At least nine Marylanders were misled and invested more than $400,000 in an out-of-state company that turns IRAs into physical metals. Now, those customers can get refunds, Maryland Attorney General Anthony Brown announced Friday.
The settlement is between the state’s Securities Division and the precious metal dealer, GSI Exchange, as well as its senior partner, Anthony Allen Anderson, allowing affected customers to return the metals and reverse their transactions.
“It is our office’s duty to protect Marylanders from financial predators and unsavory business practices,” Brown said in a Friday statement. “People who invest their money deserve to know all the facts and risks before making that investment decision. We will not allow companies to defraud our elderly neighbors into giving up their hard-earned savings.”
GSI Exchange, based in Palm Beach Gardens, Florida, sold to senior citizens and other Marylanders between 2014 and 2021. The company allegedly advised the Maryland customers to sell their securities investments and use the proceeds to open self-directed IRAs to buy physical metals.
But while advising Maryland customers, GSI officials did not disclose the risks and made unverified claims
The company was also “not registered to transact business in Maryland as an investment adviser or as investment adviser representatives,” according to the consent order.
As a result, GSI attracted at least nine Marylanders and more than 450 clients from 44 states, totaling more than $32 million in investments.
Any Maryland client that purchased precious metals from GSI Exchange before July 22, 2021, is eligible for a refund, the Attorney General’s Office said.
Brown’s office reached the settlement by working with state securities regulators in Alabama, Arkansas and Texas.
The affected Marylanders will receive instructions, and Brown said they are encouraged to contact the Securities Division at securities@oag.state.md.us with any questions.
GSI Exchange did not immediately comment on the settlement.
