Kevin DeMeritt and the Scam Scandal: Efforts to Censor the Truth

Kevin DeMeritt, the founder of Lear Capital and self-proclaimed business professional, has been the subject of numerous controversies, predominantly due to his company’s deceptive business practices. Despite his polished image, the reality is far more sinister, involving allegations of fraud, concealed fees, and the exploitation of vulnerable investors.

The notice that we received, with any personally identifying information removed, may be found on the website of Lumen, a third-party aggregator of legal complaint notices, at https://lumendatabase.org/notices/44361775.

Kevin Demeritt, or an individual acting on his behalf, attempted to suppress this article originally published at https://www.financescam.com/kevin-demeritt/, by submitting a baseless DMCA notice to Google. Certain reputation management companies frequently use this strategy. At Critical Intel, we counter such actions by republishing the article across our network and affiliate websites to ensure continued accessibility.

The notice that we received, with any personally identifying information removed, may be found on the website of Lumen, a third-party aggregator of legal complaint notices, at https://lumendatabase.org/notices/44361775

Kevin DeMeritt’s orchestration of a series of scams that have left countless victims in their aftermath is the subject of this exposé, which explores the dark side of Lear Capital.

Kevin DeMeritt’s Illusion of Professionalism

Lear Capital, a California-based precious metals merchant, has aggressively promoted itself as a dependable source for investing in gold and silver coins. The company has attracted numerous unsuspecting investors by means of persistent outreach efforts and alarming advertisements that warn of impending economic catastrophe. However, a web of deceit exists beneath this professional façade that takes advantage of the ignorant and the elderly.

The Scandal of the Hidden Fees

One of the most flagrant aspects of Lear Capital’s business practices is the imposition of exorbitant transaction fees, which are frequently concealed until after the transaction is finalized. Customers have claimed that fees as high as 33% caught them off guard and significantly decreased the value of their investments. Regulatory authorities have taken note of these practices.

Letitia James, the New York Attorney General, filed a lawsuit against Kevin DeMeritt and Lear Capital in June 2021, asserting that the company had neglected to disclose millions of dollars in commissions. The lawsuit emphasized Lear Capital’s fraudulent charging of these undisclosed fees, with a particular emphasis on elderly residents in Western New York.

This legal action accused the company of violating state laws that mandate the registration of commodity broker-dealers and telemarketers with the state, thereby subjecting their deceptive practices to regulatory scrutiny.

Settlements and Legal Consequences

Lear Capital and DeMeritt have encountered substantial legal obstacles. In response to the New York lawsuit, a consent order was filed in the New York Supreme Court, requiring Lear Capital and Kevin DeMeritt to pay $6 million to resolve the claims.

The intended recipients of these funds were qualified New Yorkers who had suffered losses as a result of Lear’s misconduct. Additionally, Lear Capital was compelled to modify its business practices in New York, which included offering a 24-hour revocation period for specific transactions and providing transparent fee disclosures.

Nevertheless, the legal complications did not conclude at that point. The Los Angeles City Attorney also filed a lawsuit against Lear Capital in 2019, underscoring the company’s extensive fraudulent activities. Collectively, these lawsuits presented a damning depiction of a company that was dedicated to the relentless pursuit of profit at the expense of its customers and that was engaged in systematic deception.

NY Attorney General Letitia James Sues Lear for Defrauding Clients:

New York Attorney General Letitia James filed a lawsuit against Lear Capital in July 2021 for deceiving around a thousand New Yorkers. Similar to the case of the Los Angeles City Attorney, AG James stated that Lear had collected about $10 million in unlawful profits by charging upto 33% in hidden commissions. 

The AG stated that Lear Capital’s business model depended on cheating nearly 1,000 New York residents who didn’t want to lose their retirement savings. Her lawsuit also states that Lear hasn’t registered as a telemarketer, commodity investment adviser, or commodity broker-dealer.

