A-Mark Precious Metals, Inc. Reaches $1.1 Million Settlement with CFTC
A-Mark Precious Metals, Inc. (NASDAQ: AMRK) has settled with the Commodity Futures Trading Commission (CFTC) regarding an investigation into retail precious metal transactions by its subsidiary, Goldline, Inc., from April 2018 to June 2021. The settlement includes a fine of $450,000 and disgorgement of about $628,000. The company entered the agreement without admitting or denying CFTC's allegations. The resolution is expected to have no material financial impact on A-Mark's operations, allowing Goldline to refocus on growth in its Direct-to-Consumer segment.
- Settlement reached without admitting wrongdoing, providing a clean slate for Goldline.
- The resolution allows Goldline to concentrate on growth in the Direct-to-Consumer segment.
- Settlement involves paying a total of $1.078 million in fines and disgorgement.
CFTC Investigation Arose out of Certain Retail Transactions at Subsidiary Goldline, Inc.
EL SEGUNDO, Calif., Sept. 22, 2022 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK), a leading fully integrated precious metals platform, announced today that it and its subsidiary, Goldline, Inc., have reached a settlement with the Commodity Futures Trading Commission (CFTC), to fully resolve the CFTC’s investigation into certain retail precious metal transactions engaged in by Goldline from April 2018 to June 2021. Pursuant to the settlement, the companies agreed to pay a fine of
“We are pleased that the matter has been resolved amicably,” said Steven Reiner, Executive Vice President of Capital Markets & Investor Relations of A-Mark. “The settlement, which has no material financial impact on our operations, will enable us to put this matter behind us and allow Goldline to focus on its growth within our Direct-to-Consumer segment.”
About A-Mark Precious Metals
Founded in 1965, A-Mark Precious Metals, Inc. (NASDAQ: AMRK) is a leading fully integrated precious metals platform that offers an array of gold, silver, platinum, palladium, and copper bullion, numismatic coins and related products to wholesale and retail customers via a portfolio of channels. The company conducts its operations through three complementary segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The company’s global customer base spans sovereign and private mints, manufacturers and fabricators, refiners, dealers, financial institutions, industrial users, investors, collectors, and e-commerce and other retail customers.
A-Mark’s Wholesale Sales & Ancillary Services segment distributes and purchases precious metal products from sovereign and private mints. As a U.S. Mint-authorized purchaser of gold, silver, and platinum coins since 1986, A-Mark purchases bullion products directly from the U.S. Mint for sale to customers. A-Mark also has longstanding distributorships with other sovereign mints, including Australia, Austria, Canada, China, Mexico, South Africa and the United Kingdom. The company sells more than 200 different products to e-commerce retailers, coin and bullion dealers, financial institutions, brokerages and collectors. In addition, A-Mark sells precious metal products to industrial users, including metal refiners, manufacturers and electronic fabricators.
Through its A-M Global Logistics subsidiary, A-Mark provides its customers with a range of complementary services, including managed storage options for precious metals as well as receiving, handling, inventorying, processing, packaging, and shipping of precious metals and coins on a secure basis. A-Mark’s mint operations, which are conducted through its wholly owned subsidiary Silver Towne Mint, enable the company to offer customers a wide range of proprietary coin and bar offerings and, during periods of market volatility when the availability of silver bullion from sovereign mints is often product constrained, preferred product access.
A-Mark’s Direct-to-Consumer segment operates as an omni-channel retailer of precious metals, providing access to a multitude of products through its wholly owned subsidiaries, JM Bullion and Goldline. JM Bullion is a leading e-commerce retailer of precious metals and operates five separately branded, company-owned websites targeting specific niches within the precious metals market: JMBullion.com, ProvidentMetals.com, Silver.com, GoldPrice.org, SilverPrice.org. JMB also owns CyberMetals, an online platform where customers can purchase and sell fractional shares of digital gold, silver, platinum and palladium bars in a range of denominations. Goldline markets precious metals directly to the investor community through various channels, including television, radio and telephonic sales efforts. A-Mark also holds minority ownership interests in two additional direct-to-consumer brands.
The company operates its Secured Lending segment through its wholly owned subsidiaries, Collateral Finance Corporation (CFC) and AM Capital Funding. Founded in 2005, CFC is a California licensed finance lender that originates and acquires loans secured by bullion and numismatic coins. Its customers include coin and precious metal dealers, investors and collectors. AM Capital Funding was formed in 2018 for the purpose of securitizing eligible secured loans of CFC.
A-Mark is headquartered in El Segundo, CA and has additional offices and facilities in the neighboring Los Angeles area as well as in Dallas, TX, Las Vegas, NV, Winchester, IN, and Vienna, Austria. For more information, visit www.amark.com.
Company Contact:
Steve Reiner, Executive Vice President, Capital Markets & Investor Relations
A-Mark Precious Metals, Inc.
1-310-587-1410
sreiner@amark.com
Investor Relations Contact:
Matt Glover or Jeff Grampp, CFA
Gateway Investor Relations
1-949-574-3860
AMRK@gatewayIR.com
FAQ
What is the CFTC investigation involving AMRK?
What are the terms of the settlement with the CFTC for AMRK?
How will the CFTC settlement affect AMRK's financial operations?
What does the settlement mean for Goldline?
