GSPartners securities fraud cease & desist from Arkansas
GSPartners, Swiss Valorem Bank and owner Josip Heit have received a securities fraud cease and desist from Arkansas.
The Arkansas Securities Department … has received certain information and has in its possession certain evidence indicating that GS Partners Global, Swiss Valorem Bank and Josip Heit have violated provisions of the Arkansas Securities Act.
ASD’s investigation into GSPartners and Heit began in October 2023, as part of a wider joint operation between US and Canadian authorities.
As part of their particular investigation ASD spoke to at least one GSPartners’ promoter based in Arkansas.
On October 12, 2023, Staff identified a potential Promoter for GS Partners located in Arkansas, and subsequently initiated contact with the Arkansas Promoter on social media.
The Arkansas Promoter regulatory posts on various social media about GS Partners and opportunities for residents of Arkansas to invest with GS Partners.
During the Staff’s communications with the Arkansas Promoter, Staff affirmatively stated they were located in Arkansas.
The Arkansas Promoter touted the supposed investment success that GS Partners has provided investors.
The Arkansas Promoter stated that GS Partners and Lydian World pay daily and weekly returns to investors.
The Arkansas Promoter provided a blog link with additional information about GS Partners and exactly how a potential investor could get started making 5%-25% weekly.
When asked follow-up questions regarding the specifics of investing in GS Partners, the Arkansas Promoter would either redirect the conversation or not respond at all.
The Arkansas Promoter’s responses appeared to be scripted to encourage the use of, and to drive potential investors to, the GS Partners website.
The Arkansas Promoter provided no additional disclosures or information about the generation of returns through investing with GS Partners.
Disclosure failures from GSPartners itself are also noted in ASD’s order.
Specifically, that GSPartners fails to disclose to consumers the
- identity of all officers, directors, and persons in control of GSPartners and other related entities;
- business repute, qualifications and experience of all officers, director and persons in control of GSPartners and related entities;
- physical location of the offices of GSPartners and other related entities;
- assets, liabilities, revenue and other financial information for GSPartners and other related persons and entities; and
- legal relationship, including the existence and material terms of any contracts or affiliations between GSPartners and other related persons and entities.
Various regulatory disclosure failures with respect to GSPartners’ certificates investment scheme were also noted, as well as the firm’s illegal use of the term “bank”.
Swiss Valorem Bank and GS Partners are using the term “bank” in the name of their investment platform and are touting traditional banking and financial services despite the fact that they are not FDIC-insured or licenses or chartered as a bank by the Arkansas State Bank Department, or registered with the Department.
The use of the term “bank” creates an air of legitimacy and is materially misleading and likely to deceive the public because investors in (metacertificates) … and other products promoted by Swiss Valorem Bank and GSPartners (promoters) residing in Arkansas are not protected by FDIC insurance or state laws designed to protect banking consumers.
Following their investigation, ASD concluded
GS Partners, controlled by Heit, is perpetrating numerous fraudulent investment schemes that are threatening immediate and irreparable harm to investors located in Arkansas, nationwide and internationally.
ASD cites Josip Heit (right) as
CEO, Chairman of the Board and/or control person GSPartners, as well as other companies associated or affiliated with GS Partners.
Heit is not a United States citizen. Heit maintains (a) Dubai, UAE mailing address … another in Romania, and a residential address in London, UK.
Heit has never been registered with the Department in any capacity, including, but not limited to, as a broker-dealer agent, investment adviser representative, or agent of an issuer.
Named “companies associated or affiliated with GSPartners” by the ASD include;
- GSB Gold Standard Bank LTD, dba GS Smart Finance
- Gold Standard Partners
- GSB Gold Standard Banking Corporation PLC
- GSB Gold Standard Corporation AG
- GSB Gold Standard Pay Kommanditbolag, aka GSB Gold Standard Pay
- GSB Gold Standard Pay LTD
- GSB Gold Standard Trade
- Lydian World and
- WealthBuilders Worldwide
WealthBuilders Worldwide is a US-based GSPartners promotion team run by Michael Dalcoe and Nathaniel Hines.
Dalcoe is noted by the ASC as an additional individual of interest;
GS Partners does business through the following individuals and leaders in its group of affiliated entitites and platforms.
Michael Lynn “El” Dalcoe is a resident of the state of Georgia, (and is) identified as a GS Partners Crown Ambassador and a representative of WealthBuilders.
Bruce Innes Wylde Hughes is identified on GS Partners presentations as the GSB corporate trainer.
Aline Lima is the Partner Relationship Manager, serves as an Advisory Member of GSBDSwiss, a partner of Respondent Swiss Valorem Bank, and is described by Heit as a “high executive”.
Dirc Zahlmann is identified in GS Partners presentations as GSB Head of M&A and Marketing Advisor.
Hughes, Lima and Zahlmann all share the same Dubai, UAE business address as the other entities.
One interesting detail in ASD’s order is a potential tie-in to the Arkbit Ponzi scheme.
Coincidentally, on October 18, 2023, while viewing a GSPartners Facebook page during the pendency of this investigation, Staff discovered an Arkbit promotion post created by GS Partners.
As juicy as a connection between Arkbit and GSPartners would be, I believe this is likely a promotional post on a public GSPartners named FaceBook page/group.
Nonetheless, ASD’s order states;
Staff has not found a connection between the (GSPartners) Respondents and Arkbit, other than GS Partners’ direct promotion of this fraudulent enterprise on FaceBook.
Staff is [sic] highly concerned that Arkbit (is) connected to the (GSPartners) Respondents and that the Respondents are attempting to continue to perpetuate fraud through Arkbit or assist Arbit in perpetuating fraud on Arkansas investors.
ASD brings it up in light of a previously issued Arkbit cease and desist, and ongoing efforts to combat reload scams.
As a result of committing securities fraud in Arkansas, ASD has ordered
GS Partners Global, Swiss Valorem Bank, and Josip Heit to immediately CEASE AND DESIST from … further violations of (the) Arkansas Code …, refrain from acting as issuers of unregistered, nonexempt securities … and refrain from perpetrating securities fraud.
BehindMLM also recently confirmed ongoing CFTC and SEC investigations into GSPartners.
As part of a joint operation with their US counterparts, earlier this week the British Columbia Securities Commission took further action against three GSPartners promoters.
South Africa’s FSCA also issued a GSPartners securities fraud warning on November 22nd.
Given the scope of GSPartners’ fraud across the US and involvement of federal regulators, it’s highly likely the DOJ are also building a criminal case.
To date neither Josip Heit or any GSB executives have addressed the GSPartners regulatory enforcement actions.