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Business ProfileforRed Rock Secured, LLC
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SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI), in partnership with the federal Commodity Futures Trading Commission (CFTC) and the State of Hawaii securities regulator, today filed a federal lawsuit in Los Angeles against Red Rock Secured, a precious metals dealer, and its majority owner and sales agent for perpetrating an approximately $60 million fraudulent scheme that targeted customers’ retirement savings.
Southern California based Red Rock Secured, LLC, and its principal and owner, Shade Johnson-Kelly (a/k/a Sean Kelly), and sales agent Anthony Spencer, are charged with fraudulently soliciting an estimated $61.8 million in funds from more than 950 customers nationwide from November 2019 through at least February of 2022.
The lawsuit alleges that Defendants steered potential customers into purchasing silver and gold Canadian Red-Tailed Hawk (RTH) coins and misled customers into believing that Red Rock charged a relatively low markup on the sale of its RTH coins, while concealing that the actual mark-up charged to customers on the coins typically ranged from 100 to 130 percent. Because of Red Rock’s exorbitant markups, customers allegedly suffered an immediate loss on their investments, while Red Rock collected $34.4 million in markups on these purchases.
The DFPI further alleges that Red Rock provided unlicensed investment advice and used scare tactics to convince hundreds of customers nationwide to transfer funds, including funds from liquidating securities from their traditional retirement accounts, to purchase the overpriced metals.
“Engaging in commodities and investment adviser fraud to deplete customers’ hard-earned retirement funds for personal gain is despicable,” said DFPI Commissioner Clothilde V. Hewlett. “Today’s filing is the DFPI’s third joint regulatory action aimed at cleaning up fraud in the precious metals industry. We are committed to protecting consumers by holding these corrupt individuals accountable.”
The complaint seeks a permanent injunction, disgorgement, full restitution, rescission, and civil monetary penalties. The DFPI wishes to thank the CFTC, the State of Hawaii, and the Securities and Exchange Commission for their assistance in this matter.
The DFPI encourages consumers who have experienced fraudulent practices in connection with investment advisory services or the sale of commodities, and any unfair, unlawful, deceptive, and abusive practices from a financial service provider, to file a complaint with the Department online: https://dfpi.ca.gov/file-a-complaint/.
The Securities and Exchange Commission today announced charges against El Segundo, California-based Red Rock Secured LLC, its CEO, Sean Kelly, and two of its former Senior Account Executives, Anthony Spencer and Jeffrey Ward, in connection with a fraudulent scheme that involved convincing hundreds of investors to sell securities in their retirement accounts to buy gold and silver coins at prices that included markups far greater than the defendants had promised.
According to the SEC's complaint, since at least 2017, the defendants repeatedly solicited investors through false and misleading statements, telling them to "protect" their retirement savings by selling securities held in their federal employee Thrift Savings Plan accounts, 401(k) plans, and Individual Retirement Accounts to invest in gold or silver coins at only a 1 to 5 percent markup. In reality, Red Rock charged as much as 130 percent in markups, which allowed them to pocket more than $30 million of the more than $50 million they received from investors.
At-a-glance
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Products & Services
Business Details
- Location of This Business
- 400 Continental Blvd #200, El Segundo, CA 90245-5076
- BBB File Opened:
- 11/28/2016
- Years in Business:
- 14
- Business Started:
- 12/1/2009
- Business Incorporated:
- 11/4/2016
- Licensing Information:
- This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.
- Type of Entity:
- Limited Liability Company (LLC)
- Hours of Operation
Primary
- M:
- 8:00 AM - 5:00 PM
- T:
- 8:00 AM - 5:00 PM
- W:
- 8:00 AM - 5:00 PM
- Th:
- 8:00 AM - 5:00 PM
- F:
- 8:00 AM - 5:00 PM
- Business Management
- Ashley Austin
- Contact Information
Principal
- Ashley Austin
Customer Contact
- Mr. Sean Kelly, CEO
- James Colon
- Ashley Austin
- Additional Contact Information
Phone Numbers
- (424) 675-7625Other Phone
- (424) 675-7625
Customer Complaints
12 Customer Complaints
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07/29/2023
- Complaint Type:
- Problems with Product/Service
- Status:
- Answered
Customer Reviews
70 Customer Reviews
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Most Recent Customer Review
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08/05/2023
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