Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—C.D. Cal.: CFTC and 30 States secure over $51M judgment in nationwide precious metals fraud, (Nov 20, 2025)

By Elena Eyber, J.D.

The coordinated federal–state action delivers substantial restitution and penalties against Safeguard Metals and its owner for deceiving hundreds of mostly elderly investors.

The U.S. District Court for the Central District of California has entered a final judgment requiring Safeguard Metals LLC and its owner, Jeffrey Ikahn, to pay $25.6 million in restitution and an equal amount in civil penalties for a nationwide precious-metals fraud. The ruling, obtained by the CFTC in partnership with 30 state securities regulators, culminates a multiyear effort to return funds to victims and hold the defendants accountable. As Acting Enforcement Chief Charles Marvine noted, “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.” (CFTC v. Safeguard Metals LLC, No. 2:22-cv-00691-JFW-SKx (C.D. Cal. Sept. 30, 2025)).

The judgment follows an earlier consent order finding that Safeguard Metals and Ikahn orchestrated a fraudulent scheme that raised roughly $68 million from more than 450 customers, many of whom were elderly or retirement-age. The defendants allegedly scared investors about the safety of traditional retirement accounts, then sold them silver coins and other metals at steep, undisclosed markups. These inflated prices caused immediate and significant losses to customers. The consent order also barred the defendants from future violations of the Commodity Exchange Act, CFTC regulations, and relevant state laws, and prohibited them from trading or registering with the CFTC or participating states.

These decisions bring to a close the CFTC and state regulators’ joint enforcement action filed in February 2022. In a parallel case brought by the SEC, the court ordered the defendants to pay $25.6 million in disgorgement and an equivalent civil penalty, with payments in one action offset against obligations in the other. Although full recovery is not guaranteed, the agencies emphasized their commitment to protecting customers and pursuing fraudsters. The CFTC and NASAA also expressed appreciation to the SEC for its assistance, underscoring the importance of coordinated regulatory action in addressing nationwide investment schemes.

The case is No. 2:22-cv-00691-JFW-SKx.

Judge: Walter, J.

Attorneys: Jonmarc Philip Buffa for the CFTC. Catherine Sima Owens (Larson LLP) for Safeguard Metals LLC.

Companies: Safeguard Metals LLC

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