CFTC, 30 State Regulators Obtain Over $51 Million in Sanctions, Restitution for Victims in California Precious Metals Fraud

WASHINGTON — The U.S. District Court for the Central District of California has entered a final judgement against Safeguard Metals LLC and Jeffrey Ikahn (aka Jeffrey Santulan and Jeffrey Hill) ordering them to pay $25.6 million in restitution to victims and a $25.6 million civil monetary penalty for operating a nationwide, precious metals fraud, according to The Commodity Futures Trading Commission. The CFTC obtained the order Sept. 30 in coordination with 30 state securities regulatory agencies that are members of the North American Securities Administrators Association. “This resolution shows the impact the CFTC and state regulatory agencies have when joining forces to combat fraud and is a testament to the hard work of staff at the CFTC and our state regulator co-plaintiffs,” said Charles Marvine, Acting Chief of the Division of Enforcement’s Retail Fraud and General Enforcement Task Force. Previously, the court entered a consent order that found the defendants liable for running a nationwide fraudulent scheme that took in approximately $68 million from more than 450 customers – most of them elderly or retirement-aged. According to the order, the defendants lured customers with false claims about the risk of their traditional retirement investments and then sold them silver coins and other precious metals at inflated prices by misrepresenting their price markups. These undisclosed markups caused customers substantial and immediate losses. The consent order also barred the defendants from future violations of the Commodity Exchange Act and CFTC regulations, as well as various state laws and regulations as charged in the complaint. It further prohibited them from trading or registering with the CFTC and the participating states. These rulings resolve the CFTC and state regulators’ February 2022 enforcement action. [See CFTC Press Release No. 8489-22]. In a separate case brought by the Securities Exchange Commission, the court ordered the defendants to pay $25.6 million in disgorgement and a $25.6 million civil monetary penalty SEC v. Safeguard Metals, Case No. 2:22-cv-00693 JFW (C.D. Cal. May 2, 2025). Amounts paid in either the SEC or CFTC actions will be offset by the amounts owed in the other. Orders requiring repayment to victims may not always result in the recovery of any or all funds, as wrongdoers may lack sufficient assets. The agency will continue to fight vigorously to protect customers and hold wrongdoers accountable. The CFTC and NASAA thank the SEC for its help.