Swiss Valorem Bank, launched in mid-2023, has been making waves in the investment world. It is the rebranded version of GSPartners, which was originally founded by the notorious entrepreneur Josip Heit. But with its strong presence in the multi-level marketing (MLM) arena, questions about whether it’s just another scam abound.
Is Swiss Valorem Bank a legitimate financial entity or yet another fraudulent operation masking itself under the guise of investment opportunities? In this detailed review, we’ll unpack the truth behind Swiss Valorem Bank, its background, and the red flags you need to watch out for.
Both Ontario Securities Commission’s (OSC) and The Washington State Department of Financial Institutions (DFI) have announced warnings about Swiss Valorem Bank.
What is Swiss Valorem Bank?
Swiss Valorem Bank, which began its operations in May 2023, is a financial venture that positions itself as a sophisticated investment platform. However, it is no stranger to controversy, as it is merely a rebranding of a failed cryptocurrency MLM platform, GSPartners, which itself was part of the larger Gold Standard (GS) network.
Josip Heit, the controversial figure behind GSPartners, is once again at the helm of Swiss Valorem Bank, which continues to offer what it claims are “elemental certificates” as investment vehicles.
However, despite its flashy marketing, a closer look reveals a network rooted in questionable business practices, especially considering its links to previous scams.
The real question is: Should you trust Swiss Valorem Bank, or is it just another scheme to extract money from unsuspecting investors?
A History of Controversy: From Karatbars to GSPartners
To fully understand the potential risks involved with Swiss Valorem Bank, it’s essential to look at the history of its founder, Josip Heit, and the companies he’s been associated with.
Heit’s involvement with Karatbars International, a company responsible for the launch of the KaratGold Coin (KBC) in 2019, is perhaps one of the most significant red flags. This was a failed cryptocurrency project that saw its value plummet by over 60% in just a few days, causing massive losses for investors. Heit, alongside Karatbars’ founder Harald Seiz, profited from the scheme but went under the radar for much of 2019 and 2020 as the initial investors began to withdraw their funds.
In 2020, the Gold Standard and its associated token, G999, were introduced in an attempt to reboot the project. Unfortunately, G999, much like its predecessor KBC, was doomed from the start. It quickly became clear that the project was designed to extract funds from new investors to pay earlier participants, a classic hallmark of a Ponzi scheme.
Heit’s fallout with Seiz in 2020 led him to found GSPartners, the precursor to Swiss Valorem Bank. However, GSPartners, like Karatbars, faced significant regulatory scrutiny and fraud warnings. By 2022, various global financial authorities, including the Central Bank of Comoros and the Alberta Securities Commission, issued alerts regarding the fraudulent nature of GSPartners. These issues led to another rebranding of the company into Swiss Valorem Bank in May 2023, likely to escape further regulatory heat.
Swiss Valorem Bank: The Ponzi Scheme Playbook
At its core, Swiss Valorem Bank operates like many other MLM schemes. The company offers no real products or services to retail customers. Instead, its affiliates are encouraged to invest in “elemental certificates,” which are essentially investment vehicles offering weekly returns.
These returns, which are supposedly generated through diverse sectors such as fintech, real estate, gaming, and renewables, are paid in GEUR, a token that has no value outside of the Swiss Valorem Bank system.
The core of the issue with Swiss Valorem Bank lies in its business model. Affiliates are encouraged to buy these certificates, which are tied to various tiers of investment (ranging from $100 to $1,000,000 in some cases). The so-called “returns” promised by Swiss Valorem Bank are unsustainable, often resembling the payout structure seen in Ponzi schemes. New investors’ money is used to pay earlier investors, with no legitimate business or product generating the promised returns.
Moreover, as with previous MLM scams Heit has been involved in, there are serious concerns about the liquidity and actual value of the tokens offered by Swiss Valorem Bank. The GEUR token, despite being promoted as being pegged to the euro, cannot be traded outside of the platform, making it virtually worthless outside the company’s internal ecosystem.
The Red Flags: What You Need to Watch Out For
- No Retail Products or Services: Swiss Valorem Bank does not sell any real products or services to the general public. This is a key indicator that it is a classic MLM or Ponzi scheme, where profits are generated solely through the recruitment of new investors.
- Unsustainable Returns: The company promises returns ranging from 2.5% to 5% weekly for up to 52 weeks, which is an unsustainable rate of return for any legitimate investment. In Ponzi schemes, such high returns are typically funded by the money of new investors, rather than through actual profits generated by the business.
- Opaque Investment Products: The elemental certificates offered by Swiss Valorem Bank lack transparency. These so-called “investment” products are not tied to any tangible assets, and there is no credible information available about where or how the investments are being managed.
