On Sept. 28, the DFPI announced that, in partnership with the federal Commodity Futures Trading Commission (CFTC), filed a lawsuit in the United States District Court for the Central District of California centering on a $21 million fraudulent scheme that specifically targeted customers’ retirement savings. Regal Assets LLC, and two individual defendants, are alleged to have misappropriated these funds from more than 120 customers nationwide between November 2019 and October 2022.

Regal Assets LLC, a Southern California-based precious metals dealer, and two principals, Tyler G. Gallagher and Leah Donoso, are accused of engaging in the unlawful offer and sale of precious metals within California. Rather than using customer funds as intended for purchasing precious metals, the defendants are alleged to have diverted funds to cover business and personal expenses. To perpetuate their fraudulent activities, false and misleading information was provided to deceive customers.

The complaint seeks a permanent injunction, disgorgement, full restitution, rescission, and civil monetary penalties. The plaintiffs are seeking a jury trial. This collaborative effort between the California DFPI and the CFTC underscores the commitment of both agencies to protect consumers and their financial interests.