The Commodity Futures Trading Commission (CFTC) today announced U.S. District Judge Fernando M. Olguin, Central District of California, issued orders of default judgment against a company and two individuals: Regal Assets LLC, a California LLC; Regal Assets’ owner and CEO, Tyler G. Gallagher, formerly of Los Angeles; and Regal Assets’ former President Leah Donoso of Robinson, Texas.
The orders stem from the CFTC and the California Department of Financial Protection and Innovation complaint jointly filed September 27, 2023, charging the defendants with misappropriating customer funds given to defendants to purchase precious metals from Regal Assets.
As alleged in the complaint, Regal Assets solicited customers to transfer funds primarily from their tax-deferred retirement accounts to purchase precious metals from Regal Assets through self-directed IRAs. Rather than using all of the customers’ funds to purchase precious metals, the defendants misappropriated more than $21 million from more than 120 customers.
The defendants made knowing or reckless fraudulent misrepresentations and omissions to customers, including using forged documents to conceal their misappropriation and maintain their fraudulent scheme.
Under the terms of the orders, the defendants are required to pay, jointly and severally, over $21.9 million in restitution to defrauded customers and civil monetary penalties over $27.3 million. The orders also permanently enjoin the defendants from engaging in conduct that violates the CEA and California law, as charged, and permanently bans them from registering with the CFTC and from trading in any CFTC-regulated markets.
The orders resolve the CFTC’s lawsuit against all three defendants.
