A branch of the federal government claims a San Juan Capistrano resident sold $2.4 million in gold, silver, platinum, and palladium to retail customers in retail commodity transactions -- but the customers never received the goods.
Between July 2011 and February 2013, Bharat Adatia and two companies he ran, Lions Wealth Capital and 20/20 Precious Metals Inc., sold precious metals, offered loans to customers to buy the physical metals and arranged to store them in an independent depositor, the U.S. Commodity Futures Trading Commission says in a complaint.
But all of those claims were false, alleges the CFTC.
“The defendants did not sell or transfer ownership of any physical metals, did not disburse funds as loans and did not cause any metals to be stored in any depositories for or on behalf of Lions Wealth and 20/20 Metals customers,” according to a press release. “The complaint alleges that defendants nevertheless charged customers storage fees and other charges on metals that did not exist and interest on loans that were never made.”
The charges involve at least 74 customers from both companies, the press release says.
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