- Rebranding to Escape Regulatory Scrutiny: The fact that Swiss Valorem Bank is a rebranded version of GSPartners, which had already faced multiple securities fraud warnings, is a huge red flag. It suggests that the company is trying to distance itself from its tarnished past and evade ongoing regulatory investigations.
- International Regulatory Warnings: Financial authorities in various countries, including Canada and the European Union, have issued warnings about the fraudulent nature of GSPartners and Swiss Valorem Bank. This includes warnings from the Alberta Securities Commission and Quebec’s Autorité des marchés financiers, which highlight the risks of investing with the company.
- MLM Compensation Structure: Swiss Valorem Bank’s compensation plan is heavily reliant on the recruitment of new affiliates. The MLM structure rewards affiliates based on how many new people they can recruit, with bonuses and commissions paid on the investments made by new recruits. This structure is a key indicator of a Ponzi scheme.
The Swiss Valorem Bank Investment Model
Swiss Valorem Bank’s investment strategy revolves around purchasing “elemental certificates.” These certificates are divided into thematic tiers, such as “Fintech,” “Real Estate,” and “Gaming,” with returns promised on investments made into these certificates. However, the reality is that these investments are not backed by any legitimate financial products, but instead rely on the constant influx of new investors to generate returns.
The six investment tiers offered by the company range from low-cost options at $100 USDT to high-end tiers costing up to $1,000,000 USDT. Each tier promises weekly returns, which range from 2.5% to 5%. These returns are paid in GEUR, a token that is only valuable within the Swiss Valorem Bank ecosystem, further locking investors into the system and preventing them from realizing any real profit.
Affiliate and Recruitment System
Swiss Valorem Bank’s affiliate program is structured in a multi-level marketing (MLM) format, which is common in many scams. The company operates on a unilevel compensation plan, where affiliates are rewarded for recruiting new members into the system. Commissions are paid out based on the investments made by recruits, with the potential for bonuses as affiliates rise through the ranks.
There are multiple affiliate ranks in Swiss Valorem Bank, including Affiliate, Director, Regional Director, National Director, Executive, and others. Affiliates earn a 15% commission on investments made by those they recruit, while higher-ranking affiliates receive additional bonuses and commissions from recruits at lower levels.
As affiliates progress through the ranks, they can earn more substantial commissions, with the highest-ranking affiliates potentially earning significant bonuses through the Accelerator and BlockStar pools.
However, the focus on recruitment rather than actual product or service sales is a hallmark of a Ponzi scheme. The lack of a real business model, coupled with the reliance on continuous recruitment to generate returns, makes it clear that Swiss Valorem Bank is more interested in building a pyramid structure than providing value to its investors.
Conclusion: Swiss Valorem Bank Is a Scam
Given the lack of transparency, the unsustainable return promises, and the reliance on recruitment rather than legitimate investments, it is clear that Swiss Valorem Bank bears all the hallmarks of a Ponzi scheme.
The rebranding of GSPartners, a company already under investigation for securities fraud, further indicates that Swiss Valorem Bank is simply an attempt to escape scrutiny and continue scamming investors.
If you are considering investing in Swiss Valorem Bank or any other MLM investment scheme, it’s crucial to do your due diligence and be aware of the risks involved. As with any financial decision, it is always wise to consult with an independent financial advisor before making any investments.
In conclusion, Swiss Valorem Bank is likely another scam designed to separate investors from their hard-earned money. Be cautious, stay informed, and protect your financial interests.
If you’re considering engaging with Swiss Valorem Bank or similar financial ventures, it’s essential to proceed with caution. Here are some tips for potential clients:
- Conduct Thorough Research: Investigate the company’s background, its founders, and any associated regulatory warnings or legal issues. Look for independent reviews and feedback from trusted sources.
- Verify Licensing and Regulation: Ensure the bank or investment firm is registered and regulated by recognized financial authorities. A legitimate financial institution will typically display its regulatory credentials on its website.
- Be Cautious of Unrealistic Promises: Be skeptical of high returns with little risk or pressure to recruit others into the program. Ponzi schemes often rely on the recruitment of new clients to sustain payouts.
- Avoid High-Pressure Sales Tactics: If you’re being urged to make an investment decision quickly or without enough time to thoroughly understand the offer, take a step back. Legitimate financial institutions offer transparent and well-explained products.
- Diversify Investments: Never put all your funds into a single investment opportunity, especially one that seems risky or poorly understood. Diversification helps mitigate potential losses.
- Consult a Financial Advisor: If in doubt, speak to a certified financial advisor to review the opportunity and help guide your decision-making process.
- Understand the Product: Before investing, make sure you fully understand the investment products being offered, including their risks, fees, and potential rewards.
By staying informed and cautious, you can protect yourself from falling victim to fraudulent schemes and make sound investment choices.
