Lear Capital Precious Metals Settlement Overview:
- Who: Lear Capital Inc. allegedly deceived consumers into investing in precious metals IRAs.
- Why: New York reportedly reached a settlement with Lear over allegations the company failed to adequately disclose customers’ money would be used to fund 33% commissions.
- Where: The settlement was filed in the Supreme Court of the State of New York, County of Erie.
Lear Capital Inc. has reportedly agreed to pay $6 million to settle a lawsuit filed by New York Attorney General Letitia James that alleges the company violated state law by misleading consumers about the value of the gold and silver it sold.
The Lear settlement, also signed by the company’s founder Kevin DeMeritt, will resolve a lawsuit filed by James in June 2021 that alleges Lear and DeMeritt used television and radio advertisements to convince consumers to transfer funds from their investment retirement accounts into precious metals IRAs.
Approximately 1,000 New York residents were persuaded by these advertisements and invested $43 million in gold and silver, according to James’s lawsuit. New York intends to distribute the settlement funds to Lear’s New York customers, according to the settlement documents.
Lear Allegedly Concealed Hefty Commissions from Investors
The defendants allegedly informed consumers that investing in gold and silver was a wise strategy during uncertain economic times. However, Lear allegedly failed to inform investors that approximately one-third of their investments would go to commissions and not be included in their investment in precious metals.
James claimed that Lear improperly concealed its commission policy by printing it in a small font and using confusing jargon. She also claimed that Lear overstated the value of the precious metals it sold.
Additionally, Lear allegedly failed to register as a telemarketer, commodity investment advisor or commodity broker-dealer in violation of New York law.
Under the terms of the precious metals investment settlement, Lear and DeMeritt will disclose the 33% commissions with “clear and conspicuous language” in telephone calls and invoices and will establish a 24-hour period in which future precious metal sales can be canceled.
The precious metals investment settlement also requires Lear to implement and maintain a complaint database to record all complaints and store them in a searchable format, storing them for at least four years.
“After years of misleading consumers, costing them millions in fees, Lear Capital’s illegal practices end now,” James said in a statement regarding the Lear settlement. “We’ve secured $6 million for New York consumers and the company will overhaul its business practices in New York. No longer will New Yorkers be subject to hidden fees pushed by fast-talking sales associates.”
What do you think about the Lear precious metals investment scheme settlement? Let us know in the comments below!
The plaintiff is represented by Tanya Trakht, Kenneth J. Haim and Christopher L. Boyd of the New York State Office of the Attorney General.
The Lear Capital Precious Metals Investment Lawsuit is The People of the State of New York, by Letitia James, Attorney General of the State of New York v. Lear Capital Inc., et al., Case No. 807870/2021, in the Supreme Court of the State of New York, Erie County.
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9 thoughts onLear Capital Reaches $6M Precious Metals Investment Scheme Settlement
Leer capital is affecting me in a different matter,,,, although I am on the “do not call list” , leer capital calls me approx 6-8 times a day determined to make me invest with them! I have replied “stop”, I have verbally told them to stop but they do not! It is 3:00 in the afternoon, they have already left 5 messages today, on a SUNDAY! They won’t stop! Can u help with this??
I had invested a large amount of money in a Roth IRA with Lear Capital. I stored my purchase with Equity Trust precious metals
storage. I received a statement of my account value from them last year, which was far less than I had invested. Since that time
I have been trying to find out just what I have, and where the rest of the investment had gone. Further, I have found that the
coins that I do own are coins most dealers do not recognize. I understand the legal action I have heard about is happening
in New York. What about citizens of other states that Lear Capitol has swindled?
Lear Capital kept pressuring me to invest money from my 401K over and over again and never mentioned anything about the amount of their commissions. They told me that in 4 years silver had the potential to increase substantially. I paid over $39.00 per each Silver Owl half ounce coin and as soon as I purchased the silver each piece each coin was less than $15.00 and after 5-6 years it never increased anywhere close to $39.00 per piece. Eventually I had a few emergencies over a 5–6-year span and had sell my coins and take a huge loss. They never bother to go into the commission part to let me how much they really made and when I asked 3-4 times, I honestly feel they really weren’t telling me the whole truth. I lost a lot of my 401K money on this investment. Very disappointed on the pressure tactics these silver tonged devils used to persuade me. When I kept calling my representative that sold me the coins my calls were forwarded to another representative to keep me from dealing with the guy that pushed and pressured me into buying the silver coins. I’m positive there are so many other hard-working folks that lost a lot of their money dealing with these well-trained professionals who make us believe it’s a great investment.
I received a check from Huntington National Bank for the Lear Capital settlement they did not explain how they arrived at this figure can some clarify?
Hello,
When will the settlement from Lear Capital be paid out? I received the notification card, submitted the form online and heard nothing further.
Who can I contact regarding this?
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