Kentucky’s Department of Financial Institutions has filed a lawsuit against GSPartners and owner Josip Heit.

The lawsuit is the first step to obtaining a cease and desist order related to securities fraud.

Kentucky’s Department of Financial Institutions (DFI), filed its complaint following an internal investigation into GSPartners and Heit (right).

The investigation began on September 28th, 2023, and revealed alleged violations of the Securities Act of Kentucky.

Named respondents in
DFI’s Complaint
include:

GS Partners Global (aka GSPartners, Swiss Valorem Bank Ltd, GSB Gold Standard Bank Ltd, Gold Standard Partners, GSB, GSB Gold Standard Corporation AG, GSB Gold Standard Pay Ltd, GSDefi, Gold Standard Trade, GSTrade, G999 and Lydian World)

Josip Heit, owner of GS Partners Global

“Notable individuals affiliated with GS Partners” are

Bruce Hughes, GSPartners’ Corporate Trainer

Aline Lima, GSPartners’ Partner Relationship Manager

Dirc Zahlmann, GSPartners’ recently appointed CEO and former Head of M&A

Dennis Uitz, GSPartners’ Trading Academy CEO

Due to the extensive use of shell companies used, DFI states “it is not yet known to the Department where central business operations occur”. Cited “possible locations” are Kazakhstan, UAE, England and Germany.

As disclosed in their Complaint, DFI’s investigation into GSPartners revealed;

Heit is a control person for GS Partners. Additionally, he advertises GS Partners’ securities products.

GS Partners is promoting investments through its affiliated apps on Apple’s App Store and Google’s Play Store (GSNotes, Signature Wallet, and GSTelecom), along with internet websites accessible by the public at gspartners.global, gsb.gold, and g999main.net.

GS Partners uses lydian.world to advertise staking pools, digital assets, NFTs, and a product Respondents refer to as MetaCertificates.

The digital asset investments are particularly advertised as having attractive returns in digital asset markets in a safe and fully regulated way without any verifiable evidence of U.S. securities regulation.

BehindMLM concluded the same in our May 2023 published
Swiss Valorem Bank review
.

DFI’s Complaint continues;

GS Partners is offering securities in the form of MetaCertificates that qualify as securities pursuant to KRS 292.310(19) and Securities and Exchange Commission v. W. J. Howey Co., 328 U.S. 293 (1946).

Respondents’ descriptions of the MetaCertificates most closely resemble either certificates of deposit or investment contracts.

Respondents’ other referenced offerings, including its staking program, also constitute a security.

Neither of the Respondents have ever been registered as an issuer agent in Kentucky.

Respondents have not registered or filed a claim of exemption from registration for its business activity.

Following its findings of alleged securities fraud violations, DFI concluded;

GS Partners has acted as an unregistered issuer of unregistered securities through its publicly availab

🤖 Quick Answer

What is the nature of the lawsuit filed by Kentucky's Department of Financial Institutions?
Kentucky's Department of Financial Institutions has filed a lawsuit against GSPartners and its owner Josip Heit for alleged securities fraud. The action represents the initial procedural step toward obtaining a cease and desist order, following an internal investigation that revealed violations of Kentucky's Securities Act.

Who are the respondents named in the DFI's complaint?
The named respondents include GS Partners Global and its various aliases, such as Swiss Valorem Bank Ltd, GSB Gold Standard Bank Ltd, Gold Standard Partners, GSDefi, Gold Standard Trade, and Lydian World. Additionally, Josip Heit, the owner of GS Partners Global, has been named as a respondent in the complaint.

When did the investigation into GSPartners commence?
The Department of Financial Institutions initiated its internal investigation into GSPart

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