California brokerage agency Red Rock Secured was charged by the Securities and Exchange Commission with a fraud scheme to hawk over-priced gold and silver cash for retirement funding plans.

The firm, together with CEO Sean Kelly and two former executives, Anthony Spencer and Jeffrey Ward, are accused of convincing a whole lot of traders to promote securities of their retirement accounts in alternate for gold and silver coinage at inflated costs.

From January 2017 via at the very least June 2022, the defendants solicited traders, telling them to guard their financial savings by promoting belongings of their 401(okay), IRA or federal worker Thrift Savings Plan portfolios in alternate for the cash at a 1-5% markup.

The firm particularly focused older individuals with retirement accounts and right-wing political opinions, in line with an August 2020 e mail from a Red Rock Secured worker to a supplier of advert house cited within the SEC criticism.

The SEC claims that the marketed 1-5% markup was false and that the coin costs have been the truth is marked up as excessive as 130%, permitting the defendants to pocket greater than $30 million of the $50 million they acquired from shoppers.

In addition, claims that Red Rock Secured made about retirement plans have been additionally fallacious, akin to the concept all TSP investments are tied to the inventory market, in line with the SEC.

“As our complaint alleges, the defendants used fear and lies to defraud investors out of millions of dollars from their hard-earned retirement savings,” SEC New York Regional Office Director Antonia Apps mentioned.

The SEC is searching for a jury trial, civil penalties, a disgorgement of beneficial properties and to completely bar Mr. Kelly from serving as an officer or director of a public firm.

Red Rock Secured didn't reply to a request for remark.

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