Lear Capital

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About Lear Capital



Lear Capital is a well-established company that is based in California, US. They have received several reviews on ProConsumer. Check out what others have said about them and determine if you can trust them or not in this page. 

More Information

  • Owner Kevin DeMeritt
  • CEO John Ohnesian
  • Open Hours 7 am-6 pm
  • City Los Angeles

Lear Capital

  • category
    Finance
  • Views
    276
  • Reviews
    0

1.9

trust score

2.3

brand audit

N/A

user’s score

0

user reviews

High risk
Founded1997 SpecializationPrecious Metals Target AudienceSenior citizens IRA ServicesYes
IRA Fees$280 Minimum Investment$5,000 Associated NameGlenn Beck Faced Regulatory ActionYes
AML ConcernsHigh Transparency ScoreMedium Legal Protection for ClientsNo LawsuitsYes (multiple)
Fraud AllegationsYes Adverse MediaYes (muliple) Risk Factor0.88 Brand AwarenessVery high
Negative ReviewsYes (multiple) Hidden Fees ConcernsHigh Deceptive Marketing AllegationsYes Conflict of Interest ConcernsHigh
Regulatory AuthoritySEC Predatory Sales ConcernsHigh Focus on Vulnerable Market Segments?Yes Suspicious Claims?Yes
An overview on Lear Capital
Lear Capital is a distinguished player in the precious metals industry, focusing on providing individuals with the opportunity to diversify their investment portfolios through the acquisition of gold, silver, platinum, and palladium. Established over two decades ago, the company has built a strong reputation for its commitment to customer education, transparent pricing, and personalized service. Lear Capital stands out for its comprehensive approach to investing in precious metals, offering a range of products from bullion coins and bars to rare and collectible coins. The company places a strong emphasis on investor education, providing a wealth of resources, including market insights, investment guides, and real-time pricing information. This educational commitment is designed to empower customers, helping them make informed decisions based on their financial goals and risk tolerance. Lear Capital's team of experts is known for their personalized approach, working closely with clients to tailor investment strategies that meet individual needs. Lear Capital also offers precious metal IRAs, allowing investors to incorporate physical gold and silver into their retirement planning. This service includes assistance with the rollover process, ensuring a smooth and compliant transition. With a track record of reliability, transparency, and expertise, Lear Capital continues to be a trusted source for those looking to enhance their investment portfolios with precious metals.
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Trust
experience
service
ethics
Pros
  • None
Cons
  • Sanctioned by the SC Malaysia
  • Used false statements in promoting its fund-raising investments
  • Sanctioned by the SC Malaysia
5 RED FLAGS FOR Lear Capital

Lear Capital has a consumer rating of N/A stars from 0 consumer complaints and reviews indicating that most customers are NOT satisfied with their experience. Consumers unhappy with Lear Capital most frequently mention bad support and high costs.

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critical intel on Lear Capital

NY Attorney General Secures $6 Million from Lear Capital

New York Attorney General Letitia James announced a $6 million settlement with precious metals dealer Lear Capital, Inc., resolving a lawsuit that accused the company and its founder, Kevin DeMeritt, of not disclosing millions in commissions charged to consumers. This settlement, resulting from a 2021 lawsuit, requires Lear to overhaul its business practices in New York and ensure transparency with its fees. The lawsuit highlighted Lear’s practices of persuading investors, including many elderly, to invest in precious metals while charging undisclosed commissions as high as 33%, in violation of state laws. The $6 million will be distributed to affected New York customers, with Lear also agreeing to clear fee disclosures, a 24-hour cancellation option for certain transactions, improved complaint tracking, and personnel training. Attorney General James emphasized the importance of protecting New Yorkers’ investments and ensuring transparency in financial dealings.

First PostedJanuary 2022 Allegations Deceptive Marketing Add. AllegationsUndisclosed Commissions Regulatory AuthorityAttorney General Office (New York)
Lawsuit Filed in2021 Future Condition #1 for LearClear fee disclosures Future Condition #2 for LearEnhanced compliance tracking Future Condition #3 for Lear24-hour cancellation option

Top 3 negative keyword association :

  • Deceptive
  • Fraudulent
  • Misconduct
DC State Regulator Recoup Overcharges from Lear Capital

According to the DC Department of Insurance, Securities, and Banking (DISB), Lear Capital, Inc.’s bankruptcy plan was designed to provide compensation to retail precious metals buyers. Lear was investigated by DISB and State securities authorities for engaging in fraudulent securities and commodities practices and for engaging in misleading marketing during its bankruptcy.

Lear Capital gave $5.5 million to precious metal investors as part of the bankruptcy arrangement. Investors who submitted bankruptcy claims on time were eligible for reimbursements based on the bankruptcy plan. The remaining cash will be distributed pro rata to investors who did not make claims. Investors who had purchased precious metals between January 1, 2016, and March 3, 2022, received the pro rata payout.

Lear had also agreed to improve its sales practices and disclosures, refrain from misrepresenting its fee, cease offering portfolio assessments of securities holdings, stop representing itself as an investment adviser, and avoid providing investment advice or engaging in securities or commodities fraud as part of its bankruptcy plan.

Commissioner Karima Woods stated that Lear Capital had deceived investors by persuading them to liquidate their retirement savings and purchase precious metals, all while failing to disclose the appropriate fees. This deceptive practice resulted in the company earning millions of dollars in fees and revenue. DISB continued to hold responsible financial service providers that had benefited from District residents through deceptive or unlawful ways, in order to safeguard investors from dangerous and dishonest business practices.

