One of America’s top-rated Gold IRA specialists has been charged by the SEC in an alleged case of fraud – but do the SEC’s numbers or allegations even make sense?
Bullion.Directory precious metals news 17 May, 2023
By Alison Macdonald
Commercial Editor at Bullion.Directory
California-based Red Rock Secured, a finance company widely known for its commitment to customer satisfaction, is facing surprise civil charges this week. The Securities and Exchange Commission (SEC) alleges that Red Rock Secured and its CEO, Sean Kelly have engaged in questionable practices alleged to have affected over 700 investors, over a span of five years.
According to the SEC complaint, Red Rock Secured targeted older investors, tapping into their retirement and tax concerns to promote the purchase of gold and silver coins to hold in self-directed IRAs.
The SEC claims that the coins were sold at prices significantly above their market value, often with markups exceeding 100 percent and sometimes reaching 120 percent. The SEC further asserts that Red Rock Secured retained over $30 million of the $50 million paid by investors for these coins between 2017 and last year.
In response to the charges, Red Rock Secured and CEO Sean Kelly have been fully cooperative with the SEC investigation and maintain their commitment to transparency and compliance.
Attorney Michael Shaffler of the law firm Cohen Williams, representing Red Rock and its CEO, stated;
Red Rock has nothing to hide and has been completely cooperative throughout the SEC’s investigation. The company is dedicated to providing clients with the information necessary to make informed decisions regarding the purchase of precious metals. Red Rock stands firmly by this principle and eagerly awaits the opportunity to defend itself against the government’s allegations in court.”
The SEC alleges that Red Rock Secured employed an assertive marketing campaign that targeted conservative or right-wing investors over the age of 59½. Sales representatives were reported to have exploited concerns about government policies, inflation, the stock market, and retirement, persuading investors to transfer their IRA funds to Red Rock and invest in gold and silver bullion.
Upon learning of the SEC’s investigation, the BBB, Trustpilot and Bullion.Directory have taken action by adding alerts to Red Rock Secured’s review pages. This is not to say we believe the company is guilty of wrongdoing but to draw attention to the issue, as we do when any listed company is similarly accused.
Bullion.Directory has also reluctantly removed Red Rock Secured from our ongoing Bullion Dealer of the Year public vote until this case is resolved
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Red Rock Secured, now called American Coin Company, has been charged by the SEC in an alleged case of fraud. Information about these charges is posted on the SEC’s website. BBB should publicize that.
Without disclosing the true premium for their “coins” (which are actually not coins, but Rounds) our investment went from $57k to $22k while the price of silver WENT UP. The difference is an exorbitant premium on the “coins”.
I want the coins sold at a similar premium price, and something in excess of $55k refunded. We are willing to pay the $2k difference for being a sucker.