GSPartners & Michael Dalcoe fraud C&D from Alabama

GSPartners, owner Josip Heit, executive Bruce Hughes and several promoters have received a securities fraud cease and desist order from Alabama.

Named respondents in the
Alabama Securities Commission’s November 16th order
include:

GSPartners

Josip Heit – right, owner and Chairman of GSPartners

Wealthbuilders Worldwide – US downline of GSPartners investors headed up by Nathaniel Hines

Nathaniel Hines (aka Nate Hines) – top GSPartners promoter, also cited as an Alabama resident and former Federal Bureau of Prisons employee

Jeanette Morgan Hines – wife of Nathaniel Hines

Del Frank Lewis – Alabama resident, GSPartners promoter and Wealthbuilders Worldwide member

Diana L. Lewis – wife of Del Frank Lewis

Referenced entities and individuals include:

Bruce Innes Wylde Hughes – South African national and GSPartners’ Corporate Trainer

Michael Lynn “El” Dalcoe – top GSPartners promoter, also cited as a Georgia resident and member of GSPartners’ “executive council”

Dirc Zahlmann – recently appointed GSPartners CEO, also cited as “Head of M&A and Marketing Advisor”

Swiss Valorem Bank – issuer of GSPartners’ “metacertificates”

Following an internal investigation, the ASC concluded

respondents are conducting ongoing, unregistered investment advisory activity and the offer and sale of unregistered securities in Alabama.

This is based on
GSPartners’ “metacertificates” scheme
, which pitches weekly passive returns of up to 5%.

Heit and GSPartners have implemented a business plan in which securities called MetaCertificates are sold to investors with the promise of guaranteed, lucrative returns.

MetaCertificates are not registered in Alabama.

ASC goes on to cite one WealthBuilders’ marketing event, held in Alabama on October 7th, 2023.

On October 7, 2023, N. Hines, J. Hines, Lewis and D. Lewis representing Respondents GS Partners and WealthBuilders, held an investment seminar at a national chain hotel in Montgomery, Alabama.

A Commission employee attended the seminar.

This event was advertised on Facebook by N. Hines. In the advertising flyer, N. Hines, J. Hines, Lewis and D. Lewis were pictures, and N. Hines was identified as the speaker.

When asked by a Commission employee who attended the seminar how GS Partners made money to pay the Customers and Members the high returns on investment, N. Hines explained that GS Partners takes the Customers’ and Members’ funds and invests them in companies to earn returns.

GS Partners pays the Customers and Members from the returns generated by GS Partners’ investments.

In addition to personally attending WealthBuilders’ GSPartners events, ASC employees also reference accessed online marketing materials.

One amusing part of ASC’s order is the dismantling of Hines’ “this is not financial advice” pseudo-compliance.

N. Hines then showed a disclaimer that read:

This presentation is for the exclusive purpose of educating the community, members users of products, services and potential rewards programs,

🤖 Quick Answer

What enforcement action did the Alabama Securities Commission take against GSPartners?

Who were the primary respondents named in Alabama's enforcement order?
Named respondents included GSPartners corporation, owner Josip Heit, Wealthbuilders Worldwide organization, promoter Nathaniel Hines, Jeanette Morgan Hines, Del Frank Lewis, and Diana L. Lewis among other referenced entities.

What was Nathaniel Hines' role in the GSPartners structure?
Nathaniel Hines served as a top GSPartners promoter heading the Wealthbuilders Worldwide downline operation in the United States, and was identified as an Alabama resident and former Federal Bureau of

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