Galvin says retirees led astray with investment in gold and silver coins
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Regulator charges firm with persuading six investors to liquidate retirement accounts to buy precious metals.
Massachusetts securities regulator William F. Galvin has charged TMTE Inc., a Wyoming corporation also known as Metals.com, with persuading at least six investors to liquidate their retirement accounts in order to purchase gold and silver coins, while collecting markup fees in the range of 53%-63%.
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According to the complaint, the six Massachusetts investors experienced a total decline in their investments of more than $1.7 million.
The complaint states that two investors, a married couple approaching retirement, lost more than $1.5 million immediately after TMTE used their retirement savings in order to purchase silver, according to a press release from Mr. Galvin’s office.
The complaint goes on to say that though the same two investors were initially hesitant to invest in precious metals, the couple verbally agreed to open IRAs to hold precious metals with a minimum account size of $500, according to the press release. Despite this verbal agreement, TMTE used blank forms signed by the investors to facilitate the total liquidation of both investors’ retirement accounts, the release states.
The state is seeking an order to require TMTE to disgorge all profits relating to the wrongdoing illustrated in the complaint and provide restitution to the investors.
It also wants TMTE to be fined and permanently barred from advising Massachusetts residents to sell securities in order to purchase precious metals.
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