Lear Defrauded New Yorkers Out of a Third of Investments
NEW YORK – New York Attorney General Letitia James today filed a lawsuit against Lear Capital (Lear) and its founder, Kevin DeMeritt, for cheating nearly 1,000 New Yorkers out of approximately $10 million. In the petition, Attorney General James alleges that Lear persuaded investors — including many elderly residents of Western New York who were seeking to safeguard their retirement savings — to invest tens of millions in precious metals, primarily coins. Lear did this while fraudulently charging undisclosed commissions — up to 33 percent — on more than $43 million in sales. Lear targeted New Yorkers’ individual retirement accounts and other savings, and charged hidden commissions that instantly reduced New Yorkers’ investments by as much as one-third — unlawfully profiting approximately $10 million at the commencement of these investments. Lear also perpetrated its scheme while not being registered as a commodity broker-dealer, commodity investment advisor, or a telemarketer — all as required by New York law.
“When it comes to protecting New Yorkers’ life savings, we will not hesitate to do everything in our power to protect their investments and their ability to retire with dignity,” said Attorney General James. “Simply put, Lear Capital’s business plan relied heavily on cheating nearly 1,000 New Yorkers who were afraid of losing their hard-earned retirement savings out of…
