GSPartners, proprietor Josip Heit and several other executives have been issued an emergency stop and desist by the Texas State Securities Board (TSSB).
The TSSB’s November sixteenth order names the next recipients;
- GSB Gold Commonplace Financial institution (dba GS Good Finance, Gold Commonplace Companions, GSPartners, GS Companions & GSP)
- GSB Gold Commonplace Banking Company PLC
- GSB Gold Commonplace Company AG
- GSB Gold Commonplace Pay Kommanditbolag (aka GSB Gold Commonplace Pay LTD, appearing beneath the model title GSDEFI)
- GSB Gold Commonplace Commerce
- Swiss Valorem Financial institution LTD
- Josip Dortmund Heit (GSPartners’ proprietor)
- Bruce Innes Wylde Hughes (GSPartners Company Coach)
- Aline Lima and
- Dirc Zahlmann (GSPartners CEO)
Collectively, TSSB refers to GSPartners as
a world coalition … of varied fraudulent funding schemes which might be threatening fast and irreparable hurt.
This evaluation relies on a joint investigation by
securities regulators from the USA and Canada, (who) recognized the continued risk introduced by GSB Group and arranged a working group to collectively examine its operations.
BehindMLM has already confirmed ongoing GSPartners investigations by the SEC, CFTC and Alabama Securities Board.
As per TSSB’s filed order, GSB Gold Commonplace Financial institution began off as GCC Gazella Company Capital GmbH, a German shell firm “concerned within the manufacture, import, export and distribution of chemical compounds, plastics, plant safety merchandise, and dyes.”
GCC Gazella Company Capital was owned by Josip and Kristina Heit. TSSB doesn’t state when it occurred, however in some unspecified time in the future GCC Gazella Company Capital modified its title to GSB Gold Commonplace Banking Company AG.
This new shell firm was owned by Josip Heit, Kristina Heit, Ulf Lammers and Andrey Labuzdko.
In 2021, GSB Gold Commonplace Banking Company AG modified its title as soon as once more to Gold Commonplace Company AG.
It’s this firm title that Heit’s GSPartners Ponzi scheme has operated beneath (launched in 2021, the present iteration is “Swiss Valorem Financial institution“).
Heit’s Ponzi scheme is run by means of a collection of “proprietary inner tokens”, which TSSB casts doubt on even present.
The proprietary inner tokens are represented by the tickers GEUR, CVEUR, LEUR and DEUR. They’re extremely illiquid property, will not be traded on exterior cryptocurrency exchanges and don’t have any honest market worth exterior the GSP ecosystem.
Furthermore, Respondent GSP is just not offering shoppers with entry to dam explorers for GEUR, CVEUR, LEUR and DEUR, and they aren’t disclosing info regarding their consensus mechanisms, their contract addresses or their contracts.
Merely put, Respondent GSP is just not offering shoppers with ample info to point out GEUR, CVEUR, LEUR and DEUR truly exist.
In a nutshell, TSSB has decided GSPartners’ MLM alternative constitutes a securities providing.
Respondents GSP and Hughes mistakenly and falsely claimed Respondent GSP makes use of proprietary tokens like CVEUR as an alternative of exterior tokens like BTC and ETH so it could possibly pay rewards while not having a securities license.
Their statements are materially deceptive or in any other case prone to deceive the general public as a result of
-Utilizing inner proprietary tokens corresponding to CVEUR as an alternative of BTC or ETH doesn’t affect the regulation of the Elemental and Success Collection Certificates and investments within the LYS Staking Pool by the Securities Act, and
-The Elemental and Success Collection Certificates are regulated as securities when provided or offered in or from Texas whatever the use inner techniques, ledgers, blockchains, or tokens.
A. Events providing the Elemental Certificates, Success Collection Certificates, and investments within the LYS Staking Pool in or from Texas are providing unregistered securities in violation of Part 4003.001 of the Securities Act, and
B. Events providing the Elemental Certificates, Success Collection Certificates, and investments within the LYS Staking Pool in or from Texas are providing securities in violation of Part 4004.051 of the Securities Act until the events are registered as sellers or brokers.
GSPartners’ use of the phrase “financial institution” in Swiss Valorem Financial institution branding can be a cited regulatory subject;
Respondents Swiss Valorem Financial institution and GSP are utilizing the time period “financial institution” of their names and describing Respondent GSP as a financial institution.
These statements are materially deceptive or in any other case prone to deceive the general public as a result of:
-Respondents Swiss Valorem Financial institution and GSP are providing securities in or from Texas and never licensed or chartered as a financial institution by the Texas Division of Banking, and
-Texas residents that buy Elemental Certificates, Success Collection Certificates, and different merchandise promoted by Respondent GSP will not be protected by FDIC insurance coverage or U.S. legal guidelines designed to guard banking shoppers.
Moreover TSSB additionally cites retaliatory authorized motion initiated by GSPartners. The primary instance is a Virginia lawsuit filed in opposition to Chris Saunders in 2021.
For instance, Christopher Saunders is a resident of Virginia that operated varied social media channels, together with a YouTube channel named Grit, Grind, Gold (@gritgrindgold) for brand new entrepreneurs searching for new methods to earn a living on-line.
He used his social media channels to publish detrimental details about sure members of GSB Group.
On December 16, 2021, Respondent GS Company AG, Respondent Heit, Antonio “Tony” Euclides Meneses De Gouveia (as an unbiased affiliate of Respondent GS Company AG) and Michael Dalcoe (an unbiased affiliate of Respondent GS Company AG) filed a grievance in opposition to Mr. Saunders in GSB Gold Commonplace Company AG et al. v. Saunders, Case No. 1:21-cv-01398-RDAIDD, in the USA District Courtroom for the Jap District of Virginia, Alexandra Division.
