Short answer
Lear is a real, operating company. It is also a company that regulators alleged used deceptive pricing or related sales practices and that resolved those matters through settlements and a confirmed Chapter 11 plan. We do not use “legit” or “scam” as a substitute for that record.
For a prospective buyer, pricing is the main issue to verify: exact product, spread over Lear's cost, same-day buyback bid, account fees, and cancellation terms should all be in writing.
Regulatory Timeline
| Matter | What regulators alleged / investigated | Resolution |
|---|---|---|
| New York Attorney General 2021–2022 | The NY AG alleged Lear and founder Kevin DeMeritt fraudulently charged undisclosed commissions up to 33% on more than $43 million in sales to nearly 1,000 New Yorkers, including retirement savers, and alleged registration violations. | $6 million consent order announced Jan. 3, 2022; clearer fee disclosures, complaint tracking, personnel training, and 24-hour cancellation protection for retirement and certain higher-fee transactions in New York. |
| Los Angeles City Attorney 2019–2022 | The City Attorney alleged unfair and deceptive practices designed to mislead consumers about the true nature and value of investments, particularly fees. Lear denied the allegations. | Stipulated judgment entered Feb. 16, 2022; $2.75 million monetary relief, including up to $2.475 million customer compensation and at least $275,000 civil penalties. The judgment states it is not evidence of an admission of fault or liability. |
| Multistate / Chapter 11 plan 2022–2023 | State securities regulators said they had been investigating deceptive securities and commodities activities and misleading marketing when Lear filed bankruptcy. | Confirmed Chapter 11 plan included a $5.5 million customer fund and business-practice commitments, including not misrepresenting fees and not holding itself out as an investment adviser. |
New York: Hidden-Commission Allegations and $6 Million Consent Order
The New York Attorney General's June 2021 filing alleged that Lear persuaded nearly 1,000 New Yorkers to invest more than $43 million in precious metals while charging undisclosed commissions of up to 33%. The complaint also alleged that salespeople coached customers on answers, used confusing terminology, and sent invoices that obscured commission information.
In January 2022, the NY AG announced a $6 million resolution. The order required changes to Lear's New York practices, including clearer fee disclosure and a 24-hour cancellation period for retirement and certain higher-fee transactions.
Los Angeles: $2.75 Million Stipulated Judgment
The Los Angeles City Attorney filed its case in 2019 under California's Unfair Competition Law. The stipulated judgment describes allegations that Lear promised transparency and “no hidden fees” while allegedly using unfair and deceptive practices concerning fees. Lear denied that it had engaged in unfair or deceptive business practices.
The judgment entered in February 2022 required $2.75 million in monetary relief: up to $2.475 million for customer compensation and at least $275,000 in civil penalties. It also required written-invoice and cancellation reforms for covered transactions. The document explicitly states that the settlement does not constitute an admission of fault or liability by Lear.
Chapter 11 and the Multistate Settlement
Lear filed Chapter 11 in 2022 and continued operating. The important consumer-protection point is that the later confirmed plan carried a multistate regulatory settlement. State regulator notices say Lear would provide $5.5 million for investors and make sales-practice and disclosure changes.
Regulator notices describe distributions for customers who bought precious metals from Lear between January 1, 2016 and March 3, 2022. They also say the settlement resolved past conduct issues but did not prevent future enforcement for future violations.
What Has Changed Since Those Cases?
Lear's current website now publishes several disclosures that a buyer can use for comparison:
- a $10,000 Gold IRA minimum in its current fee guide;
- published IRA account-cost examples of $315/$365 in year one and $235/$285 thereafter depending on storage;
- online terms saying the dealer spread generally ranges from 2% to 35% of the quoted purchase price;
- a 24-hour cancellation policy in its current IRA FAQ;
- online terms stating future buyback is not guaranteed.
Those current disclosures are useful, but they do not erase the historical settlements. They make it easier to test a current quote against written terms.
Current Complaint Signals
As checked November 4, 2026, BBB shows Lear with an A+ business rating and a 4.81/5 customer-review average from 151 reviews, while also showing 33 complaints in the last three years and 12 in the last 12 months. Trustpilot shows 4.7/5 from 3,304 reviews, and ConsumerAffairs shows 4.8/5 from 1,678 reviews.
