The Arizona Corporation Commission is warning the public of an alleged crypto scheme that is exploiting investors and encouraging the public to contact its Securities Division with information about two companies, GSPartners or Swiss Valorem Bank.

The Commission issued a temporary cease and desist order in November 2023 against Swiss Valorem Bank Ltd., GSB Gold Standard Corporation AG, and GSB Gold Standard Pay, Ltd., and acting under the brand, “GSDEFI,” Josip Heit; and Tannisha Glaspie were given notice of their violations of Arizona securities laws in an effort to prevent immediate and irreparable public harm. However, the Commission is alleging that due to the nature of the respondents’ investment scheme, GS Partners’ business model is constantly evolving and being repackaged into a new offering.

Upon information and belief, the Commission asserts that the respondents may be offering the same unregistered and fraudulent investments opportunities through a new entity called “GSPRO” and/or “GS Digital Partners, LLC.” If so, the respondents’ actions would be a violation of the Commission’s order. A copy of the Commissioner’s Order is available here.

GSPartners is soliciting investors through a multilevel marketing platform and is representing that they can offer lucrative investment returns. While the respondents have claimed Swiss Valorem Bank was a type of “fully regulated” bank, there is no indication that supports the respondents’ claims of actually being regulated by any banking authority.

The Commission’s order alleges that GSPartners was offering and selling unregistered securities as investment opportunities from or within Arizona. GSPartners and its affiliated companies were also making fraudulent representations and/or material omissions to investors related to a purported crypto asset. The securities offerings included investment opportunities with GSPartners’ investment programs, which they called “MetaCertificates,” as well as opportunities with their self-created cryptocurrency and blockchain called “G999” or “G999 Coins.”

Additionally, GSPartners failed to inform its investors that its founder and Chairman, Josip Heit, was previously involved with a company that was deemed a “pyramid scheme” by the Bank of Namibia and that a German regulator issued a cease and desist order against Heit’s company to terminate his offering of a cryptocurrency called “Karat Gold Coin.”

The Arizona Corporation Commission, along with regulators in several other states including Alabama, Arkansas, California, Florida, Kentucky, Mississippi, New Hampshire, Texas, Washington and Wisconsin, have issued orders against GSPartners. Several jurisdictions in Canada have also issued warnings and alerts against GSPartners beginning April 2023.

The Commission’s allegations against GSPartners, Swiss Valorem Bank, and the other respondents have not been proven in a court of law. Nevertheless, investors should be aware that many investments that appear to be a business opportunity may require state or federal securities registration and certain disclosures to investors. Additionally, investment promoters may be required to obtain the necessary training and registrations/licenses. 

The Commission is seeking information from the public to determine whether or not GSPartners is operating in violation of the Commission’s order. Investors who have given money to the GSPartners entities, including GSPRO, should contact the Commission’s Investigator on Duty by telephone at 602-542-0662 or by email, SecuritiesDiv@azcc.gov