The lawsuit claims Mr. Saunders “makes use of his Social Media Channels to publish purported statements of reality associated to numerous firms working within the cryptocurrency house.”
It additionally alleged Saunders printed no less than 99 movies in social media “that broadcast a litany of false and defamatory factual statements concerning GSB.
On August 2, 2022, the case was dismissed with out prejudice by stipulation of all events, together with Respondents GS Company AG and Heit.
TSSB additionally cites GSPartners’ New York Supreme Courtroom petition concentrating on BehindMLM.
Additionally, Behind MLM operates a web site accessible at behindmlm.com.
The nameless principal often known as Oz acknowledged “[t]right here’s a whole lot of garbage MLM evaluate and information websites on the web that masquerade solely as lead technology instruments” and purportedly created the web site to “present the general public with related and
correct MLM info, information, and firm evaluations.”Behind MLM has been posting details about GSB Group and argued its members are operating a Ponzi scheme.
Respondent GS Company AG decided the IP handle for behindmlm.com is hosted by Google, LLC, and that its area is registered with GoDaddy, Inc.
On or about December 20, 2022, Respondent GS Company AG filed a petition within the Supreme Courtroom of the State of New York, County of New York, Index No. 160880, in opposition to Google LLC and Go Daddy Inc.
The petition was verified by Respondent Heit because the Chairman to the Board of Administrators of Respondent GS Company AG.
Respondent Heit licensed the petition, and it describes Respondent GS Company AG as follows:
A. Respondent GS Company AG is “a number one software program producer which, within the IT and Blockchain sector, provides subtle “white label” software program merchandise in addition to {hardware} buying and selling modules and platforms to be used within the monetary trade,” and
B. Respondent GS Company AG “gives a set of high-quality companies that rely by itself blockchain, and collectively kinds an elite group and a structured ecosystem.
Amongst these companies is a decentralized cryptocurrency, G999, which makes use of blockchain expertise to supply its customers with a dependable, safe, and confidential service to successfully construct and develop non-public financial relations.”
It additionally alleges the unknown particular person or people who function behindmlm.com have posted “quite a few defamatory and false statements about GSB, labeling GSB as a fraud and a Ponzi scheme.”
It sued Google, LLC, and Go Daddy, Inc., to compel them to establish the person or people working the web site as a result of its “international popularity for integrity and transparency is of paramount significance to its enterprise.”
On November 3, 2023, the Courtroom denied motions to quash the subpoenas filed by behindmlm.com. On the identical day, counsel for Behind MLM filed a discover of enchantment to the Supreme Courtroom Appellate Division, First Division.
Respondent Swiss Valorem printed the next details about the litigation involving Behind MLM on the Swiss Valorem Web site:
… On account of present ongoing authorized motion in opposition to a gaggle of criminals, and the platforms they use for his or her criminality, our authorized crew, alongside with the Model and Relationship Administration crew, have issued directions to suspends [sic] the accounts of a small variety of offending members who’re working with the criminals to additional their trigger.
Whoever is discovered to be spreading this unlawful content material, may also be thought-about equipment, and their particulars handed over to the authorized crew dealing with these circumstances.
The criminals are utilizing the BehindMLM platform, in addition to smaller platforms to cover their identities…
… We’ll NOT tolerate criminals or acts of abuse in opposition to our model, related manufacturers, services or products.
At time of publication Heit’s retaliatory NYSC petition concentrating on BehindMLM stays energetic.
Along with securities fraud and retaliatory litigation, TSSB additionally notes a number of disclosure violations.
These pertain to GSPartners failing to open up to shoppers, amongst different issues, “the identification of its house owners” and “property, liabilities, income, and different monetary info related to its capitalization and operations”.
Respondents GS Company AG, GSP, Heit, and Zahlmann are deliberately failing to reveal the identification of firms, organizations or initiatives that compromise the blockfolios tied to Elemental Certificates and Success Collection
Certificates.Respondents GS Company AG, GSP, Heit, and Zahlmann are deliberately failing to reveal the operations, income, capitalization, profitability, and site of firms, organizations, and merchandise tied to every blockfolio.
In gentle of TSSB discovering GSPartners is committing securities fraud and different acts that represent “fraud and deceit”, TSSB concludes;
A. Respondents are violating the Securities Act and conducting their enterprise in a way that’s not legally sound, and
B. As described herein, Respondents GSP, Heit, and Zahlmann have carried out an unlawful multilevel advertising system that compensates members for promoting securities in or from Texas with out correct licensure.
GSPartners and all different named respondents have been ordered to
Instantly CEASE AND DESIST from providing on the market any safety in Texas till the safety is registered with the
Securities Commissioner or is obtainable on the market pursuant to an exemption from registration beneath the Texas Securities Act.Instantly CEASE AND DESIST from appearing as securities sellers, brokers, funding advisers, or funding adviser
representatives in Texas till they’re registered with the Securities Commissioner or are appearing pursuant to an exemption from registration beneath the Texas Securities Act.Instantly CEASE AND DESIST from participating in any fraud in reference to the supply on the market of any safety in Texas.
Instantly CEASE AND DESIST from providing securities in Texas by means of a proposal containing a press release that’s materially deceptive or in any other case prone to deceive the general public.
GSPartners is planning to carry a advertising occasion in South Africa on November 18th.
It’s anticipated a number of violations of TSSB’s order can be dedicated on the occasion.
TSSB warns that failure to stick to its issued emergency stop and desist order runs the chance of a wonderful of as much as $10,000, and/or imprisonment for 2 to 10 years.