Arkansas Securities Department announces refunds for clients of precious metals firm
LITTLE ROCK, Ark. (Aug. 31, 2023) — The Arkansas Securities Department (ASD), along with securities regulators in Alabama and Texas, led a coordinated settlement of claims with True Bullion LLC d/b/a Gold Silver International Exchange d/b/a GSI Exchange. The settlement permits six clients in Arkansas to receive a refund of up to $386,000.00 in principal that was previously paid to GSI Exchange, a precious metals dealer. Clients electing to receive principal will be required to return precious metals to GSI Exchange, essentially unwinding their transactions.
“In too many cases before the ASD, clients pay a hefty price,” said ASD Commissioner Susannah T. Marshall. “This case is different. Today’s settlement financially benefits clients. It requires GSI Exchange to return money to residents of Arkansas that elect to participate in the deal. Actions like this continue to send the message that the ASD is committed to pursuing financial relief for injured Arkansans.”
The settlement is the result of the coordinated work of state securities regulators from Alabama, Texas, and the ASD. The Alabama Securities Commission and Texas State Securities Board filed administrative enforcement actions in July 2021, and the ASD filed a third case in February 2022. The three actions alleged 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 of claims that will benefit investors located in the 44 states where GSI Exchange sold precious metals. As part of the resolution, state securities regulators from those 44 states can elect to enter a settlement with GSI Exchange that will require GSI Exchange to refund principal to clients in their respective states. The multistate investigation into GSI Exchange’s sales activities revealed that the company attracted more than 450 clients from the 44 states, with transactions totaling more than $32 million.
Marshall explained that clients residing in Arkansas who purchased precious metals from GSI Exchange at any time before July 22, 2021, will be eligible for refunds. These clients will receive instructions and other relevant information, and she encouraged them to contact the ASD staff at 501-324-9266 to address questions relevant to the process.
If you have questions or concerns about your investments or financial professional, please contact the ASD at 800-981-4429, or visit the ASD website at www.securities.arkansas.gov.