The CFTC said Fisher Capital and Spellane used high-pressure sales pitches over the telephone to instill fear about the safety of traditional retirement and savings accounts, and deceived victims into purchasing grossly overpriced precious metals. The CFTC sought the return of what it termed the ill-gotten gains, civil monetary penalties, restitution, permanent registration bans, and permanent injunctions against further violations of the Commodity Exchange Act and CFTC regulations, as charged. (Reporting by Harshit Verma in Bengaluru; Editing by Matthew Lewis and Lincoln Feast)
April 25 (Reuters) - The Commodity Futures Trading
Commission (CFTC) on Tuesday filed a civil enforcement action
against Fisher Capital and its owner, Alexander Spellane,
alleging it perpetrated a precious metals investment fraud
targeting older adults.
The Los Angeles-based dealer of precious metals defrauded
"hundreds of elderly persons into investing more than $30
million in gold and silver coins worth far less than the
defendants led victims to believe," the agency said.
Denying the allegations made by the CFTC, Fisher Capital
said "we respectfully disagree with the charges made in the
complaint by the CFTC and plan to defend ourselves and defend
the free will of our clients to make their own financial
decisions."
Fisher Capital has "never targeted any specific demographic
nor sold precious metals for fraudulent gain as this complaint
wrongfully alleges," the company said in an emailed statement to
Reuters.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.