DFI announces compensation for investors in Lear Capital’s precious metals
The Wisconsin Department of Financial Institutions (DFI) announced in a recent press release that investors who purchased retail precious metals from Lear Capital will receive compensation as part of Lear’s bankruptcy plan. State securities regulators had been investigating Lear for deceptive securities and commodities activities and misleading marketing at the time of the company’s bankruptcy.
Under the terms of the bankruptcy plan, confirmed by the bankruptcy court on June 12, Lear will provide $5.5 million to be distributed to investors in Lear’s precious metals. Lear investors who filed a timely bankruptcy claim will receive refunds based on calculations determined by Lear’s bankruptcy plan. In addition, Lear will provide a pro rata distribution of the remaining funds to investors who did not file claims. The pro rata distribution applies to investors who bought precious metals from Lear between Jan. 1, 2016, and March 3, 2022.
As part of Lear’s bankruptcy plan, the company has also agreed to improve its sales practices and disclosures, including agreeing not to misrepresent its fee, not to offer portfolio assessments of securities holdings, not to hold itself out as an investment adviser in any way, and not to provide investment advice or commit securities or commodities fraud.
Wisconsin investors with questions about investments in Lear’s precious metals, or other precious metals, should contact the DFI’s Division of Securities via email, or call (608) 266-2139 for more information.