A Dallas man was federally indicted on 10 wire fraud counts in connection with an alleged precious metals scheme that targeted elderly victims and their retirement savings, prosecutors said Thursday.
The 36-year-old was indicted May 20 and made his initial court appearance June 17 before U.S. Magistrate Judge Brian McKay, according to the U.S. Attorney’s Office for the Northern District of Texas.
According to the indictment, the man owned and operated several companies that encouraged elderly customers to use retirement savings to buy gold and silver coins.
Prosecutors allege he sold the precious metals at significantly inflated prices without disclosing the markups. He also allegedly failed on several occasions to deliver metals the customers had purchased.
“This office is committed to standing up and protecting seniors and elderly folks from scams,” U.S. Attorney Ryan Raybould said in a statement.
Raybould said the indictment should serve as a warning to people who target older North Texas residents.
“If you have or plan to target seniors and elderly folks, we will find you, charge you, and seek stiff prison sentences,” he said.
The man faces up to 20 years in federal prison on each wire fraud count if convicted, officials said.
The FBI’s Dallas field office investigated the case.
The Commodity Futures Trading Commission has issued a standing Precious Metals Fraud Advisory warning consumers about these schemes. It cautions against high-pressure sales pitches promising easy profits from gold and silver, undisclosed markups, financing tricks, storage fees for metals that may never be purchased or delivered, and aggressive targeting of retirement accounts. The agency urges investors to verify sellers’ registration and report suspicions immediately.