SEC Charges Red Rock Secured and Executives with Fraudulent Scheme Targeting Retirement Accounts
The Securities and Exchange Commission (SEC) today charged Red Rock Secured LLC, its CEO, Sean Kelly, and two of its former Senior Account Executives, Anthony Spencer and Jeffrey Ward, with fraud in connection with a scheme to defraud investors of millions of dollars in retirement savings. The complaint alleges that the defendants frequently misled investors by claiming they could purchase gold or silver coins at only 1 to 5% markups when they were actually charged as much as 130% in markups, which enabled the defendants to pocket more than $30 million out of the total $50 million they received from investors. The SEC is seeking injunctions, disgorgement of allegedly ill-gotten gains, interest, civil penalties, and an officer and director bar as to Kelly. The SEC’s investigation was conducted with the assistance of the Federal Retirement Thrift Investment Board, Commodity Futures Trading Commission, and state regulators from the North American Securities Administrators Association. The litigation will be led by Jack Kaufman.