Silver Law Group And Weinberg, Wheeler, Hudgins, Gunn & Dial Win $1,060,000 Arbitration Award For Precious Metals Victim

Silver Law Group and Weinberg, Wheeler, Hudgins, Gunn & Dial (Weinberg Wheeler) recently won an arbitration award on behalf of an investor who suffered substantial losses investing in precious metals purchased through Safeguard Metals. After a week-long evidentiary hearing, the client was awarded more than $1,060,000, with interest accruing at over $100,000 per year. This represents a substantial recovery of virtually all of the investor’s losses.

A copy of the award can be reviewed here – C.W. v. Safeguard Metals and Santulan Award.
Amongst other findings, the arbitrator found that Respondent Safeguard and Santulan are alter egos and the award is joint and several between them. As the owner of Safeguard Metal’s, the arbitrator found that “Santulan developed and implemented Safeguard’s business plan” which Claimant’s alleged was akin to a boiler room operation.

Safeguard Metals is a California-based company that sells precious metals to investors, often alleging the coins are “rare” or numismatic coins, as purported retirement investments. Safeguard’s website pitches the investments as a way to “hedge against uncontrolled government spending and dizzying money printing by the Federal Reserve.” Safeguard has also been sued by the United States Commodities Futures Trading Commission (the “CFTC”), the United States Securities and Exchange Commission (the “SEC”), and 27 state securities regulators.  Similar to Silver Law Group and Weinberg Wheeler, these regulators allege, among other things:

• Safeguard “acted as investment advisers and persuaded investors to sell their existing securities, transfer the proceeds into self-directed Individual Retirement Accounts (“SDIRAs”), and invest the proceeds in gold and silver coins by making false and misleading statements . . .”
• Safeguard “targeted investors who were at or near retirement age . . .”
• “Safeguard obtained approximately $67 million from the sale of coins to more than 450 elderly, retail investors . . .”

Silver Law Group and Weinberg Wheeler’s client was encouraged to invest for his retirement but instead suffered substantial losses primarily due to complex and hidden fees, commissions, and/or undisclosed markups. As a result, the investor’s retirement was completely upended.

Silver Law Group and Weinberg Wheeler are continuing to investigate and pursue potential claims on behalf of numerous other investors against Safeguard Metals.  Our attorneys are also representing investors in several other precious metal fraud cases including many cases involving companies not properly registered with the CFTC or offering leveraged trading programs with undisclosed fees that frequently lead to disaster for the retail investor.

Precious Metal Fraud Attorneys

Our attorneys represent investors who allege precious metal sales agents assured them these investments were safe and the agents were professionals who would act in the clients’ best interest. The claimants’ allegations include claims for violations of the Commodity Exchange Act, fraud, and negligent misrepresentation. Amongst other misrepresentations, the investors allege that Safeguard Metals misrepresented the value of the coins at the time of purchase, the experience (or lack thereof) of the agents, and failure to disclose material facts including the fees and commissions charged.

Our attorneys have significant experience recovering investor money due to misconduct by precious metals firms such as Safeguard Metals. If you suffered losses and would like a confidential consultation with an investment fraud attorney with passion and experience advocating for aggrieved investors, call Silver Law Group toll free at (800) 975-4345 or email [email protected].

Tags: investment fraud recovery, securities arbitration, precious metals fraud, Precious Metals