GSPartners has received a securities fraud cease and desist order from Wisconsin’s Department of Financial Institutions (DFI).
As per a November 16th notice filed by DFI’s Securities Division, GSPartners
has been engaging in an international scheme to illegally sell fraudulent investments.
Its scheme is being driven by an international confederation of multilevel marketers that have collectively earned around
$11 million in commissions.
DFI states their cease and desist order has been filed to “stop (GSPartners) from inflicting immediate and irreparable public harm.”
GSPartners is an MLM cryptocurrency investment scheme, operated from Dubai by owner Josip Heit (right).
As detailed in their order, DFI summarizes GSPartners as
a multilevel marketing program that promises the payment of lavish commissions for recruiting new investors and selling investments.
An accompanying
DFI press-release
describes GSPartners as an “alleged global fraud scheme”.
The Wisconsin Department of Financial Institutions (DFI) today announced an enforcement action to stop an ongoing international fraud scheme.
The action accuses GSB Gold Standard Bank LTD, doing business as GSPartners, of offering and selling fraudulent certificates tied to digital assets and foreign currency exchanges, as well as investments in staking pools in a proprietary metaverse.
Although he’s not named as a respondent,
DFI’s November 16th order
singles out Paul J. DeRenzo, a resident of Pennsylvania, as a GSPartners promoter.
Earlier this year DeRenzo (right) was named as a promoter of NovaTech FX. A
DFI fraud order
filed on April 4th fined the Ponzi scheme $50,000.
DeRenzo promoted NovaTech FX on Craigslist. DFI’s GSPartners order cites one Wisconsin resident who responded to one of DeRenzo’s NovaTech FX ads.
On or about November 11, 2022, DeRenzo posted an advertisement on Craigslist.
The heading stated: “We Trade For You-Get Paid Every Week.”
On or about February 2, 2023, Wisconsin resident ME responded to DeRenzo’s Craigslist advertisement by email and began corresponding to get more information about the investment opportunity.
The investment opportunity DeRenzo advertised on Craigslist was for NovaTech FX.
On or about February 2, 2023, during a phone call between Wisconsin resident ME and DeRenzo, DeRenzo claimed he had a better investment opportunity for ME which would be safer called GS Partners.
Upon information and belief, there are at least 44 additional Wisconsin investors who purchased metacertificates and other investment opportunities from GSPartners.
Under Wisconsin law, which with respect to securities is materially no different to federal US law,
The metacertificates issued by GSPartners are investment contract securities pursuant to Wis. Stat. § 551.102(28)(d)(1), because investors funds are to be invested in a common enterprise and managed and traded by GSPartners and its affiliates to generate profits from trades executed on its blockchain and throu
🤖 Quick Answer
What is the GSPartners cease and desist order from Wisconsin?On November 16th, Wisconsin's Department of Financial Institutions issued a cease and desist order against GSPartners, an MLM cryptocurrency investment scheme operated from Dubai by Josip Heit, for engaging in international securities fraud involving illegal investment sales through multilevel marketers earning approximately $11 million in commissions.
Why did Wisconsin's DFI take action against GSPartners?
The Department of Financial Institutions filed the cease and desist order to prevent GSPartners from causing immediate and irreparable public harm through its fraudulent multilevel marketing program that illegally sells fake cryptocurrency investments to international victims.
Who operates GSPartners and from where?
GSPartners is operated from Dubai by owner Josip Heit. The scheme involves an international confederation of multilevel marketers who distribute fraudulent investment products and earn commissions from the
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