank accounts. But financial exploitation of any kind wreaks havoc on the lives of older adults and their families,” said Jilenne Gunther, National Director of AARP’s BankSafe Initiative and lead author of the report. “The keys to stopping this growing problem are consumer education, frontline employee training and strengthened technology to flag suspicious activity.”
AARP labeled its methodology for producing the total annual losses as “a first-of-its-kind,” due to the fact that the majority of these dollars go unreported. In fact, the report estimated that out of the $28.3 billion comprising the annual EFE deficit, $20.5 billion is unreported. Almost three-quarters of the $28.3 billion ($20.3 billion) stems from people the victim(s) know, while the remaining $8 billion is pilfered from strangers.
In its conclusion, AARP asserts that the reason for this vast divide between the fraud from strangers or family / friends is because “the nature of stranger-perpetrated fraud bears little resemblance to fraud initiated by people the victim knows. To start, while strangers may rely on quick and irreversible transactions such as gift cards or wire transfers, perpetrators familiar to the victim are more likely to make incremental inroads, gaining direct access to funds, for example, by attaining joint ownership or power of attorney status on their victims’ accounts.”
The report gave two possible solutions to help minimize future EFE. The first is to “provide funding to states to mandate and standardize data collection procedures of Adult Protective Services, which would enhance the picture of EFE.” The second is to “tailor evidence-based intervention strategies based on perpetrator type.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
A locked door will no longer be a barrier to first responders assisting the elderly or those with special needs.
Earlier this month, the Phoenix City Council launched a program to provide lock boxes for the elderly and those with special needs. Without an access point like a lock box, first responders like firemen may be forced to break into homes to provide assistance, potentially breaking doors and damaging the property in the process.
Firefighters from @PHXFire & @ScottsdaleFire safely evacuated two elderly homeowners during a 2nd Alarm House Fire near 44th St & McDonald Dr. On arrival crews found heavy fire and smoke coming from the roofline of a large residential home. pic.twitter.com/14jZvAa0cT
The council members approved the program unanimously. The city will launch a pilot version of the program in District 1 prior to work out any challenges and hone in logistics.
Councilwoman Ann O’Brien explained that the program would prevent significant property damage from occurring to those requiring firemen assistance. It comes at no cost to the city.
Other cities such as Glendale and Scottsdale have already coordinated with private entities to roll out similar programs.
The Phoenix Realtors donated 100 lock boxes to establish the program, called the “Residential Lock Box Access Program.” The Phoenix Fire Department will oversee the program, maintaining a database of installations, ensuring the Phoenix Fire Regional Dispatch Center codifies the data in a premise alter for responding units.
Those interested in the lock box program may contact the Phoenix Fire Department’s Community Involvement Section.
#PHXPD800Patrol Officers were called to a check on an elderly man (85) who missed his Dr. appointment. When they arrived, they saw he had no electricity, no food, no AC, as well as seven dogs.
