San Diego Gold Merchant: Bank Frozen Funds After Elderly Scam

A San Diego precious metals dealer lost access to his primary business account after Bank of America determined that two of his customers were victims of a gold bar scam. Kyle Horn, owner of Bullion Standard, filed a lawsuit against the bank after it permanently closed his account and froze more than $50,000 in remaining funds.

The dispute stems from a fraud scheme targeting seniors in San Diego County. Prosecutors describe the scam as a growing threat that typically begins with a fake computer alert claiming the victim’s device was hacked. A caller posing as a government official then convinces the victim that their bank accounts are compromised. To protect their savings, the victim is instructed to purchase gold bars. A courier collects the bars, and the fraudsters disappear with the metal.

Horn’s business was caught in the middle of two such incidents in early 2025. Two clients made high-value purchases through Bullion Standard’s online platform. Horn states his company did not participate in the fraud but faced immediate financial repercussions when the transactions were flagged.

In March 2025, Bank of America sent letters dated March 11 and March 12 informing Horn that six transactions totaling $456,000 were held for investigation. Horn received a text message alert that his account balance had dropped significantly, initially showing a pending debit of negative $456,000. He described the period between March 11 and March 17 as a time when the business could barely operate because the funds were inaccessible.

The bank eventually released the held funds after concluding the customers were defrauded by a third party rather than by Bullion Standard. However, weeks later, Bank of America notified Horn that his commercial account would be closed permanently. The notification stated that the remaining funds, which exceeded $50,000 at the time, would be frozen while the bank verified the source of the money.

Horn argues that the closure hindered his business operations while competitors continued to sell. His company, which reports annual sales of over $100 million, has since updated its contracts to include warnings about gold bar scams. The business also implemented additional checks for large purchases made by older customers. Horn noted that staff now ask specific questions when they identify a senior making a high-volume buy.

In a statement sent to NBC 7 Responde, Bank of America said it takes account decisions seriously and works to resolve issues quickly. The bank explained that accounts are closed when justified by factors such as repeated fraud complaints, in accordance with its deposit account contract. The institution told Telemundo 20 Responde that the ongoing litigation had taken priority over its internal investigation into the closed account.

San Diego County prosecutors warn that any request from a stranger to buy gold to protect savings is a likely sign of fraud. This applies even if the caller claims to represent a government agency. The case illustrates how third-party scams can ripple through legitimate businesses, leaving merchants to navigate the financial fallout of customers’ losses.