San Diego Gold Dealer Sues Bank Over Frozen Account After Client Scam

Kyle Horn, the owner of San Diego based Bullion Standard, has filed a lawsuit against Bank of America after the bank permanently closed his business account. The closure froze more than $50,000 in funds and halted operations for the online precious metals retailer. Horn says the dispute stems from a gold bar scam that targeted two of his customers.

Horn states that Bullion Standard generates over $100 million in annual sales through its internet sales platform. The company sells gold and other metals to individual buyers. In early 2025, two of these customers made high value purchases. Both were later identified as victims of a fraud scheme involving gold bars. Although the bank eventually determined that the customers were defrauded by a third party and not by Bullion Standard, the financial fallout for the dealer continued.

The fraud typically begins with a computer alert warning the victim that their device has been hacked. A fraudster then contacts the victim, posing as a government official, and claims that the victim's bank accounts are compromised. To protect their money, the victim is told to purchase gold bars. A messenger collects the bars to keep them safe during an investigation. The fraudsters keep the gold and disappear once the transaction is complete. The San Diego County District Attorney's office describes this as a rapidly growing scam that primarily targets older adults and can cause devastating financial losses.

Horn first noticed the banking issue when his phone received a text alert. He woke up to a notification that his account balance had dropped from $100. He initially thought the alert was an error. Upon checking the account, he found a negative pending debit of $456,000. Horn said he and his team panicked at the sight of the figure. Bank of America sent letters dated March 11 and March 12, 2025. The letters stated that the bank had retained six transactions related to the two clients. The bank said the operations were reported as unauthorized and were under investigation. Horn noted that the business was effectively unable to operate from March 11 through March 17.

After the bank resolved the pending debits and acknowledged the clients were victims of a third party, the problems did not end. Weeks after the retained funds were released, Bank of America notified Horn that his commercial account would be closed permanently. The bank froze the remaining funds while it reviewed their source. Horn said the account held more than $50,000 at the time. During this period, competitors continued selling while Bullion Standard waited. Horn observed his competitors increasing their sales volume while his business sat idle.

Bank of America told NBC 7 Responde that the ongoing litigation took priority over its internal investigation into the closed account. In a statement, the bank said it takes account decisions seriously and works to resolve issues quickly. The bank added that accounts are closed based on various factors, including repeated fraud complaints, in accordance with its deposit account contract.

Horn argues that the fraud was committed by a third party. He says identifying when a legitimate transaction becomes illegitimate due to outside actions is difficult for merchants. Since the incident, Bullion Standard has added warnings about gold bar scams to its customer contracts. The company also implemented additional checks for large purchases made by older adults. Horn says staff now ask questions when they identify a senior making a high volume purchase. He reported that the issue has not recurred since these measures were put in place.

Authorities advise that anyone told to buy gold to protect their money may be a victim of a scam. This warning applies even if the person requesting the purchase claims to represent a government agency. The case illustrates that legitimate businesses involved in transactions with victims can also face financial consequences. Horn is currently litigating against the bank to recover the frozen funds and resolve the dispute.