Precious metals scam hits vegas investors

A precious metals scam has hit investors in Las Vegas, according to Mine Web.

The US Commodity Futures Trade Commission filed an injunction this week against three companies based in the state of Nevada, who allegedly took $2.4 million in a precious metals con.

The court documents say that Lions Wealth Capital (doing business as Lions Wealth Holdings and Lions Wealth Services), 20/20 Precious Metals and Bharat Adatia of San Juan Capistrano defrauded customers through precious metal deals to the tune of more than $2 million.

The allegations are that they fraudulently marketed illegal trading of precious metals, reportedly claiming to sell silver, gold, platinum and palladium to retail customers and also offering to arrange for loans and transfers of commodities to an independent depository. These were both false statements, according to CFTC.

The reports follow news of previous precious metals scams in Florida. Whether the claims are true not, they come as a timely reminder to investors of all assets – not just in the alternative sector – to remain cautious about where they place their money.