Business ProfileforGSI Exchange

UPDATE As of September 27, 2023

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.

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.

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.

LINK: https://www.ssb.texas.gov/news-publications/texas-leads-nationwide-action-against-precious-metals-firm

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As of July 22, 2021:
The Texas State Securities Board (TSSB) and the Alabama Securities Commission (ASC) issued cease and desist orders against TRUE BULLION LLC DBA GSI EXCHANGE, directing it to shut down illegal operations in Alabama and Texas.

The Texas and Alabama orders accuse GSI Exchange of engaging in an illegal advisory scheme involving over $32 million. The scam involves 450 investors many of whom are senior citizens. GSI Exchange allegedly told investors the holdings in their retirement portfolios were high risk and they may lose their assets. GSI Exchange is accused of encouraging these investors to liquidate their securities portfolios and use the proceeds to purchase gold and silver coins to the benefit of GSI through high commissions. The orders allege GSI is taking 25+% of investor funds as an undisclosed commission or fee on the front-end of each precious metals transaction.

The orders name Anthony Anderson as the principal of GSI Exchange. Anderson and GSI Exchange are not registered or notice-filed to provide investment advice in Texas or Alabama (as required by state securities law).

For further information:
Investors can contact the ASC at [email protected] and visit its website at https://asc.alabama.gov/ and they can contact the TSSB at [email protected] and visit its website at https://www.ssb.texas.gov/.

Link: https://www.ssb.texas.gov/news-publications/state-securities-regulators-texas-and-alabama-team-protect-senior-investors-and

As of August 28, 2023

A Consent Order regarding unregistered investment adviser activity and untrue statements of material fact made in connection with the sale of precious metals in Arkansas by True Bullion, LLC d/b/a GSI Exchange (“True Bullion”). The Consent Order finds that True Bullion will offer a refund to those investors who purchased precious metals prior to July 22, 2021. This order settles the Cease and Desist Order No. S-21-0009-22-OR02 entered against True Bullion on February 9, 2022.

This Order is not intended to be deemed or used as (a) an admission of, or evidence of, the validity of any alleged wrongdoing or liability; or (b) an admission of, or evidence of, any
such alleged fault or omission of Respondents in any civil, criminal, arbitration, or administrative proceeding in any court, administrative agency, or other tribunal.

LINK: https://securities.arkansas.gov/legal-documents/true-bullion-llc-d-b-a-gold-silver-international-exchange-d-b-a-gsi-exchange-and-anthony-allen-anderson/

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As of February 9, 2022

A cease and desist order concerning unregistered, fraudulent investment adviser activity conducted in Arkansas was issued.

LINK: https://securities.arkansas.gov/legal-documents/true-bullion-llc-dba-gsi-exchange-llc/