SACRAMENTO – The California Division of Monetary Safety and Innovation (DFPI), in partnership with the federal Commodity Futures Buying and selling Fee (CFTC), immediately filed a lawsuit in america District Court docket for the Central District of California centering on a $21 million fraudulent scheme that particularly focused prospects’ retirement financial savings. Regal Property LLC, and two particular person defendants, are alleged to have misappropriated these funds from greater than 120 prospects nationwide between November 2019 and October 2022.
Regal Property LLC, a Southern California-based treasured metals supplier, and two principals, Tyler G. Gallagher and Leah Donoso, are accused of participating within the illegal supply and sale of treasured metals inside California.
The lawsuit additionally alleges a nationwide scheme to defraud and misappropriate buyer funds, primarily consisting of retirement financial savings. Quite than utilizing buyer funds as supposed for buying treasured metals, the defendants are alleged to have diverted funds to cowl enterprise and private bills. To perpetuate their fraudulent actions, false and deceptive info was supplied to deceive prospects.
The grievance seeks a everlasting injunction, disgorgement, full restitution, rescission, and civil financial penalties. The plaintiffs are searching for a jury trial. This collaborative effort between the California DFPI and the CFTC underscores the dedication to guard shoppers and their monetary pursuits.
“This lawsuit is a continuation of the Division’s efforts to carry wrongdoers within the treasured metals buying and selling markets accountable,” stated DFPI Commissioner Clothilde V. Hewlett. “The DFPI seeks to place a cease to illegal and unscrupulous conduct that targets shoppers’ hard-earned retirement financial savings.”
This joint civil motion follows one other joint enforcement action filed in May towards treasured metals supplier Crimson Rock Secured, LLC, its principal and proprietor, Shade Johnson-Kelly a/okay/a Sean Kelly, and gross sales agent Anthony Spencer, by the DFPI, CFTC, and the State of Hawaii securities regulator. The DFPI, CFTC, and different state regulators additionally filed civil actions towards treasured metals sellers in 2020 and 2022 to handle fraudulent treasured metals and coin schemes that focused the aged.
The DFPI encourages shoppers who’ve skilled fraudulent practices in reference to funding advisory providers or the sale of commodities, and any unfair, illegal, misleading, and abusive practices from a monetary service supplier to submit a grievance with the Division on-line at dfpi.ca.gov/submit-a-complaint/.
In regards to the DFPI
The California Division of Monetary Safety and Innovation (DFPI) protects shoppers, regulates monetary providers, and fosters accountable innovation. The DFPI protects shoppers by establishing and implementing monetary rules that promote transparency and accountability. We empower all Californians to entry a good and equitable monetary market by means of schooling and stopping potential dangers, fraud, and abuse. Study extra at dfpi.ca.gov.