Recent accessible complaint material includes disputes about large spreads/premiums, product type or quantity, buyback/liquidation value, distribution delays, shipping/liquidation issues, and whether written details matched the customer's understanding. These are customer allegations; Lear frequently disputes the interpretation and cites transaction recordings or documents.
Is Lear Capital Under Investigation Now?
In searches performed November 4, 2026 across major federal regulator sites, we did not surface a newer 2024–2026 public enforcement action naming Lear Capital. That is not proof of absence. Regulatory databases, state matters, private lawsuits, complaints, and nonpublic inquiries are different things, and search coverage is imperfect.
Does Lear Operate in New York Today?
We removed the site's old blanket claim about New York availability because we did not find reliable current evidence supporting it. The 2022 New York order describes reforms to Lear's business practices in New York, not a permanent ban. Verify current state availability directly with Lear before relying on an older affiliate page.
What to Do Before Buying
- Ask for the exact product name, mint, weight, purity, quantity, and retail price.
- Ask Lear to state the spread percentage on each product in writing.
- Ask for the same-day buyback quote on the same products.
- Get the full custodian/storage fee schedule and identify the actual custodian and depository.
- Ask whether a fee-waiver promotion requires limited-mintage or other higher-premium products.
- Confirm exactly when the 24-hour cancellation window begins and how to cancel.
- Compare the written quote with at least one other dealer before funding.
See our full Lear Capital review, Gold IRA scam and enforcement examples, Gold IRA fees explained, how to check a Gold IRA company's record, and our current provider comparison.
Frequently Asked Questions
Is Lear Capital a scam?
This page does not reduce the record to a one-word label. Lear is a real dealer that has operated since 1997. Regulators in New York, Los Angeles, and multiple states alleged deceptive pricing, fee-disclosure, securities or commodities, or marketing practices, and those matters were resolved through settlements or Lear's confirmed Chapter 11 plan. Read the documents and compare written quotes.
Is Lear Capital legitimate?
Lear Capital is a real operating precious-metals dealer. Its regulatory and bankruptcy history is also part of its record. For a consumer, the practical test is whether the exact product, spread, account costs, buyback quote, custodian, storage, and cancellation terms are clear in writing before money moves.
What did New York allege against Lear Capital?
The New York Attorney General alleged that Lear charged undisclosed commissions up to 33% on more than $43 million in sales to nearly 1,000 New Yorkers and violated state registration requirements. The case was resolved by a $6 million consent order in 2022.
What happened in the Los Angeles case?
The Los Angeles City Attorney brought a 2019 enforcement action alleging unfair and deceptive practices involving fees and disclosures. A stipulated judgment entered in 2022 provided $2.75 million in monetary relief, with up to $2.475 million for customer compensation. The judgment says it is not an admission of fault or liability.
What was the multistate Lear Capital settlement?
State regulators investigating Lear reached a settlement embodied in its Chapter 11 plan. Regulator notices describe a $5.5 million fund for qualifying investors who purchased precious metals from Lear, including transactions from January 1, 2016 through March 3, 2022, plus changes to sales and disclosure practices.
Did Lear Capital file bankruptcy?
Yes. Lear filed Chapter 11 and continued operating. The later confirmed plan incorporated the multistate customer-compensation and business-practice settlement. Chapter 11 is relevant here because the plan carried that regulatory resolution, not simply because it was a reorganization.
Does Lear Capital operate in New York today?
We did not verify Lear's current state-by-state availability in this review. The 2022 New York order required changes to Lear's business practices in New York. Ask Lear directly for current availability and do not rely on older affiliate statements saying New York is unavailable.
- NY AG 2021 complaint announcement
- NY AG 2022 resolution
- Los Angeles stipulated judgment
- Michigan AG — multistate bankruptcy resolution
- Georgia Secretary of State — multistate resolution
- Lear current fee guide · Lear current transaction terms
- BBB · Trustpilot · ConsumerAffairs
This page is educational only and is not legal, tax, financial, retirement, or investment advice.