NY AG’s court filing also included 13 affidavits from state residents. For example, a 78-year-old New Yorker shared that he received phone calls from Lear in 2016. He told the company that he was only interested in investing in bullion, and after receiving calls from Lear for over two years, he sent them 900 ounces of silver bullion and $20,000 cash. 

In exchange, they sent him 36 platinum bars. Then, Lear Capital persuaded him to liquidate the gold and silver in his IRA and invest the amount in platinum bars through them. 

The Akon man sent Lear 640 ounces of silver bullion in exchange for additional platinum later that year. He eventually realized he had paid around $42,300 in cash and silver bullion for around $28,000 of platinum. Moreover, he sold gold and silver present in his IRA worth around $29,000 to purchase platinum worth around $19,640. 

AG’s lawsuit also reveals how Lear scams unsuspecting investors. After multiple unrecorded conversations, Lear Capital tells consumers who had agreed to buy coins that they need to make a recording to verify the terms of purchase. The company then tells them to answer “yes” to every question on the recording and that it is only a formality.

Also, they would tell the consumers that they would have to start over if they answered otherwise. 

The lawsuit says that the recording is how they trap investors. They bury a dangerous question among various innocent ones: “Do you understand that the ask-to-cost fee is 33%, yes or no?”

Kevin DeMeritt, Lear Capital’s founder, coined the phrase “ask to cost fee”. The company points to this phrase as evidence of consent for their unethical fees. 

Each of these Lear Capital lawsuits shows just how dangerous this firm is. These are proof of why you can’t trust this bullion dealer. 

The Bankruptcy Strategy

Lear Capital filed for Chapter 11 bankruptcy due to increasing legal and financial obligations. Kevin DeMeritt consented to contribute $5.5 million to establish a customer fund as part of the reorganization plan.

This fund’s objective was to compensate consumers who had submitted claims, thereby preventing the need for extended and expensive litigation. Although this action offered some solace to impacted investors, it also underscored the severity of the ethical violations and financial mismanagement during DeMeritt’s tenure.

Continuous Criticisms and Reputational Damage

Lear Capital and Kevin DeMeritt continue to endure substantial public criticism despite their efforts to reform their business practices and the legal settlements they have reached. Many perceive the company’s initiatives as inadequate, particularly in light of the extent of the deception. Critics contend that the high commissions and aggressive sales strategies implemented by Lear Capital indicate a more extensive culture of exploitation and avarice.

These controversies have significantly tarnished Lear Capital’s reputation. Many online reviews and testimonials from former consumers emphasize the dissatisfaction and mistrust that the company has fostered. These accounts depict a company prioritising profits over ethical conduct, recounting traumatic experiences of financial loss and betrayal.

Kevin DeMeritt’s narrative serves as a stark reminder of the rapid descent that can result from the pursuit of wealth when combined with unscrupulous practices. The victims may have received some degree of justice through the legal actions and settlements; however, the financial security and peace of mind that was harmed cannot be easily restored.

Ultimately, the Lear Capital case serves as a reminder of the necessity for transparency, accountability, and integrity in the financial sector. Vigilant consumer advocacy and stringent regulatory measures are the only ways to prevent such malpractices and guarantee a fair and equitable marketplace for all investors.

Conclusion

The narrative of Kevin DeMeritt and Lear Capital functions as a cautionary tale regarding the significance of regulatory supervision and the perils of unbridled corporate greed. Although DeMeritt may persist in presenting himself as a business professional, the truth is that allegations of fraud, legal disputes, and a tarnished reputation tarnish his legacy.

The lesson is evident to investors, particularly those who are elderly and inexperienced: it is essential to exercise scepticism and conduct thorough due diligence when engaging with companies that guarantee substantial returns on precious metal investments. The potential pitfalls and hidden costs beneath the surface should not be overlooked due to the allure of gold and silver.

Share on

email

Previous

trending_flat

Richard Liebowitz: Disgraced Lawyer Disbarred (Find Out Why)

Business

Next

trending_flat

Campaign to Remove Francesco Melpignano from Kadena Eco: Unethical Management Allegations

News