GSPartners, a company accused of operating a fraudulent investment scheme, claims a 66% drop in new victims signing up to lose money. The company and its owner, Josep Heit, filed a lawsuit in South Africa's High Court on May 18th, targeting a YouTube channel they allege is responsible for this downturn.

The suit names Louis Nel, Francois Harris, and Gert Christoffel Grobler, also known as Gareth Grobler, as defendants. These individuals are featured in videos on the "G-Crypt" YouTube channel, which GSPartners alleges contains defamatory commentary. Specifically, the plaintiffs object to the content of seven G-Crypt videos published between February and March 2021. These videos question the legitimacy of G999 and "Gold Standard Business," terms associated with GSPartners.

GSPartners contends that the G-Crypt videos falsely portray them as dishonest, their business as a scam, and its principals as criminals and individuals of low moral character. The lawsuit cites specific allegations from the videos, including claims that GSPartners is a Ponzi and/or pyramid scheme, operates unlawfully, and preys on vulnerable people. The plaintiffs are seeking damages totaling over $17 million.

The lawsuit also includes several South African GSPartners promoters as plaintiffs: Tony De Gouveia, Bruce Hughes, Andrew Eaton, and Brendon Earp-Jones. These individuals, all reportedly former promoters of other dubious investment schemes like Karatbars International and Lifestyle Galaxy, are seeking substantial damages. De Gouveia, for instance, claims lost earnings of over $41,000 per month since February 2021, down from $81,000. Hughes, Eaton, and Earp-Jones also report significant income reductions.

GSPartners claims that prior to the G-Crypt videos, an average of 35,000 new members joined monthly since December 2020. They assert that each new victim recruited generates approximately $250, and the reduction in new members since February 2021 has resulted in an estimated monthly loss of $5.77 million for the company. The total claimed damages by GSPartners and its promoters exceed R25 million (approximately $1.74 million) and $17.32 million.

The South African High Court case number is HC 2021/016474.