GSPartners, a company founded by Josip Heit in December 2017 under the name GSB Gold Standard Banking Corporation AG, has garnered attention for its controversial business practices. Initially operating under the guise of a legitimate financial institution, it soon became clear that GSPartners was not what it appeared to be.
Recent filings, including a report with the Dusseldorf District Court, have exposed troubling details about the company’s operations and its ties to a complex web of shell companies, Ponzi schemes, and fraudulent activities.
A Deceptive Rebranding: From Gold Standard Banking to GSPartners
The story of GSPartners begins with the company’s early days as the GSB Gold Standard Banking Corporation AG, a business supposedly dealing with the import, export, and distribution of chemical goods. However, in a move to distance itself from the growing allegations of fraud, Josip Heit rebranded the company as GSB Gold Standard Corporation AG.
This was followed by a relocation of the business’s official address from Hamburg to Dusseldorf on April 26, 2018, using a virtual office address provided by Regus, a well-known company that offers virtual office services. This move was likely part of an attempt to obscure the company’s activities and avoid scrutiny from regulators.
The rebranding was not just cosmetic; it was part of a broader strategy to shift the company’s focus away from the public’s growing awareness of its involvement in financial scams, particularly the Ponzi scheme that had already begun to unravel within its business structure. Notably, the company’s filings make no mention of its infamous involvement in multi-level marketing (MLM) schemes or the notorious G999 Ponzi token.
The Ponzi Scheme at the Core of GSPartners
At its core, GSPartners has been operating as a Ponzi scheme, relying on new investors to pay returns to earlier ones. The company launched the G999 cryptocurrency, which was marketed as the key to a promising new digital economy. However, the token’s real value was inflated artificially through wash trading — the process of buying and selling the token between fake accounts to create the illusion of a thriving market. This type of market manipulation is a hallmark of Ponzi schemes, where the money from new investors is used to pay returns to previous ones, rather than generating legitimate profits.
The G999 token’s failure to achieve any real value became apparent as its price continued to drop, leaving investors with worthless coins. In response, GSPartners created additional tokens, like LYS and GEUR, in an attempt to maintain the illusion of growth. However, these too have shown signs of decline, with GEUR struggling to maintain credibility despite its ties to the euro.
Josip Heit’s involvement in cryptocurrency scams stretches back to his association with Karatbars International, a company notorious for its involvement in the KBC Ponzi scheme. Heit’s role in the promotion of KBC and its associated coin raised red flags early on. Despite the failure of the KBC coin, Heit leveraged his reputation within the crypto space to launch GSPartners and promote the G999 token, which, like KBC, was built on speculative and fraudulent foundations.
A Network of Shell Companies and Fraudulent Ties
One of the key aspects of GSPartners’ operations is its use of shell companies to obscure the true nature of its business. According to filings, Josip Heit owns multiple entities, including Gazella Corporate Capital Group, which helps funnel funds into both domestic and foreign companies. These entities, while appearing legitimate on paper, serve primarily to launder the funds coming from the Ponzi scheme.
Despite these troubling revelations, the German financial regulator, BaFin, has yet to take significant action against Heit and his network of shell companies. This lack of regulatory enforcement has allowed GSPartners to continue operating with relative impunity, attracting unsuspecting investors from around the world.
The Lawsuit Against YouTube and Defamation Claims
In an attempt to quash the growing backlash, GSPartners filed a lawsuit against Christopher Saunders, a whistleblower who exposed the company’s fraudulent practices. Saunders had been involved in uncovering the connections between Heit’s operations and the Karatbars KBC scam, and his public statements were viewed as damaging to the reputation of GSPartners. The lawsuit, however, was dismissed in July 2022, as Saunders provided evidence that he had been paid $5,000 in Bitcoin by Ovidiu Toma, a former Karatbars executive, to make false claims against the company.
Interestingly, Toma, who has been providing evidence since 2020 implicating Harald Seiz (the CEO of Karatbars), has also played a role in uncovering the fraudulent activities tied to GSPartners. Despite the dismissal of the lawsuit, the case highlighted the lengths to which GSPartners was willing to go to protect its reputation and silence those who exposed its scams.
