Historically, South Florida has been a hotbed of precious metal investment frauds including unregistered retail investment firms pushing off-exchange, leveraged precious metal investments. These schemes often make money by charging undisclosed spreads, commissions, fees and interest on loans to purchase precious metals on margin without disclosing the risks. Under these schemes, the unlawful dealer always wins, and the customer usually loses because the costs to maintain the account rise faster than the price of precious metals—requiring liquidation of the accounts.