AG Fitch, Secretary Watson aim to protect seniors from precious metals scheme

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JACKSON, Miss. (WJTV) – Mississippi Attorney General Lynn Fitch and Secretary of State Michael Watson joined the Commodity Futures Trading Commission (CFTC) and 29 other states in filing a complaint in the U.S. District Court for the Northern District of Texas. They allege Metals.com and Barrick Capital Inc. defendants solicited $185 million from 1,600 seniors and other vulnerable investors nationwide, including over $350,000 in Mississippi, by touting precious metals at grossly inflated prices that were not disclosed.

“The defendants were preying on seniors and other vulnerable persons, grossly misrepresenting the value and likelihood of financial profit of the investments they were selling and scamming consumers out of their retirement savings,” said Fitch. “I appreciate the work of the Secretary of State in this matter, and we will continue to work together to protect the rights of Mississippi consumers.”

The complaint names Los Angeles, California-based companies TMTE Inc., also known as Metals.com, Chase Metals Inc., Chase Metals LLC, Barrick Capital Inc., along with Simon Batashvili, Lucas Asher, and Tower Equity LLC. The defendants are accused of using cold calling, television, radio, and social media advertisements designed to “instill fear in elderly and retirement-aged investors and build trust with investors based on representations of political or religious affinity.” Investors were advised to liquidate their holdings at registered investment firms to fund investments in precious metals bullion through self-directed individual retirement accounts and bullion coins, the complaint said.

The defendants also are accused of failing to disclose, among other things, the markup Metals.com and Barrick charged investors for their precious metals bullion products and that investors could lose the majority of their funds immediately upon completing a transaction. Prosecutors said the defendants charged investors prices for gold or silver bullion averaging from 100% to more than 300% the melt value or spot price of that gold or silver bullion. In many cases, the market value of the precious metals sold to investors was substantially lower than the value of the securities and other retirement savings investors had liquidated to fund their purchase.

“They capitalized on investors’ fear of market instability and took advantage of hard-working Mississippians,” said Watson. “Our investors suffered consequential losses from retirement savings, and it’s only right that we take action. We’re working closely with the Attorney General’s Office to ensure the victims of this case receive justice, and we encourage all investors to thoroughly scrutinize and research any investment opportunity or offer.”

The complaint requests the Court order the defendants to cease sales activity, return money to investors, and stop defrauding investors and violating federal and state laws going forward. The complaint also requests that a receiver be appointed to take over the companies to marshal funds for the benefit of investors across the country.

If you suspect you have been targeted by similar precious metals investment schemes, please contact the Mississippi Attorney General’s Securities Division at (601)359-1334.

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