Safeguard Metals Liable for $51.2M Fraud Against 450 Investors

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Filed October 23rd, 2025

Detected March 17th, 2026

Summary

Safeguard Metals LLC and its owner Jeffrey Ikahn have been ordered to pay $51.2 million in restitution and penalties for defrauding 450 elderly investors nationwide in a precious metals scheme. The judgment includes $25.6 million in restitution to victims and an equal monetary penalty split between the CFTC and 30 state regulators.

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What changed

Safeguard Metals LLC and its owner, Jeffrey Ikahn, have been found liable for defrauding 450 elderly investors nationwide out of approximately $68 million in a precious metals scheme. A judgment has been entered requiring them to pay $51.2 million, comprising $25.6 million in restitution to victims and an equal $25.6 million penalty. This penalty will be divided between the U.S. Commodity Futures Trading Commission (CFTC) and 30 state regulators, including New Mexico, which had six investors lose $2.2 million. The fraud involved convincing victims to liquidate retirement accounts to purchase overpriced metals and coins, with Safeguard generating substantial markup fees.

This enforcement action, stemming from a consent order in October 2023 and parallel actions by the SEC, highlights the risks associated with precious metals schemes targeting vulnerable populations. Regulated entities, particularly those dealing with retirement savings or precious metals, should review their sales practices and disclosures to ensure compliance with anti-fraud provisions. While this judgment resolves the matter for Safeguard Metals and Ikahn, the restitution and penalties underscore the severe consequences of fraudulent conduct, including significant financial penalties and restitution orders. Investors who believe they may have been victims should contact the Securities Division or relevant regulatory bodies.

What to do next

Review sales practices and disclosures related to precious metals investments.
Ensure compliance with anti-fraud provisions for vulnerable investor populations.

Penalties

$51.2 million in restitution and penalties ($25.6 million restitution, $25.6 million penalty split between CFTC and state regulators)

Source document (simplified)

Safeguard Metals liable for $51 million in precious metals fraud

Company defrauded 450 elderly investors nationwide

SANTA FE – Safeguard Metals LLC and its owner Jeffrey Ikahn will pay $51.2 million in restitution and penalties for defrauding 450 elderly investors out of retirement savings in a precious metals scheme, state and federal regulators announced today.

The judgment against Safeguard Metals and Ikahn includes $25.6 million in restitution to victims and an equal monetary penalty that will be divided between the U.S. Commodity Futures Trading Commission (CFTC) and 30 state regulators, including New Mexico.

Six New Mexico investors purchased $2.2 million in the scheme, which ran from October 2017 to July 2021. The defendants convinced victims to liquidate their retirement accounts to purchase overpriced metals and coins, generating approximately $68 million for Safeguard, including $25.5 million in markup fees.

“Six New Mexico families invested $2.2 million in retirement savings to this scheme,” said Alissa Berger, Securities Division attorney and lead counsel for New Mexico on the Safeguard Metals litigation. “This judgment sends a clear message: if you target elderly investors in our state, we will pursue every avenue to hold you accountable.”

In October 2023, the CFTC and 30 state regulators announced a settlement through a consent order that found the defendants liable for the fraud. The court found that defendants disseminated false and misleading information, failed to communicate material facts to customers and fraudulently overcharged customers for the precious metals they sold.

The U.S. Securities and Exchange Commission filed a parallel action against the same defendants in February 2022. The court entered partial judgments by consent in 2023 and in May 2025, ordering Safeguard and Ikahn to pay approximately $25.6 million in restitution, 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 and vice versa.

New Mexico residents who have questions about this settlement should contact the Securities Division at 505-476-4580 or online at www.rld.nm.gov/securities-division.