Safeguard Metals Precious Metals False Investment and Price Fraud Senior Scam

Who Gets Targeted

Victims are primarily American seniors over the age of 60 who possess retirement savings and feel anxious about inflation and financial market volatility. They generally lack professional knowledge of spot precious metals trading pricing mechanisms, are easily swayed by pitches such as 'safe-haven assets' and 'inflation hedge,' and develop trust in individuals claiming to be 'precious metals investment advisors' over the phone. Some victims live alone or are socially isolated, eager to secure their later years through stable investments, and make impulsive decisions under repeated urging and 'limited-time offer' pressure, finding it difficult to independently verify counterparties and fair market prices.

骗局怎么运作

• Step 1: Casting a wide net via phone to screen potential senior clients. Sales representatives purchase or rent senior contact lists, making calls with lures such as 'Free Precious Metals Investment Guide' or 'Retirement Asset Safe-Haven Report' to preliminarily determine whether the other party has disposable retirement account funds, and marking seniors who express concerns about inflation or stock market risks as high-priority follow-up targets.
• Step 2: Impersonating professional advisors to build trust and create a sense of urgency. Sales reps use titles like 'Senior Precious Metals Strategist' or 'Retirement Protection Expert,' repeatedly emphasizing risks such as economic collapse, US dollar depreciation, and bank bankruptcy, claiming that only physical precious metals can safeguard retirement savings, and urging seniors to make decisions quickly by declaring that 'gold prices are about to surge and entering the market now is the most cost-effective.'
• Step 3: Inducing the transfer of retirement account funds into a self-directed IRA and purchasing overpriced metals. Sales agents guide seniors to open a self-directed individual retirement account, transfer funds from their existing retirement accounts into it, and then sell physical precious metals such as silver and gold coins at prices far above fair market value, falsely claiming these are secure 'IRA-eligible precious metals investments.'
• Step 4: Generating exorbitant profits through inflated pricing and concealed markups. During the sales process, they intentionally conceal the true prices of similar metals in the public market at the same time, selling ordinary silver coins to clients at three to four times the market price—for example, silver coins with a market price of around $20-plus per ounce are priced at over $70, with the price difference directly translating into company profits, making it difficult for clients to break even even when holding the physical items due to an excessively high purchase price.
• Step 5: Post-sale delaying and obstructing clients from discovering the truth under the pretext of 'long-term holding.' When clients inquire about liquidation or price comparisons, sales staff continue to placate them with talking points such as 'the market will bounce back' and 'selling now means taking a loss.' Some customer service representatives refuse to provide itemized transaction prices compared with market benchmark prices until clients conduct independent research or family members intervene and discover they have been scammed.

红旗信号（看到这些快跑）

• 🚩 A stranger claiming to be a 'precious metals strategist' or 'retirement protection expert' contacts you unsolicited and demands that you immediately transfer your retirement account funds
• 🚩 Refusal to provide written price quotes compared against public market benchmarks, verbally emphasizing only that 'this is the cheapest now' or 'prices are rising immediately'
• 🚩 Sales prices significantly higher than the day's quote, such as silver coin prices reaching more than three times the market price
• 🚩 Urging you to roll over a traditional IRA or 401(k) into a self-directed IRA and purchase designated precious metals, claiming there are no fees or risks
• 🚩 The company accepts only wire transfers or retirement account rollovers, unwilling to provide verifiable pricing bases from exchanges, the London Bullion Market Association, etc.
• 🚩 Sales personnel evade your requests to discuss the matter with family or an independent financial advisor, applying pressure that 'it will be gone if you miss today'

真实案例

• In June 2022, New York Attorney General James filed a lawsuit against Safeguard Metals and its owner, accusing the company of defrauding elderly investors across the US of approximately $68 million through false statements and high-priced precious metals sales, with victims mostly being retirees.
• The complaint disclosed that an elderly investor was induced to transfer retirement account funds into a self-directed IRA and purchase silver coins at prices far exceeding market value, paying about four times the fair market price, with the actual precious metals value far below the amount paid.
• Better Bullion noted in a 2026 review report on Safeguard Metals that the company faced regulatory penalties for alleged securities fraud and price fraud, and was banned from continuing precious metals sales in certain states.
• In October 2023, the U.S. Commodity Futures Trading Commission, joined by securities regulators from 30 states, announced that the U.S. District Court for the Central District of California entered a consent order against Safeguard Metals, finding that the company peddled silver coins to seniors at fraudulent high prices and executed a $68 million nationwide scam; the court ruled the fraud established and permanently banned it from trading registered with the CFTC and various states, with specific restitution and fine amounts left for subsequent determination. (Source: [https://www.cftc.gov/PressRoom/PressReleases/8812-23](https://www.cftc.gov/PressRoom/PressReleases/8812-23))
• In May 2025, the U.S. Securities and Exchange Commission announced it had obtained final judgments against Safeguard Metals and its principal: the court ordered joint and several payment of approximately $25.57 million in ill-gotten gains, approximately $4.82 million in prejudgment interest, and a $25.57 million civil penalty, totaling over $56 million; the SEC determined the company induced hundreds of near-retirement investors to liquidate securities, transfer funds into self-directed retirement accounts, and then push gold and silver coins at an average markup of about 64%. (Source: [https://sonnlaw.com/safeguard-metals-and-owner-jeffrey-santulan-fraudulent-scheme/](https://sonnlaw.com/safeguard-metals-and-owner-jeffrey-santulan-fraudulent-scheme/))

Official Stance

• In June 2022, the New York State Attorney General's Office issued an announcement declaring a lawsuit against Safeguard Metals and its owner for defrauding seniors of $68 million, and reminded the public to be vigilant against precious metals sales cold calls.
• In 2026, financial regulatory departments in multiple regions across China listed practices similar to 'selling physical gold at high prices to seniors' as typical scams in gold investment risk warnings, reminding consumers not to blindly trust precious metals investment advice from unsolicited phone calls.
• The China Banking and Insurance Regulatory Commission and local financial supervision bureaus have repeatedly issued risk warnings, requiring elderly investors to verify counterparty qualifications and market prices before purchasing precious metals, and to guard against pitches such as 'guaranteed principal with high returns' and 'exclusive for safe havens.'

How to Protect Yourself

• ✅ Hang up directly when receiving unsolicited precious metals sales calls, and do not disclose retirement account balances, banking information, or home addresses
• ✅ Before purchasing any precious metals, check the day's prices from the London Bullion Market Association, New York Mercantile Exchange, or Shanghai Gold Exchange, and demand itemized written quotes
• ✅ Do not transfer retirement account funds immediately due to pressure from the other party; any operations involving an IRA or pension account should first be consulted with an independent registered financial advisor or family members
• ✅ Beware of so-called commemorative or limited-edition coins priced 'far above market price'; the prices of ordinary investment silver and gold coins should be close to spot prices without multiple markups
• ✅ If precious metals have already been purchased via phone, retain all call logs, emails, and transfer receipts, and file a complaint with state securities regulators or the Attorney General's Office