Statement Summary
The U.S. Securities and Exchange Commission (SEC) has secured final judgments against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for defrauding elderly investors in a multi-million-dollar scheme involving gold and silver coins. Charged in February 2022, Safeguard and Ikahn misled investors into selling their securities and investing in coins by presenting false information about safety and liquidity. They inflated their profits significantly, charging around 64% markups on silver coin sales. As a result, the court ordered them to pay over $56 million in penalties and disgorgement of profits. This case highlights the SEC’s commitment to protecting investors, particularly vulnerable populations like retirees.
Original Statement
Safeguard Metals LLC and Jeffrey Ikahn (f/k/a Jeffrey S. Santulan)
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 Actions
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 holdings, 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.
