GSI Exchange Lawsuit: Latest Updates and News

In today’s precious metals market, every company seems to sing the same tune: reliability and transparency. But with so many claims swirling around, it’s crucial for investors to dig deeper.  After all, your hard-earned money deserves a trustworthy partner.

GSI Exchange, a well-known coin and precious metals dealer, prides itself on being a reliable and transparent choice.  

But before you jump in, let’s take a closer look at their legal history.  Do any lawsuits linger in their past?  By uncovering GSI Exchange lawsuits, we can help you decide if this dealer is truly the right fit for your precious metals journey.

Current GSI Exchange Lawsuit Status 

Our investigation into GSI Exchange’s legal history revealed a cause for concern for potential investors.  We searched reputable legal databases like Casetext, UniCourt, and Justia and found multiple lawsuits against GSI Exchange.

One lawsuit, filed by the California Department of Financial Protection and Innovation (DFPI), alleges concerning practices.  The DFPI claims that GSI Exchange failed to disclose crucial information regarding the markup, or “spread,” on precious metals purchased by investors.  

This lack of transparency extends to the risks involved in selling securities to acquire precious metals.  According to the DFPI, these actions violate both the California Commodity Law of 1990 and the Corporate Securities Law of 1968.

Let’s dig deeper into these allegations and see what these lawsuits are about against GSI Exchange.  This will help you understand the potential impact on investors considering GSI Exchange for their precious metals needs.

What GSI Exchange Lawsuits Are About 

GSI Exchange has faced several lawsuits related to its business practices. Here are two notable cases:

Texas State Securities Board (TSSB) Settlement (September 2023)

The Texas State Securities Board (TSSB), along with the Alabama Securities Commission and the Arkansas Securities Department, alleged that GSI Exchange was acting as an unregistered investment adviser. 

GSI Exchange lawsuit involving TSSB

They claimed that GSI failed to disclose information material to the “spread” or markup on precious metals paid by investors and didn’t adequately disclose the risks associated with liquidating securities to purchase precious metals. 

As a result, GSI reached a multi-state settlement, allowing eligible clients to receive a refund of their purchase price and fees previously paid to GSI.

These clients can choose to return their precious metals to GSI, effectively unwinding their transactions.

Iowa Refunds (November 2023)

Fourteen Iowans who bought gold and silver coins from GSI Exchange are eligible for $788,000 in refunds as part of a settlement. 

GSI Exchange lawsuit in Iowa

The settlement is the result of the coordinated work of state securities regulators from Alabama, Arkansas, and Texas, who filed actions that 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. ‘

Clients residing in Iowa who purchased precious metals from GSI Exchange before July 22, 2021, will be eligible for refunds and will receive instructions and other relevant information from GSI Exchange.

These legal actions highlight concerns related to GSI Exchange’s business practices and investor protection.

Other GSI Exchange Lawsuits 

Lawsuit 1. GSI Exchange Vs Jeffrey W. Witt

GSI Exchange lawsuit against Jeffrey

On September 24, 2020, GSI Exchange initiated legal action against Jeffrey W. Witt by filing a contract-debt collection lawsuit. Allegedly, this action was taken due to unresolved financial obligations. 

The case, which unfolded in the Los Angeles County Superior Courts at the Santa Monica Courthouse in Los Angeles, California, remains pending. 

The nature and specifics of the debt involved have not been disclosed publicly, and both parties await further proceedings to determine a resolution.

Lawsuit 2. Cynthia Abrams Vs Gsi Exchange

Cynthia Abrams filed a labor-wrongful termination lawsuit against GSI Exchange, a Florida corporation, on December 30, 2021, in the Los Angeles County Superior Courts, Van Nuys Courthouse East, also located in Los Angeles, California. 

The lawsuit centres around allegations of wrongful termination by GSI Exchange, with Cynthia Abrams seeking legal redress for the purported unjust dismissal. Currently, the case awaits adjudication by Judges Valerie Salkin and Huey P. Cotton.

Lawsuit 3. GSI Exchange Vs Mark Cowper

GSI Exchange lawsuit involving Mark Cowper

Another contract-debt collection lawsuit was initiated by GSI Exchange against Mark Cowper on September 24, 2020, in the Los Angeles County Superior Courts, Santa Monica Courthouse, situated in Los Angeles, California. 

The case alleges outstanding contractual debts owed to GSI Exchange by Mark Cowper. Judges Lisa K. Sepe-Wiesenfeld, Mark A. Young, and Mark H. 

Epstein presides over this ongoing legal matter, with the case status currently pending resolution through further legal proceedings.

About GSI Exchange 

Established in 2014, GSI Exchange operates as a coin and precious metals company, specializing in wholesale trading and offering Gold and Silver IRA products tailored for individual investors.

GSI Exchange home

Situated in Palm Beach Gardens, Florida, the GSI Exchange management team boasts a collective experience exceeding 75 years in the financial industry.

At the helm of GSI Exchange is Senior Partner Anthony Anderson, a distinguished coin broker with close to two decades of senior-level expertise. 

His illustrious career includes collaborations with some of the largest gold and silver dealers in the US, coupled with over ten years of experience in the financial sector.

The company prides itself on transparency, providing comprehensive information about its entire team, complete with background checks from the National Ethics Association. 

Within the team, dedicated members specialize in handling IRA services, while Account Executives are on hand to assist individual customers with their accounts and purchases.

Pros and Cons of Investing with GSI Exchange 

Pros of GSI Exchange:

  • Offers online accounts with access to current prices of gold and silver products.
  • Provides bid and ask prices for comparison, allowing informed decision-making.
  • The online dashboard enables portfolio management and additional product purchases.
  • Provides shipping information and access to educational resources like books, infographics, and articles.
  • Offers Global Market Graphs for market overview and portfolio tracking.

Cons of GSI Exchange:

  • Multiple GSI Exchange lawsuits involving contractual disputes and failure to disclose material information.
  • Customer complaints regarding shipping timeframes for gold or silver purchases.
  • Limited availability of Platinum and Palladium products.
  • Specializes primarily in coins and bars from select mints, potentially limiting investment options.
  • Possible backorders due to delays in receiving products from vaults or wholesalers, leading to shipment delays.

Is GSI Exchange a Scam or Legit?

GSI Exchange currently holds an A+ rating with the BBB, although it is not BBB Accredited. Over the past three years, GSI Exchange has received only one complaint regarding delivery timeframes. Overall, customer feedback has been predominantly positive. 

It’s worth noting that GSI Exchange primarily engages in the wholesale buying and selling of gold and silver products.

While they do provide a price range on their website, the actual amount you pay may vary as prices fluctuate daily. To obtain a guaranteed price, customers must contact their customer support line and speak with a representative.

You can also read: Noble Gold lawsuit and American Hartford Gold lawsuit.

Additionally, while there have been some GSI Exchange lawsuits, particularly relating to contractual disputes and allegations of failure to disclose material information, it’s important to consider the context and outcomes of these legal matters when evaluating the company’s reputation and reliability.

While there are no significant red flags, it’s advisable to compare fees and prices between GSI Exchange and other companies before making a decision.

GSI Exchange

GSI Exchange is a great company with a large selection of products on offer. However, they have faced several lawsuits as well.

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