Tuesday, October 3, 2023

Secretary Michael Watson Announces Refunds for Clients of Precious Metals Firm

JACKSON, Miss. – Secretary of State Michael Watson and the Mississippi Secretary of State’s Office have announced the Securities Division’s election to participate in the coordinated settlement of claims with True Bullion LLC DBA Gold Silver International Exchange DBA GSI Exchange LLC (GSI Exchange). 

The settlement permits 11 clients located in Mississippi to elect to receive a refund of up to $659,000 in principal 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, clients pay a hefty price, but this case is different. Today’s settlement financially benefits clients by requiring GSI Exchange to return money to Mississippians who elect to participate," said Secretary Michael Watson. "Yet again, our Securities Division continues to ensure the hard-earned money of our citizens is protected."  

The settlement is the result of the coordinated work of state securities regulators from Alabama, Arkansas and Texas. 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 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 began negotiating a resolution of claims to benefit investors located in the 44 states where GSI Exchange sold precious metals.  As part of the resolution, state securities regulators may elect to enter a settlement with GSI Exchange to require refund principal to clients in their respective states. 

Mississippians who purchased precious metals prior to July 22, 2021, are eligible for refunds and will receive instructions and other relevant information.

For questions, please contact the Securities Division at (601) 359-1334 or securities.customerservice@sos.ms.gov.