We have previously alerted our readers to the dangers of investing in Ponzi and pyramid schemes, which can result in enormous financial losses. The operators in these schemes frequently flee with most funds, leaving the participants with nothing.
Additionally, we have informed our readers about the frequent involvement of ponzi scheme operators in securities fraud. As a result, a few days ago, the company and many other GSPartners partners were charged with securities fraud in Georgia.
We will examine and briefly discuss the GSPartners securities fine imposed by the Georgia Commissioner of Securities in this post.
What is GSPartners?
GSPartners, often known as GSPro, operates as an online broker providing clients with financial services and a rewards program. Additionally, it once had an affiliate program that allowed all affiliates to access Blockchain Academy.
Blockchain Academy was an educational technology platform that used video content on the internet to teach students about blockchain, digital assets, and cryptocurrency.
Josip Heit is the founder of GSPartners.
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History of GSPartners
The GSPartners underwent a rebranding in the middle of 2023 and encountered several difficulties. We also assessed it once it was rebranded as Swiss Valorem Bank. Swiss Valorem Bank served as a shell company for GSPartners.
We also cautioned our viewers about the potential financial losses associated with investing in Swiss Valorem Bank because of its business plan. Several notifications of securities fraud have been sent to GSPartners by several international authorities.
GSPartners changed its name to GSPro while keeping the same services and brand to avoid securities fraud warnings that had occurred in prior years. By then, it was clear that GSPartners had fallen apart, as was almost inevitable.
It closed all US-based GSPartners investor accounts after resetting itself as GSPro. They declared that they would not be providing any services to, transacting business with, or taking money from citizens of those states in the United States.
GSPartners Securities Fraud
Josep Heit, the owner, and Michael Lynn, the promoter, were fined $500,000 by the Georgia Commissioner of Securities on January 22, 2024. The Georgia Commissioner of Securities issued the fine as part of an emergency cease and desist order.
According to the Georgia Commissioner of Securities, during his investigations, several other people, including the owners and promoters, committed securities fraud in Georgia. Six Respondents are listed in the order:
- GSPartners Global
- Josep Heit
- Wealthbuilders Worldwide
- Michael Lynn, “El” Dalcoe
- Eric Tere Muhammad
- Swiss Valorem Bank
Michael Lynn and Eric Tere Muhammad reside in Georgia. Eric was employed by Wealthbuilders Worldwide, a network of investors affiliated with GSPartners. Michael Lynn served as the company’s top envoy.
According to the Georgia Commissioner of Securities, the respondents are not and have never been registered with the state of Georgia as agents or broker-dealers. Additionally, the commissioner disclosed that MetaCertificates were being sold.
The sales of MetaCertificates fall under the category of unregistered securities sales in Georgia because the respondents never registered as brokers, dealers, or agents. Therefore, there should be an emergency halt with a $500,000 fine.
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