Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

DFPI settles with crypto platform over securities violations, provides refunds to victims

Email A Friend Printer Friendly Version
2 comments
Consumer Protection, Nonbank Financial
Friday, February 28, 2025

The California Department of Financial Protection and Innovation (DFPI) reached a settlement with the perpetrators of an illegal cryptocurrency investment platform and is urging residents to apply for refunds.

Collectively known as GSPartners, the entities involved in the scheme and the platform’s owner and chairman, Josip Heit, must return all funds, less the value of any withdrawals, deposited by California clients.

“This is an enormous victory for Californians,” DFPI Commissioner KC Mohseni said in a statement. “This settlement ensures that Californians who deposited funds into GSPartners will be made whole, and it holds GSPartners and Heit accountable for violating California law.”

The platform violated multiple state securities laws in California, as well as other states which were involved in an investigation into the matter. The DFPI issued a cease and desist order against GSPartners on Nov. 16, 2023, for offering and selling unqualified securities via its multi-level marketing (MLM) platform.

“Investors were told that this broker was one of the largest in the world, was licensed, regulated, and had a trustworthy reputation, and that purchasing GSPartners’ certificates would give investors exclusive access to this broker’s experience and knowledge,” the DFPI stated in the order. “However, GSPartners’ representations were false. In reality, no such partnership existed, and the purported returns were not being generated by the broker managing and trading GSPartners’ investors’ funds.”

GSPartners consisted of GSB Gold Standard Bank Ltd., Swiss Valorem Bank LTD and GSB Gold Standard Corp. AG, as well as Heit, corporate trainer Bruce Innes Wylde Hughes and the operation’s head of mergers and acquisitions, Dirc Zahlmann.

The company promised investors fixed returns between 2.5 percent and 5 percent every week through its “MetaCertificates” program and claimed to be partnered with a specific forex broker, according to DFPI.

The agency also accused Heit, Hughes, and Zahlmann of making “untrue statements of material fact and material omissions to investors and potential investors,” including:

  • falsely representing GSPartners was partnered with a particular forex broker to provide services to investors.
  • falsely representing GSPartners was a licensed bank when the “license” was granted by a fictitious regulator.
  • using the terms “bank” and “banking” when GSPartners was not licensed to engage in banking in California and that investor funds were not FDIC-insured.
  • misrepresenting expected profits and risk of loss.
  • failing to disclose that the sale of GSPartners’ securities was not qualified in California.

Californians who deposited funds with GSPartners and its affiliated entities will have until May 22 to submit a claim for a full refund, less the value of any withdrawals. The claims process will be administered by AlixPartners LP and can be submitted via gsbsettlement.com.

Today's other top stories
Senate parliamentarian rules on budget bill’s CFPB, AI provisions
CFPB’s enforcement practices, CIDs scrutinized during hearing
HUD announces plans to relocate to NSF headquarters
MBA says uptick in mortgage application payments means decline in affordability
FHA publishes RFI on Buy Now, Pay Later loans


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 8131 times.

Monthly Newsletter

Dodd Frank Update July 2025

Cover Story:

Former CFPB attorneys say state CFPA rights are for the courts to decide


News by Topic   News by Edition   News by Agency   News by Industry   In-depth Reports   Events
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update May 2025
Dodd Frank Update June 2025
Dodd Frank Update July 2025
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
2025 State of the Industry
CRA and Affordable Housing
2025 State of the Industry
Who's My Regulator?
Fair Lending
Mortgage Technology
Marketing Compliance for Lenders
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
Data Privacy Vault Court Actions
Keys to Real Estate podcast Enforcement Documents
Blog - Tuesdays with Mary Guidance Documents
1071 Compliance Guide White Papers
eClosing Solutions Showcase Position Papers
Executive Interview Series Legislation
Lender Associations Regulations
The Dodd-Frank Act Reports, Studies and Surveys
Dodd-Frank Summary & History Federal Register Notices
 
Dodd Frank Update
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2025 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
IN-DEPTH REPORTS
INDUSTRY
EVENTS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
Current Edition
June 2025
May 2025
April 2025
Archives
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
2025 State of the Industry
Real Estate Compliance Outlook
CRA and Affordable Housing report
Who's My Regulator?
Fair Lending
Marketing Compliance for Lenders
Archives
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
2025 Economic Outlook Series
CFPB's Shake-Up & Its Impact on You
Data Privacy Compliance
Fintech Partner Compliance
Strategies post-NAR settlement
Industry and Regulatory Outlook
Securing Your Cyber Network
Compliant Marketing Tactics
2024 Economic Forecast Series
Webinar Archives
Data Privacy Vault
Keys to Real Estate podcast
Blog - Tuesdays with Mary
1071 Compliance Guide
eClosing Solutions Showcase
Executive Interview Series
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement