Gold dealer sues bank after account freeze

Kyle Horn, owner of the San Diego-based precious metals company Bullion Standard, has filed a lawsuit against Bank of America. Horn alleges that the bank permanently closed his business checking account and froze over $50,000 in funds after an investigation into a gold bar scam that affected two of his customers. The legal action stems from a period in early 2025 when the bank temporarily held hundreds of thousands of dollars in pending transactions.

The financial disruption began in March 2025 when Horn received an alert indicating his account balance had dropped from $100 to negative $456,000. The bank sent letters on March 11 and 12 informing him that six transactions had been flagged as unauthorized and were under investigation. Horn stated that the company was effectively unable to operate between March 11 and March 17 while the funds were held. Bank of America eventually released the pending charges after determining that the two customers had been defrauded by a third party, not by Bullion Standard.

Weeks after the funds were released, the bank notified Horn that his commercial account would be permanently closed. The bank stated that the remaining balance would be frozen while it verified the source of the funds. Horn reported that his business held more than $50,000 at the time of the closure. He noted that competitors continued to sell during this period while his company was unable to process transactions.

The underlying fraud involved a scheme described by the San Diego County District Attorney as a rapidly growing threat to older adults. The scam typically starts with a victim receiving a computer alert claiming their device has been hacked. A caller posing as a government official then convinces the victim that their bank accounts are compromised. To protect their money, the victim is told to buy gold bars, which a courier collects for safekeeping during an investigation. The gold is then never returned.

Bank of America told NBC 7 Responde that the ongoing litigation had taken priority over its internal investigation, which is why the case had not yet advanced further. In a statement, the bank said it takes account decisions seriously and works to resolve client matters quickly. The bank explained that accounts are closed when justified by factors such as repeated fraud complaints, in accordance with its deposit account contract.

Horn maintains that his company did not participate in the fraud and argues that merchants have limited ability to identify when a legitimate transaction becomes illegitimate due to a third party's actions. Since the incident, Bullion Standard has added warnings about gold bar scams to its client contracts. The company has also implemented extra precautions, such as asking additional questions, when older adults make large volume purchases. Horn said the issue has not recurred since these measures were introduced.