Galvin says retirees led astray with investment in gold and silver coins

Galvin says retirees led astray with investment in gold and silver coins
Regulator charges firm with persuading six investors to liquidate retirement accounts to buy precious metals.
DEC 03, 2019
By  Bloomberg
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%. [Recommended video:2020 adviser outlook: Focus on managing client expectations] 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.

Latest News

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

iCapital secures $820M in latest funding, hits $7.5B
iCapital secures $820M in latest funding, hits $7.5B

The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

What does it take to feel 'financially comfortable' or 'wealthy' in 2025?
What does it take to feel 'financially comfortable' or 'wealthy' in 2025?

New report shines a light on how Americans view wealth today.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.