2025-05-09 sec-litreleases litigation_release 66 KB 2,434 chars

SEC v. Safeguard Metals LLC; and Jeffrey Ikahn, No. LR-26307, Central District of California (May 9, 2025) — Press Release

raw: Safeguard Metals LLC and Jeffrey Ikahn (f/k/a Jeffrey S. Santulan)

Safeguard Metals LLC and Jeffrey Ikahn (f/k/a Jeffrey S. Santulan), No. 2:22-cv-00693 (May 9, 2025)

Caption
Securities and Exchange Commission v. Safeguard Metals LLC
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summary

The SEC obtained final judgment against Safeguard Metals LLC and Jeffrey Ikahn for operating a multi-million-dollar gold and silver coin scheme that defrauded elderly investors.

paragraph

Safeguard Metals LLC and its owner, Jeffrey Ikahn, were charged with acting as unregistered investment advisers and making misleading statements regarding the safety and liquidity of precious metal investments. The defendants were ordered to jointly and severally pay $25,569,303 in disgorgement, $4,821,263 in prejudgment interest, and $25,569,303 in civil penalties. These judgments resolve violations of the Investment Advisers Act of 1940 and the Securities Exchange Act of 1934.

narrative

The SEC obtained final judgments against California-based Safeguard Metals LLC and its owner, Jeffrey Ikahn, for a multi-million-dollar fraud targeting elderly investors. The scheme involved persuading clients to move existing securities into self-directed IRAs to purchase gold and silver coins under false pretenses regarding liquidity and safety. Additionally, the defendants misled investors about compensation, charging average silver coin markups of approximately 64%. The court permanently enjoined the defendants from violating antifraud provisions of the Investment Advisers Act and the Securities Exchange Act. To resolve the matter, the defendants must jointly and severally pay over $25.5 million in disgorgement, $4.8 million in interest, and $25.5 million in civil penalties. This enforcement action concludes a litigation process that began with charges filed in early 2022.

Enriched metadata

Scheme
investment-adviser-fraud (100%)
Court
Central District of California
Case No.
2:22-cv-00693
Disgorgement
$25,569,303
Entity
Safeguard Metals LLC
Classified investment-adviser-fraud(confidence 100%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →
Statutes
Sections 206(1) and 206(2) of the Investment Advisers ActSections 206(1) and 206(2) of the Investment Advisers ActSection 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionSafeguard Metals LLCJeffrey S. SantulanFreedom Shield CapitalJeffrey Ikahn
Keywords
safeguardsafeguard ikahnikahnjeffreysafeguard metalsjeffrey ikahnsecurities exchangesecuritiesikahn jeffreyjeffrey santulanexchange commissiongold silversilver coinsinvestorsmetals

Exhibits & Attached Documents (2)

