Silver Law Group is representing investors who purchased precious metals on a leveraged basis or on margin, particularly silver, through Worth Group and/or Treasure Coast Bullion Group and lost their entire investment after a “wipeout” event in March 2020.
Worth Group and Treasure Coast are precious metals sales companies with a network of “salesmen” operating throughout the United States. These companies frequently cold-call investors to convince them to invest in precious metals. Worth Group and Treasure Coast would often encourage investors not only to buy precious metals, but to obtain more silver on a leveraged basis or on margin, sometimes referred to as a “Midas Account”. Salesmen would tout that this program offered huge upside with minimal risk, and was even appropriate for retirees.
Unfortunately, in March 2020, after a fluctuation in the price of silver, many investors who purchased these precious metals on a leveraged basis, i.e. were loaned the funds to purchase triple the amount of silver, had their accounts completely wiped out, losing not only their gains based on increased silver prices, but the underlying silver they thought they owned.
Silver Law Group is currently representing these victims who lost their entire investment of precious metals and Silver Law Group’s attorneys are continuing to investigate additional potential claims against Worth Group and Treasure Coast. Specifically, Silver Law Group continues to investigate the nature of this March 2020 “wipeout event” that led to investors’ losses, as well as whether Worth Group and Treasure Coast investors were charged unfairly high commissions and fees, above and beyond the spot price for the silver they were purchasing, which magnified their losses.
Worth Group Has Had Prior Regulatory Issues
Worth Group has had regulatory issues in the past. In 2013, Worth Group was sued by the Commodity Futures Trading Commission (CFTC), for conducting leveraged precious metals transactions in a manner that violated commodities laws. The case resulted in a permanent order prohibiting Worth Group from violating the Commodity Exchange Act in the future. The CFTC has also pursued other firms engaged in similar activities over the past several years.
Investors Allege Worth Group And Treasure Coast Violated Commodities Laws, Among Other Things
Silver Law Group’s current clients are alleging that Worth Group and Treasure Coast violated CFTC rules and regulations, misrepresentation, and breach of fiduciary duty.
Investors have lost millions of dollars after investing with Worth Group and Treasure Coast, despite Worth Group’s and Treasure Coast’s advertisements that these investments were safe and appropriate for retirement.
Risks Of Investing In Precious Metals
Generally, investing in precious metals can be very risky. There are many companies and individuals who advertise on television and the internet making promises that investing in precious metals can be very profitable and safe. However, the reality is that these investments are highly speculative and some firms, like Worth Group and Treasure Coast, lack transparency about the commissions and fees they charge. For more information about the CFTC’s guidance about precious metals investing, see Silver Law Group’s page about precious metals fraud or visit the CFTC’s website.
Did You Lose Money Investing With Worth Group Or Treasure Coast Bullion Group?
Silver Law Group’s attorneys currently represent Worth Group and Treasure Coast victims, and have significant experience representing investors who suffered losses from precious metals scams, numismatic coin frauds, and in claims against firms that recommended inappropriate investments in precious metals. If you or someone you know invested with Worth Group and/or Treasure Coast, contact Silver Law Group today for a confidential consultation at (800) 975-4345 or email firstname.lastname@example.org.