Twelve state securities regulators have taken action against Metals.com, a Beverly Hills, Calif.-based firm accused by multiple states of targeting older individuals to convince them to liquidate securities held with registered investment firms and use the proceeds to buy precious metals.
Two states, Texas and Colorado, reached agreements in which Metals.com is offering full rescission to residents in those states who purchased precious metals and opened a self-directed Individual Retirement Account for the assets.
2019 Regulatory Actions
Texas Timeline
May 1 Emergency Cease and Desist Order entered against TMTE Inc., known as Metals.com, two senior executives, and a saleswoman
May 7 Securities Commissioner Travis J. Iles denies May 6 request by Metals.com to stay the emergency order
May 14 State Office of Administrative Hearings sets Aug. 28-29 to hear Metals.com’s challenge to the order
July 1 Metals.com agrees to Order with rescission offer to 84 Texas investors and to strengthen company compliance and training
Minnesota
May 16 The Minnesota Department of Commerce entered a Consent Cease and Desist Order against TMTE, Inc., Metals.com, Chase Metals, LLC, and Chase Metals, Inc.
Colorado
July 12 Colorado Securities Commissioner issues Consent Cease and Desist Order naming Metals.com, TMTE Inc., Chase Metals, and Access Unlimited Inc.
Georgia
July 30 Georgia Commissioner of Securities enters Emergency Cease and Desist Order against Metals.com, Walter Vera, Athena Hunter, and Samara Mills, and levies a $500,000 fine against the named parties
Alabama
Aug. 8 Alabama Securities Commission enters Cease and Desist Order against TMTE Inc., Metals.com, Chase Metals, and four agents of Metals.com
Kentucky
Sept. 6 Kentucky Department of Financial Institutions enters Emergency Cease and Desist Order against TMTE Inc., Metals.com, Chase Metals, and four sales representatives of Metals.com
Missouri
Nov. 1 Missouri Commissioner of Securities enters Cease and Desist Order against TMTE Inc., Metals.com, and Walter Vera for allegedly misleading 13 Missouri residents into investing $1.4 million in gold and silver. Vera and Metals.com ordered to show cause why they should not have to pay restitution plus interest, civil penalties, and investigation costs of $1.4 million.
Massachusetts
Dec. 3 The Enforcement Division of the Massachusetts Securities Division filed an administrative complaint against TMTE Inc. a/k/a Metals.com, Chase Metals LLC, TEM Inc., and Access Unlimited LLC for acting as an unregistered investment adviser and engaging in fraud in connection with the sale of gold and silver coins to Massachusetts residents.
2020 Regulatory Action
Arkansas
March 9 The Arkansas Securities Department entered a Cease and Desist Order against Metals.com a/k/a TMTE Inc. a/k/a Chase Metals Inc. a/k/a Chase Metals LLC.
Nevada
May 26 The Nevada Securities Division of the Office of Secretary of State entered a Complaint for Summary Order and Final Order to Cease and Desist And Other Appropriate Relief and a Notice of Summary Order to Cease and Desist, Intended Action, and Opportunity for Hearing against TMTE, Inc., a/k/a Metals.com a/k/a Chase Metals, Inc., a/k/a Chase Metals, LLC; and Athena Hunter.
Montana
June 4 The Securities & Insurance Office of the Montana State Auditor ented a Notice of Proposed Agency Action and Opportunity for Hearing and a Temporary Cease and Desist Order against TMTE, Inc. aka ChaseMetals.com, Metals.com, Chase Metals, LLC, and Chase Metals, Inc.
Alaska
July 20 The Alaska Division of Banking and Securties of the Department of Commerce, Community, and Economic Development entered a Temporary Cease and Desist Order Effective Immediately, Assessing Civil Penalties and Notice of Final Order against TMTE, Inc., aka Metals.com; Chase Metals, Inc; Walter Vera; Athena Hunter; Sean Reza; Jonathan Sachs; David Bleeden; and Randall Kohl.
2020 Civil Actions
Multistate
September 22 The CFTC and 30 states filed a Complaint for Injunctive Relief, Civil Monatary Penalites, and Other Equitable Relief against TMTE, Inc. a/k/a Metals.com, Chase Metals, Inc., Chase Metals, LLC, Barrick Capital, Inc., Lucas Thomas Erb a/k/a Lucas Asher a/k/a Luke Asher, and Simon Batashvili and Tower Equity, LLC as a Relief Defendant. A Bench Memorandum was also filed and an Order Granting Plaintiffs' Emergency Ex Parte Motion for Statutory Restraining Order, Appointment of Receiver, and Other Equitable Relief was granted.