Extracted insights

Dollar amounts 2
  • $25.57M $25,569,303 $10M–$100M
  • $4.82M $4,821,263 $1M–$10M
Entities 4
  • agency jedediah b. forkner and jean m. javorski of the sec's chicago regional office
  • person jonathan s. polish
  • agency Securities and Exchange Commission
  • person unregistered investment advisers
Triples 9
  • Securities And Exchange Commission obtained final judgments against California-based Safeguard Metals LLC and its owner, Jeffrey Ikahn of Tarzana, California
  • Securities And Exchange Commission charged Safeguard Metals LLC and Jeffrey Ikahn with operating a multi-million-dollar fraudulent scheme involving the sale of gold and silver coins to hundreds of elderly investors
  • Safeguard Metals LLC and Jeffrey Ikahn acted as unregistered investment advisers
  • Safeguard Metals LLC and Jeffrey Ikahn persuaded investors to sell their existing securities, transfer proceeds into self-directed Individual Retirement Accounts, and invest in gold and silver coins using false and misleading statements
  • Safeguard Metals LLC and Jeffrey Ikahn misled investors about Safeguard’s commissions and markups on the coins, charging average markups of approximately 64% on silver coin sales
  • The Court entered partial judgments by consent against Safeguard Metals LLC and Jeffrey Ikahn
  • The Court ordered Safeguard Metals LLC and Jeffrey Ikahn to pay jointly and severally $25,569,303 in disgorgement, $4,821,263 in prejudgment interest, and $25,569,303 in civil penalties
  • Securities And Exchange Commission conducted investigation by Jedediah B. Forkner and Jean M. Javorski of the SEC's Chicago Regional Office
  • Securities And Exchange Commission led litigation by Jonathan S. Polish
PDF (from attached: judgment)
Ikahn (“Defendant”) having entered a general appearance; consented to the Court’s jurisdiction over · Source
Text layers
Extracted body text (2,434c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No.26307 / May 9, 2025 Securities and Exchange Commission v. Safeguard Metals LLC and Jeffrey Ikahn (f/k/a Jeffrey S. Santulan), No. 2:22-cv-00693 (C.D. Cal. filed Feb. 1, 2022; amended complaint filed Apr. 5, 2023) SEC Obtains Final Judgment Against California Company and Its Owner Who Defrauded Elderly Investors in Gold and Silver Coin Scheme On May 2, 2025, the Securities and Exchange Commission obtained final judgments against California-based Safeguard Metals LLC and its owner, Jeffrey Ikahn of Tarzana, California. In 2022, the SEC charged Safeguard and Ikahn with operating a multi-million-dollar fraudulent scheme involving the sale of gold and silver coins to hundreds of investors who were at or near retirement age. The SEC’s amended complaint, filed in the Central District of California, alleged that Safeguard and Ikahn acted as unregistered investment advisers and persuaded investors to sell their existing securities, transfer the proceeds into self-directed Individual Retirement Accounts, and invest the proceeds into gold and silver coins by making false and misleading statements about the safety and liquidity of the investors’ securities holdh3ings, Safeguard’s business, and its compensation. According to the amended complaint, Safeguard and Ikahn also misled investors about Safeguard’s commissions and markups on the coins, charging average markups of approximately 64% on its sales of silver coins. On June 14, 2023, the Court entered partial judgments by consent against Safeguard and Ikahn. The partial judgments permanently enjoined Safeguard and Ikahn from violating the antifraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court’s final judgments ordered Safeguard and Ikahn to pay, jointly and severally, $25,569,303 in disgorgement of ill-gotten gains, $4,821,263 in prejudgment interest, and $25,569,303 in civil penalties. The SEC's investigation was conducted by Jedediah B. Forkner and Jean M. Javorski of the SEC's Chicago Regional Office, and was supervised by Anne C. McKinley. The litigation was led by Jonathan S. Polish. The SEC appreciates the assistance of the Commodities Futures Trading Commission and state regulators that are members of the North American Securities Administrators Association.
OCR text (2,434c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No.26307 / May 9, 2025 Securities and Exchange Commission v. Safeguard Metals LLC and Jeffrey Ikahn (f/k/a Jeffrey S. Santulan), No. 2:22-cv-00693 (C.D. Cal. filed Feb. 1, 2022; amended complaint filed Apr. 5, 2023) SEC Obtains Final Judgment Against California Company and Its Owner Who Defrauded Elderly Investors in Gold and Silver Coin Scheme On May 2, 2025, the Securities and Exchange Commission obtained final judgments against California-based Safeguard Metals LLC and its owner, Jeffrey Ikahn of Tarzana, California. In 2022, the SEC charged Safeguard and Ikahn with operating a multi-million-dollar fraudulent scheme involving the sale of gold and silver coins to hundreds of investors who were at or near retirement age. The SEC’s amended complaint, filed in the Central District of California, alleged that Safeguard and Ikahn acted as unregistered investment advisers and persuaded investors to sell their existing securities, transfer the proceeds into self-directed Individual Retirement Accounts, and invest the proceeds into gold and silver coins by making false and misleading statements about the safety and liquidity of the investors’ securities holdh3ings, Safeguard’s business, and its compensation. According to the amended complaint, Safeguard and Ikahn also misled investors about Safeguard’s commissions and markups on the coins, charging average markups of approximately 64% on its sales of silver coins. On June 14, 2023, the Court entered partial judgments by consent against Safeguard and Ikahn. The partial judgments permanently enjoined Safeguard and Ikahn from violating the antifraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court’s final judgments ordered Safeguard and Ikahn to pay, jointly and severally, $25,569,303 in disgorgement of ill-gotten gains, $4,821,263 in prejudgment interest, and $25,569,303 in civil penalties. The SEC's investigation was conducted by Jedediah B. Forkner and Jean M. Javorski of the SEC's Chicago Regional Office, and was supervised by Anne C. McKinley. The litigation was led by Jonathan S. Polish. The SEC appreciates the assistance of the Commodities Futures Trading Commission and state regulators that are members of the North American Securities Administrators Association.

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