Lear Capital, a precious metals dealer, was accused by regulators and customers of deceptive sales practices. Allegations included charging undisclosed commissions of up to 33 percent, marking up gold and silver well above spot price, and misrepresenting coins as rare or collectible.
New York’s Attorney General sued Lear and founder Kevin DeMeritt in 2021, alleging the company defrauded nearly 1,000 New Yorkers out of roughly $10 million. Lear later paid $6 million to settle that case. Los Angeles also sued and won a settlement.
Facing mounting litigation, Lear entered bankruptcy, ultimately distributing $5.5 million to affected investors nationwide as part of a multi-state settlement.