2023
Agency Leadership Ensures Clients Can Receive Return of Principal
Securities Commissioner Travis J. Iles announced the Texas State Securities Board’s settlement of claims with True Bullion LLC DBA Gold Silver International Exchange DBA GSI Exchange LLC and its principal, Anthony Anderson. The settlement ensures 43 Texas residents, as well as eligible investors residing in other states joining the settlement, can elect to receive a return of principal they invested in precious metals. Clients electing to receive their principal will be required to return precious metals to GSI Exchange, essentially unwinding their transactions.
“In far too many cases, alleged violations of investor protection laws correlate with significant financial losses,” said Commissioner Iles. “The settlement with GSI Exchange and Mr. Anderson is different. Instead of recognizing these financial losses, the settlement financially benefits clients that purchased precious metals. The agency appreciates GSI Exchange’s efforts in drawing the matter towards a conclusion and enhancing their compliance with laws designed to protect our investors.”
Texas coordinated its work with securities regulators from Alabama and Arkansas. The Alabama Securities Commission and Texas State Securities Board filed administrative enforcement actions in July 2021, and the Arkansas Securities Department filed a third case in February 2022. The three actions generally alleged that GSI Exchange was acting as an unregistered investment adviser and not disclosing information material to the “spread,” or markup, paid by clients.
The three agencies thereafter began negotiating a resolution that benefits investors located in the 44 states1 where GSI Exchange sold precious metals. As part of the settlement, state securities regulators operating in those 44 states can elect to participate in a substantively similar resolution with GSI Exchange—meaning that GSI Exchange will also be required to refund principal upon the request of clients residing in those states.
“The settlement is indicative of the priorities of the agency and its enforcement program,” said Enforcement Director Joe Rotunda. “Our cases typically do not begin and end with the entry of an enforcement action. Instead, we often continue to work to get companies into compliance while ensuring clients are treated fairly and their funds are safe, secure, and available to them.”
Enforcement Director Rotunda recognized the work of the Alabama Securities Commission and Arkansas Securities Department, as well as the cooperation of GSI Exchange and Mr. Anderson.
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1 The 44 states include all states except Maine, New Hampshire, North Dakota, Rhode Island, South Dakota, and Vermont.