A company based in Los Angeles sold and bought back metals through direct-to-consumer and self-directed IRA transactions. Regulators alleged that it engaged in misleading business practices and violated investor protection regulations. The issues were remedied by the company’s $5.5 million bankruptcy deal.

First Posted2023 Allegations Deceptive activities Add. AllegationsMisleading marketing Investors EligibilityLear Capital customers between 2016-2022
Investigating AuthorityDISB Investigating CommissionerKarima Woods Settlement Amount$5.5 million Future Condition #1 for LearStop misrepresentation
Future Condition #2 for LearStop offering financial advice

Top 3 negative keyword association :

  • Fraud
  • Misleading marketing
  • Investing scam
California Joins Lear Capital's Alleged Fraud Case

The California Department of Financial Protection and Innovation (DFPI) announced that investors who bought retail precious metals from Lear Capital, Inc., a Los Angeles-based company, will be compensated as part of Lear’s bankruptcy plan. This decision comes after the DFPI investigated Lear for deceptive practices and misleading marketing related to securities and commodities activities, leading up to the company’s bankruptcy. DFPI Commissioner Clothilde V. Hewlett highlighted Lear’s urging of investors to liquidate traditional retirement savings to buy precious metals without proper disclosure of fees, which resulted in significant losses for investors.

As per the bankruptcy plan, Lear is mandated to allocate $5.5 million to reimburse its precious metals investors. Those who filed a timely bankruptcy claim will receive refunds based on the plan’s calculations, while a pro rata distribution of remaining funds will be made to investors who did not file claims, covering transactions between January 1, 2016, and March 3, 2022. Moreover, Lear has agreed to enhance its sales practices and disclosures to prevent misrepresentation of fees, offering portfolio assessments, posing as an investment adviser, and providing investment advice or committing fraud.

This settlement resolves allegations from regulators nationwide that Lear engaged in deceptive business practices and breached investor protection laws. The DFPI emphasizes the importance of compliance with financial laws in California and encourages investors to report any suspicious activities.

JurisdictionCalifornia DepartmentDFPI (Department of Financial Protection and Innovation) Lawsuit LocationLos Angeles Compensation Amount$5.5 million
Investigation FocusMisleading marketing Claim Filing PeriodJanuary 1, 2016, to March 3, 2022 CommissionerClothilde V. Hewlett Complaint Filing Phone(866) 275-2677
SERP<10 Brand ImpactHigh Search VisibilityHigh Content LanguageEnglish

Top 3 negative keyword association :

  • Misleading
  • Fraud
  • Lawsuit
Texas Takes Action Against Lear Capital's Alleged Fraud

Investors who bought retail precious metals from Lear Capital will be compensated as part of Lear’s bankruptcy plan, according to the Texas State Securities Board (TSSB). The state securities regulators investigated Lear for deceptive securities and commodities activities and misleading marketing that had led to the company’s bankruptcy.

As per the bankruptcy plan, Lear provided $5.5 million to be distributed among investors who had bought precious metals from Lear. Timely bankruptcy claims were filed by Lear investors, resulting in refunds being issued to them. The amount of the refunds was determined by calculations outlined in Lear’s bankruptcy plan. Additionally, Lear provided a pro rata distribution of the remaining funds to investors who had not filed claims. The pro rata distribution applied to investors who had purchased precious metals from Lear between January 1, 2016, and March 3, 2022.
As part of Lear’s bankruptcy plan, the company also improved its sales practices and disclosures. It agreed not to misrepresent its fees, offer portfolio assessments of securities holdings, hold itself out as an investment adviser, or provide investment advice or commit securities or commodities fraud.

Lear Capital had urged investors to liquidate their traditional retirement savings and had encouraged them to purchase precious metals without providing proper fee disclosures. As a result of these deceptive practices, the company had profited millions of dollars at the expense of investors.

The Los Angeles-based company was accused by various regulators of using deceptive business practices and violating investor protection laws. It sold and bought back metals through direct-to-consumer transactions and self-directed IRA transactions. The actions were resolved as part of a $5.5 million bankruptcy settlement.

First Posted2023 JurisdictionTexas DepartmentTexas State Securities Board Investigation FocusDeceptive claims
Complaint Filing Email[email protected]. Brand ImpactMedium Search VisibilityHigh SERP<10

Top 3 negative keyword association :

  • Investor alert
  • Fraud
  • Bankruptcy
Iowa Insurance Division Joins Case Against Lear Capital

Investors who bought retail precious metals from Lear Capital, a Los Angeles-based company, will be compensated as part of the company’s bankruptcy plan, according to an announcement by the Iowa Insurance Division. The state securities regulators were investigating Lear for deceptive securities and commodities activities and misleading marketing when the company went bankrupt.

Iowa’s regulatory action was part of the multi-state recovery attempt against Lear Capital. The settlement amount is the same as mentioned ($5.5 million).

Published inAugust 2023 Regulatory AuthorityIID Statement byDeputy Commissioner Andrew Hartnett JurisdictionIowa
Complaint Contact No.515-654-6475 Complaint Contact Email[email protected] SERP<5 Brand ImpactHigh

Top 3 negative keyword association :

  • Bankruptcy
  • Recoup
  • Fraud

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