The Failed Launch of the JONE Coin
In another attempt to salvage its credibility, GSPartners launched the JONE coin, allegedly backed by a property in Dubai’s J One Tower. However, the developers of the tower, RKM Durar Properties, denied any affiliation with the coin or the company. The launch of JONE was just another example of GSPartners’ attempts to create an illusion of value and legitimacy, despite the fact that the coin was essentially another Ponzi token.
The GSPartners Compensation Plan: A Closer Look
GSPartners operates under a multi-level marketing (MLM) structure, where affiliates earn commissions based on their recruitment of new investors. The compensation plan is highly complex, with multiple levels of affiliation and commission. However, the real value of these commissions is dubious, as the bulk of the company’s revenue comes from the sale of its G999 tokens rather than any actual business activity.
Affiliates are encouraged to purchase G999 tokens in large quantities, often paying in cryptocurrency like Bitcoin or Ethereum. The tokens are sold at inflated prices, and investors are promised substantial returns. However, as with most Ponzi schemes, the returns are only paid out as long as new recruits continue to invest. Once the flow of new money slows down, the scheme collapses, leaving many investors with losses.
The Red Flags of GSPartners
There are several key indicators that suggest GSPartners is a scam. These include:
- Unclear Business Model: Despite claiming to offer cryptocurrency and blockchain education, GSPartners offers no real transparency into its operations or the actual utility of its tokens.
- Aggressive Recruitment: The compensation plan heavily incentivizes recruitment over actual product or service sales, a hallmark of a Ponzi scheme.
- Unregistered Securities: GSPartners operates in jurisdictions where it is not authorized to offer securities. This makes its business practices highly illegal in many countries.
- Fake Promises of High Returns: The company promises high returns on investment, which is a classic warning sign of a Ponzi scheme.
Conclusion: A Deceptive Operation With No Real Value
GSPartners, led by Josip Heit, is a classic example of a Ponzi scheme disguised as a legitimate investment opportunity. By leveraging the cryptocurrency craze and using tactics like MLM marketing, token manipulation, and shell companies, Heit has created a complex web of deception that has swindled millions of dollars from unsuspecting investors.
Despite mounting evidence of fraud and numerous investor complaints, GSPartners continues to operate, largely unchecked by regulators. Investors should be wary of any company that promises high returns with little to no transparency, especially in the cryptocurrency space. If something seems too good to be true, it probably is. Always do thorough research before committing your money, and remember that when it comes to online investments, caution is key.
Protecting Yourself from MLM Scams
Here are a few key takeaways to protect yourself from falling victim to similar scams:
- Avoid Upfront Fees: Legitimate businesses do not require large upfront investments or membership fees. Be wary of any MLM opportunity that asks for significant amounts of money before you even begin selling products or recruiting others. Research the Company: Before getting involved with any MLM company, research their track record, customer reviews, and any complaints filed against them. This will help you determine if the company is reputable and trustworthy.
- Look for Red Flags: Promises of quick wealth or “guaranteed” success are often a sign of a scam. Look for red flags such as high-pressure sales tactics, overly aggressive recruitment methods, or a lack of transparency about the products or services being offered. If a company is not willing to provide clear information about their business model or compensation plan, it’s best to steer clear. Remember, it’s always better to be cautious and do your due diligence before diving into any MLM opportunity. By taking the time to research, trust your instincts, and watch for warning signs, you can protect yourself from falling victim to potential scams in the MLM industry.
- Do Your Research: Check reviews, seek out testimonials from real customers, and investigate the company’s history. Look for any red flags such as excessive focus on recruitment rather than product sales, high start-up costs, or pressure to buy inventory. It’s also important to consider whether the products or services being offered have genuine value and appeal to a wide audience. By being thorough in your research and carefully evaluating all aspects of the MLM opportunity, you can make an informed decision about whether it’s the right fit for you. Remember, your time and money are valuable, so it’s essential to protect yourself from potential scams in the MLM industry.
- Trust Your Instincts: If something feels too good to be true, it probably is. Don’t be swayed by promises of quick and easy money in MLM opportunities. Remember that success in any business venture takes hard work, dedication, and a solid understanding of the industry. If you have doubts or suspicions about a particular MLM opportunity, trust your instincts and proceed with caution. It’s better to be safe than sorry when it comes to protecting yourself and your finances. Do your due diligence, ask questions, and seek advice from trusted sources before making any commitments in the MLM world.
