State agency joins action against precious metals scheme
BISMARCK, N.D. (KVRR-KCND) – North Dakota’s Securities Department has joined an enforcement action to stop a fraudulent precious metals scheme that targets the elderly.
The complaint alleges Safeguard Metals, LLC promoted precious metals at grossly inflated prices. In this case, it was silver coins.
Securities Department chief investigator Michael Daley says the company convinced these people to move their retirement money out of 401K and Roth IRA retirement accounts, and into buying the coins. He says the melt value of the silver was far below the purchase price.
Daley says three North Dakota investors were defrauded out of approximately $178,000. Restitution is being sought through a federal lawsuit filed in California.
Daley says these kinds of scams are common.