(Media release from the Georgia Secretary of State Press Office):
Georgia Secretary of State Brad Raffensperger announced that Georgia investors who purchased retail precious metals from Lear Capital will receive compensation as part of Lear Capital’s bankruptcy plan. The Secretary of State’s Securities Division was part of a multi-state effort investigating Lear for deceptive securities and commodities activities and misleading marketing at the time Lear Capital declared bankruptcy.
$5.5 million will be distributed among those who invested in Lear Capital’s offerings. Georgians invested a total of $17,797,620.
“We’re doing everything in our power to protect Georgians from predatory investment scams,” said Secretary of State Brad Raffensperger. “A late-night commercial promising an overwhelming return on your investment might seem too good to be true, and most of the time – it is.”
Georgians who invested in Lear Capital and filed a timely bankruptcy claim will receive refunds based on calculations determined in Lear’s bankruptcy plan. Lear will also provide a pro-rata distribution of funds to investors who did not file claims. These settlements apply to Georgians who bought previous metals from Lear between January 1, 2016, and March 3, 2022.
“Lear Capital urged Georgians to liquidate their traditional IRA’s, their retirement, and buy precious metals at overpriced rates,” added Secretary Raffensperger. “They racked up millions at the expense of everyday Georgians.”
Additionally, as part of Lear’s bankruptcy plan the company has agreed to improve its sales practices and disclosures, including agreeing not to misrepresent fees, or hold itself as an investment advisor.
