Precious metals like gold and silver have been considered valuable commodities for centuries. Many people see these metals as a safe investment to protect themselves against financial instability. However, not all investment opportunities are created equal. In recent years, there have been cases of companies taking advantage of elderly people by scamming them into buying precious metals at inflated prices. One such company is Safeguard Metal LLC.
According to the regulators’ complaint, Safeguard Metals LLC and its owner, Jeffrey Santulan, allegedly lured investors with false and misleading statements to get them to sell their existing securities and transfer the proceeds into self-directed individual retirement accounts to be invested in gold and silver coins. The scam starts with a phone call from a sales representative who offers the elderly person a “once in a lifetime” investment opportunity. The sales representative claims that the coins they are selling are rare and valuable and that they will increase in value over time. According to the SEC, Safeguard marketed itself as a full-service investment firm with offices in London, New York City, and Beverly Hills that employed prominent individuals in the securities industry and had $11 billion in assets under management. In reality, Santulan allegedly operated the company from a small leased space in a Woodland Hills, California office building using sales agents.
The SEC complaint further alleges that Safeguard’s sales agents used prepared scripts, some written by Santulan, filled with false and misleading statements about how the market would crash and how their retirement accounts would be frozen under a new ‘unpublicized’ law. Safeguard and Santulan also allegedly told investors that the firm’s commissions and markups on the coins ranged from 4% to 33%, when he actually charged average markups of approximately 64%.
The effects of these scams can be devastating for elderly people who have limited financial resources. Many victims lose their life savings and are left with no way to recover their money. The emotional toll of being scammed can also be significant, as victims may feel embarrassed or ashamed that they fell for the scam.
As the saying goes, “old habits die hard.” Unfortunately, this seems to be the case for Safeguard Metal, despite facing the consequences of their actions, Safeguard Metal has continued to engage in the same unethical practices, but under a new business name: Alliance Shield LLC.
According to reports, Alliance Shield LLC operates with the same purpose as Safeguard Metal LLC – to sell precious metal coins to elderly people at a much higher rate than the market value. This is an especially heinous crime since elderly individuals are often the most vulnerable and may not have the resources or knowledge to protect themselves from such scams.
This type of scam is not new, and it is common for scammers to target the elderly. These individuals may be less likely to report the crime or may not even realize they have been scammed. Unfortunately, the actions of companies like Safeguard Metal LLC and Alliance Shield LLC only serve to reinforce this trend, further victimizing an already vulnerable population.
To protect yourself and your loved ones from such scams, it is crucial to stay informed and educate yourself on the warning signs and look seek fraud advisory[in precious metal] from professionals if possible. The actions of Safeguard Metal LLC and Alliance Shield LLC are reprehensible and serve as a reminder of the importance of staying vigilant in protecting ourselves and our loved ones from scams. While it is disheartening to see that some companies continue to engage in such practices despite facing consequences, we can do our part to help prevent such crimes by staying informed and educating ourselves and others.