FTC: Federal judge bans operators of gold, silver investment scam

By Mark Iandolo | Dec 12, 2017

WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced Dec. 6 that a federal judge has banned the operators of Discount Gold Brokers’ alleged fraudulent investment scheme.

Discount Gold Brokers marketed gold and silver investments through advertisements in national media. On their website, the defendants would promise that their gold and silver investments could provide a safe retirement investment. Many consumers, including older Americans in particular, used retirement savings to pay the defendants.

The FTC alleges, however, that in many instances the defendants completely failed to provide the gold and silver they ordered and never provided refunds. The FTC charged the defendants with violating the FTC’s Mail, Internet or Telephone Order Merchandise Rule.

U.S. District Court Judge Otis D. Wright II granted the FTC’s request for summary judgment Oct. 4. The defendants in the case include Donald Lee Dayer and his wife, Katherina Dayer. Wright issued a final judgment Oct. 23 that banned the Dayers, Michael Scott Berman and DiscountMetalBrokers Inc. from selling investment opportunities, and misrepresenting goods or services.

The defendants have been ordered to pay $6,526,559 in penalties.

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