Commissioner Downing Announces Lear Capital Investors Will Receive Compensation

163 Montanans Invested Over $3 Million

Helena, Mont.- State Auditor and Securities Commissioner Troy Downing announced today that investors who purchased retail precious metals from Lear Capital are eligible for compensation as a part of Lear’s bankruptcy plan. Montana and other state regulators investigated 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, Lear will provide $5.5 million to be distributed to investors in Lear’s precious metals. Lear investors that 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.

“Lear Capital urged Montana investors to liquidate their savings accounts while not disclosing the fees they charged. These deceptive practices took thousands of dollars out of the pockets of hard-working Montanans.” Downing said, “Our agency is laser-focused on stopping scams and deceitful practices that harm Montanans.”

As a part of Lear’s bankruptcy plan, the company has 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.

There are 163 Montanans who invested over $3 million with Lear Capital who are eligible for compensation as part of this agreement. CSI urges Montana Lear investors to file a bankruptcy claim. For questions, contact the CSI securities bureau by calling 406-444-2040 or go to CSIMT.gov.

Troy Downing is the Commissioner of Securities and Insurance, Montana State Auditor. Commissioner Downing is a two-tour combat veteran, businessman, and entrepreneur.

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