Silver Law Group filed a federal court case in the Southern District of Florida on behalf of several victims of the alleged scheme.
Two other people were criminally charged in connection to the silver lease program, and a parallel civil enforcement action was also filed by the Commodity Future Trading Commission (CFTC) against Baldwin, PCI, NCB, and others.
Alleged Precious Commodities/National Coin Broker Silver Leasing Scheme
The CFTC’s complaint alleges that from 2014 through 2019, PCI and NCB “engaged in a fraudulent and deceptive scheme to solicit and misappropriate at least $8 million in funds and silver from at least 60 investors in connection with a fraudulent silver leasing program, referred to as the “Silver Lease Program.”
The Silver Lease Program promised investors guaranteed monthly payments in exchange for use of silver that investors purchased from NCB or already owned. Investors were told that they would receive about 4%-5% for the lease of their silver, which would purportedly be used to fulfill purchase orders and then be replaced.
Paragraph 95 of the CFTC Complaint describes the alleged false promises NCB and PCI made regarding the guaranteed, insured nature of the Silver Lease Program:
“95. The silverlease.com website made numerous false and misleading statements regarding the supposed safety of the Program: “There is no other investment available to you that is guaranteed, insured and gives the return on investment that our Silver Lease Program does”; “We guarantee the program in writing, and we insure your Silver!”; “The full value of your silver is insured”; “Guaranteed and insured!”; “Are you looking for an investment that is guaranteed and insured? We know what you are thinking . . . An investment that is both insured and guaranteed? That’s not possible!”; “You will also be issued an insurance certificate covering the full value of your Silver at the start of the program. You will never have to worry about the loss of your investment”; “Your Silver is independently insured.”
Investors were also told that their silver would be kept in a secure storage facility, sometimes called a vault. The CFTC’s complaint says that “the Silver Lease Program was complete fiction because PCI never operated or maintained a vault or secure storage facility capable of storing the silver purportedly held for investors.”
The complaint also states that PCI and NCB misappropriated investor funds and made “Ponzi-style” monthly payments to investors with other investor’s funds.
The CFTC’s action seeks disgorgement, permanent trading and registration bans, restitution, civil monetary penalties, and a “permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations”.
Silver Law Group Represents Ponzi Scheme Victims
Silver Law Group is a unique law firm with a dedicated team of professionals including lawyers, forensic accounts, and case investigators with MBAs, that specializes in representing victims of Ponzi schemes, investment scams, and securities fraud cases. Scott Silver is a recognized expert in this area and a popular speaker on investor rights.
As the chairman of the Securities Fraud Group of the American Association of Justice, Scott recently spoke about the rise of cases involving unregistered financial advisors taking advantage of seniors and others promoting investment schemes that are not directly tied to the stock market.
This case involving precious metals fraud is demonstrative of how unscrupulous brokers are taking advantage of unsuspecting seniors. Silver Law Group has recovered millions of dollars for victims and represents investors nationwide.
Contact Silver Law Group Regarding Your Investment Losses
Silver Law Group represents investors in precious metals fraud and securities and investment fraud cases. Our experienced lawyers represent investors nationwide. Most cases are handled on a contingent fee basis, meaning that nothing is owed unless we recover your money for you. Contact us today at (800) 975-4345 for a no-cost, confidential consultation.