October 17, 2025
The final judgment against Safeguard Metals LLC and Jeffrey Ikahn orders restitution and a civil monetary penalty; underscores commitment to protect seniors from investment fraud
Salt Lake City—Utah’s Department of Commerce’s Division of Securities (Division), represented by the Office of the Utah Attorney General (OAG), today announced that the U.S. District Court for the Central District of California recently entered a final judgment imposing approximately $25.6 million in restitution and an equal civil monetary penalty against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for operating a fraudulent scheme targeting elderly and retirement-aged individuals.
The judgment stems from a fraudulent investment scheme involving precious metals, conducted by the defendants from October 2017 through at least July 2021. According to the allegations in the amended complaint, Safeguard Metals made materially false and misleading statements to customers about the risk and safety of their traditional retirement accounts to “instill fear” and convince them to buy precious metals; defrauded customers into transferring proceeds from their retirement accounts to purchase precious metal;; and convinced some customers to purchase precious metals through cash and credit sales, among other things.
The consent order also prohibited the defendants from future violations of the Commodity Exchange Act and state laws and regulations, as detailed in the amended complaint.“The Safeguard Metals scheme was a deplorable fraud targeting Utah investors, particularly Utah’s seniors, with promises of safe investments in rare metals. This resolution reinforces that the Division will take decisive action to protect Utah’s investors—especially those in vulnerable communities, such as our seniors,” said Robert B. Cummings, Director of the Division of Securities.
According to the court’s findings, the defendants solicited approximately $68 million, the majority of which was retirement savings, from at least 450 persons, including multiple Utahns who invested a total of roughly $374,498 in metals, primarily consisting of silver coins, from Safeguard Metals. One Utah investor, a senior citizen, purchased $200,000 in metals using funds from his thrift savings plan retirement account. The court found that the defendants systematically and widely disseminated false and misleading information, failed to communicate material facts to customers, and fraudulently overcharged Safeguard Metals’ customers for the precious metals they sold.
Specific allegations listed in the complaint include:
- Made false and misleading statements to customers about the risk and safety of their traditional retirement accounts to “instill fear” and convince them to buy precious metals.
- Defrauded customers into transferring proceeds from their retirement accounts, often consisting of funds from liquidated securities, to purchase precious metals.
- Convinced some customers to purchase precious metals through cash and credit sales.
- Misrepresented the size, scale, experience, background, and history of the firm, its agents, and its representatives.
- Misrepresented the markup/value of the silver coins.
- Sold gold coins that lacked external value beyond their melt value.
- Customers who purchased precious metals almost immediately suffered substantial losses, allegedly due to the fraudulently overpriced silver coins.
“This outcome, the result of a multi-state effort, is an important reminder that state securities regulators play a critical role in fighting investment fraud in all forms,” said Cummings.
The U.S. Securities and Exchange Commission (SEC) filed a parallel action against the same defendants in February 2022. The court entered partial judgments by consent in 2023 and in May 2025 ordered Safeguard and Ikahn to pay approximately $25.6 million in disgorgement (a legal remedy requiring a party to give up profits earned from illegal or wrongful acts and aims to return those gains to victims or to the government), an equal civil monetary penalty, and prejudgment interest. Any amounts paid in the SEC matter will be offset against any amounts paid in the judgment announced today and vice versa.
Utah participated in this case in partnership with the CFTC and state regulators from Alabama, Arizona, Arkansas, California, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Mississippi, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Vermont, Washington, and Wisconsin.
The Division, led by Robert Cummings, thanks the CFTC, Marilee L. Miller, Director of the OAG’s Division of Public Protection and Fraud, and Assistant Attorney General Jennifer Korb for their dedication and hard work.
The Division advises all those interested in investing in securities to start by verifying the advisor or brokerage’s license here.
