CFTC and State Regulators File Suit against Metals.com
From the Desk of Jim Eccleston at Eccleston Law LLC:
On September 22, 2020, the Commodity Futures Trading Commission (“CFTC”) along with state regulators from 30 states filed a civil action against TMTE Inc., doing business as Metals.com, along with Barrick Capital and Barrick’s principals Lucas Asher and Simon Batashvili. Tower Equity was also charged as a relief defendant. According to the complaint, the defendants defrauded elderly investors of $185 million in a scheme involving precious metals. This case is the largest joint filing between state regulators and the CFTC.
According to the complaint, the scheme involved at least 1,600 victims, and allegedly began in September 2017. The complaint alleged that the defendants charged fraudulent prices to purchase precious metals bullion. The complaint also stated that the misconduct is “particularly egregious” because the defendants targeted victims between 60 and 90 years old. According to the complaint, the defendants targeted victims who were Christian and politically conservative.
The defendants’ assets have been frozen by a federal court order. The CTFC is seeking restitution as well as monetary penalties. State regulators will continue to monitor for fraudulent schemes involving precious metals, and believe that more such schemes may exist.
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
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