U.S. Commodity Futures Trading Commission (CFTC) on Regal Assets LLC, Tyler G.Gallagher and Leah Donoso filed suit。

The CFTC's indictment, filed with the District Court for the Central District of California on September 27, 2023, alleges that starting at least November 2019 and continuing at least through October 2022, Regal Assets LLC, Tyler G.Gallagher and Leah Donoso were involved in a fraudulent scheme related to the sale of precious metals throughout the United States, including in the District Court for the Central District of California and elsewhere in California。

During the relevant period, Regal Assets induced customers to transfer funds from their tax-deferred retirement accounts, including individual retirement accounts (IRAs), 401 (k) plans, and / or U.S. government savings plans (TSPs), to purchase precious metals from Regal Assets through an autonomous IRA (SDIRA).。Regal Assets also raises and accepts funds from clients, using non-retirement funds to purchase precious metals。

Instead of using all of the client's funds for the intended purpose, the defendants misappropriated more than $21 million in funds provided by more than 120 clients.。In the process, Defendants made knowingly or recklessly fraudulent misrepresentations and omissions to customers in order to cover up their misappropriation and maintain their fraud scheme。

The United States Commodity Futures Trading Commission alleges that the defendant violated Section 6 (c) (1) of the Commodity Exchange Act ("CEA") (7 U.S.C. 9 (1)), Section 180 of the Commodity Futures Trading Commission Regulations..1 (a) (1) - (3) (17 U.S.C. 180.1 (a) (1) - (3), 2022) and section 29536 of the California Companies Act。

The conduct, misrepresentation, omission and dereliction of duty of Gallagher, Donoso and other officers, employees and agents of Regal Assets occurred within the scope of their employment, representation or employment with Regal Assets。Accordingly, pursuant to Section 2 (a) (1) (B) of the United States Economic Act (7 U.S.C. § 2 (a) (1) (B)) and Section 1 of the United States Commodity Futures Trading Commission Regulations.2 (Title 17, Section 1, of the U.S. Commodity Futures Trading Commission Regulations.2, 2022), Regal Assets is responsible for all these acts and practices。

During the relevant period, Gallagher served as CEO, owner and principal of Regal Assets。While in these positions, Gallagher directly or indirectly controlled Regal Assets and did not act in good faith or knowingly, directly or indirectly, induce Regal Assets to commit the acts alleged in this complaint.。Accordingly, Gallagher is liable under Section 13 (b) of the United States Economic Code (7 U.S.C. § 13c (b)) for the actions described herein by Regal Assets。

The CFTC seeks civil penalties, indemnities and remedial ancillary relief, including but not limited to return, rescission, pre-judgment and post-judgment interest。