Lear Capital is a precious metals dealer that specializes in selling gold and silver coins, bullion and self-directed IRAs. It also offers market data, insights and price notifications to help customers make informed investments.
New York Attorney General Letitia James sued Lear Capital in June 2021 over allegations that it persuaded investors to invest in tens of millions of dollars of precious metals while fraudulently charging undisclosed commissions of up to 33 percent on their sales, and violating New York laws requiring commodity broker-dealers and telemarketers to register with the state.
What Happened to Lear Capital?
Lear Capital is a gold and silver coin dealer that also offers self-directed IRAs. They provide market data, insights and price notifications that can help you protect and grow your investments.
Precious metals are an alternative asset that isn’t linked to the stock market and can be a good way to diversify your investment portfolio. However, like any other investment, these assets can experience significant fluctuations in price.
During rough economic times, such as the one we are currently experiencing, investors may want to consider adding gold and silver to their investment portfolios. This can help offset the effects of inflation and help increase the stability of their IRAs.
Last year, New York Attorney General Letitia James filed a lawsuit against Lear Capital and its founder Kevin DeMeritt, charging that the company persuaded investors to invest tens of millions of dollars in precious metals while fraudulently charging undisclosed commissions of up to 33 percent. On Monday, the company agreed to pay $6 million to resolve the suit.
Lear Capital’s Legal Issues
Until recently, Lear Capital was a well-respected precious metals dealer. It had conducted billions of dollars in precious metals sales over the years and was a trusted name in the industry.
Now, however, it is facing legal issues. In June, the Los Angeles City Attorney’s Office filed a lawsuit against Lear for unfair and deceptive business practices.
The suit alleges that Lear Capital has been targeting elderly and inexperienced customers, robbing them of their life savings in many cases.
In a consent order, Lear Capital agreed to modify its business practices in New York and provide clear disclosures of its fees. It will also enhance its complaint tracking procedures in New York and provide training for employees. It will also pay restitution to eligible New York customers who were injured by Lear’s misconduct.
Lear Capital’s Bankruptcy
After facing numerous lawsuits from the City of Los Angeles and the State of New York, Lear Capital filed for bankruptcy in 2022. As a result, the company could continue to operate under court supervision and pay restitution to eligible customers.
The company specializes in buying and selling gold and silver bullion and assisting you with opening a self-directed IRA (SDIRA). They also offer a secure holding facility for any precious metals you purchase through your SDIRA.
In addition to the monetary settlement, Lear Capital must implement certain changes in its business practices that protect consumers nationwide. For example, it must inform a customer of his/her right to cancel a transaction without penalty within 24 hours of receiving a written invoice. It will also improve its complaint tracking procedures and provide training for its employees. In addition, it will pay $6 million in restitution to customers who have been harmed by the misconduct.
Lear Capital’s Reputation
Lear Capital is a trusted precious metals investment company. They provide a wide range of precious metals products such as rare coins and bullion at competitive prices. They also offer IRA Gold Accounts and other tax-advantaged investment plans.
In addition, they offer a Price Advantage Guarantee that ensures your investments are priced at the right level. This helps you avoid hidden fees and get the best rate on your purchase.
They also feature an extensive customer support system with an experienced team that is able to help you achieve your goals within your risk tolerance. They have a dedicated customer service line and email listed on their website for any questions you may have.
They have an excellent reputation in the industry and have earned 4.9 stars on Trustpilot, a 4.7 rating from Consumer Affairs, and are a charter member of Business Consumer Alliance. They also offer many helpful resources for investors including a free investor kit and bi-weekly newsletters that include cutting edge market data and news headlines to keep customers informed.
