Ohio, Federal Regulators Halt Precious Metals Scam That Cheated Seniors Out of Millions

COLUMBUS, Ohio - The Ohio Department of Commerce Division of Securities announced today that the U.S. District Court for the Central District of California has 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 scheme conducted by the defendants from October 2017 through at least July 2021, during which time victims were provided false and misleading information in order to compel them to purchase fraudulently overpriced precious metals.

On October 25, 2023, 30 state regulators, including the Ohio Division of Securities, and the Commodity Futures Trading Commission (CFTC) announced a settlement with the defendants through a consent order that found the defendants liable for employing a nationwide scheme. The court order also said the defendants must not violate the Commodity Exchange Act in the future or any of the state laws and rules in the complaint.

According to the court's findings, the defendants solicited approximately $68 million, the majority of which was retirement savings, from at least 450 persons for the purpose of purchasing precious metals, primarily consisting of silver coins. In Ohio, 19 residents were defrauded in the scheme with losses totaling over $1 million.

"It is always heartbreaking to see fraudsters exploit elderly investors, robbing them of the lifetime savings they diligently set aside for a comfortable and dignified retirement," said Ohio Securities Commissioner Andrea Seidt. "The Ohio Division of Securities is resolute in its commitment to protecting investors from these predatory schemes. This judgment underscores our promise to pursue wrongdoers and hold them fully accountable for the harm they inflict on innocent Ohioans."

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, 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.

The case was brought by the CFTC in partnership with 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, Utah, Vermont, Washington, and Wisconsin.

"This outcome is an important reminder that state securities regulators play a critical role in fighting investment fraud in all forms," Seidt said.

###

About the Division of Securities
The Division of Securities is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.