If you are a business that sells precious metals over the phone, you need to take the proper steps toward implementing compliance policies and procedures.
What are the risks involved in precious metals sales?
In the last two years, an influx of enforcement matters has been seen, with the CFTC and SEC coming after Precious Metal companies.
CFTC v. TMTE, Inc. a/k/a Metals.com. et al. (the "Defendants"); Case No 3:20-cv-02910-X (N.D. Tex).
CFTC v. Safeguard Metals LLC and Jeffrey Ikahn (a/k/a Jeffery Santulan and Jeff Hill, the "Defendants"), Case No. 2:22-cv-00691-JFW-SK (C.D. SEC v. Safeguard Metals LLC and Jeffrey Ikahn (a/k/a Jeffery Santulan and Jeff Hill, the "Defendants"), Case No. 2:22-cv-00693-JFW-SK (C.D. Cal).
CFTC v. Red Rock Secured, LLC, Sean Johnson-Kelly, and Anthony Spencer (the "Defendants"), Case No. 2:23-cv-03680-RGK-PVC (C.D. Cal).
SEC v. Red Rock Secured, LLC, Sean Johnson-Kelly, and Anthony Spencer (the "Defendants"), Case No. 2:23-cv-03682-RGK-PVC (C.D. Cal).
The common theme in all these lawsuits is claims that the precious metals company violated federal, state, and securities regulations related to the verbiage used in marketing, sales practices, and non-compliant procedures.
As a precious metals company, it is important that you implement policies and practices to reduce or mitigate the risks associated with selling precious metals over the phone.
Cosgrove Law Group, LLC (“CLG”) has experience implementing and assisting businesses in compliance. CLG offers compliance presentation and training, audit call programs, and telemarketing/state registrations and can be retained to answer specific questions about your business.
If you are a precious metals retailer and want to discuss compliance training and opportunities, please get in touch with one of our attorneys at (314) 563-2490.