Cease and Desist Order Issued by Colorado Securities Commissioner Requires Metals.com to Extend $2.9 Million Rescission Offer to 21 Colorado Investors

DENVER (July 22, 2019) - Colorado Securities Commissioner Chris Myklebust has issued a cease and desist order to respondent Metals.com, TMTE, Inc., d/b/a/ METALS.COM, TEM, Inc., Chase Metals, Inc., Access Unlimited, LLC (together “Metals.com” or “Respondents”). The order directs the Respondents to immediately end transacting business in the State of Colorado as an investment adviser or as an investment advisor representative without the required licenses or otherwise engaging in conduct in violation of any provision of the Colorado Securities Act.

An investigation conducted by Division staff found that Metals.com allegedly contacted investors with 401(k) and IRA accounts and advised investors, for compensation, about their choice of investment vehicles. The investigation also alleges that Investors were provided with documents discussing different ways of investing in precious metals and comparative information about the performance of metals and other investment vehicles.  According to its website, Metals.com is an independent retailer of gold and silver products, including bars, rounds, and coins.

The stipulation for consent cease and desist order contends that Metals.com assisted investors with the application process whereby “free” self-directed IRA accounts were opened. After the investor's new "free" account was established, investors were allegedly guided through the process of liquidating existing securities in their accounts. Metals.com provided at least one investor with advice about particular securities. Based on this conduct, Commissioner Myklebust determined that Metals.com is giving investment advice and has violated the licensing requirement provisions of the Colorado Securities Act. 

“We license Registered Investment Advisors and their Representatives doing business in Colorado for a reason,” stated Myklebust. “It’s a privilege to serve the investment needs of Colorado’s citizens. By maintaining a license to legally provide investment advice the advisor conveys an acceptance to abide by certain standards of conduct. Investors can take a big step in protecting their hard-earned money by simply asking if the person providing them with investment advice is licensed with Colorado or by contacting the Division of Securities directly.”

In signing the stipulation for consent cease and desist order, Metals.com neither admitted to nor denied the allegations contained therein. They have agreed to send a written offer of rescission to all eligible Colorado investors and tender payment to each investor who accepts the offer of rescission. The Respondents have also agreed to immediately cease and desist all violations of the Colorado Securities Act and acknowledge that failure to do so may result in further action by the Division.