As of March 13th, 1,501 victim claims have been submitted through GSPartners.
Secretary of State Brad Raffensperger reports that 121 of the claims are from investors in Georgia.
“Georgia’s winning right now,” said an AlixPartners administrator discussing the GSPartners victim claims procedure.
Leading GSPartners promoter Michael Lynn “El” Dalcoe was recruited in Georgia.
In January 2024, Dalcoe, GSPartners, owner Josip Heit (right), and fellow promoter Eric Ture Muhammad were all fined a total of $500,000 by Georgia’s Commissioner of Securities.
The monetary value of victim claims submitted to GSPartners has not been made public. North American regulators say GSPartners earned more than $1 billion globally, citing its marketing materials.
GSPartners offered bitcoin investments up to $700,000 through a number of “fraudulent investment schemes” (click to enlarge):
The deadline for GSPartners victims to submit claims to North American governments taking part in the settlement is May 22nd. Texas was one of such jurisdictions until recently.
Securities Commissioner Travis Iles said earlier this week that “the settlement is terminated,” citing general claims of fraud and breaches of the settlement agreements.
April 14th has been set aside for a hearing on Texas’ previously filed GSPartners fraud enforcement case, which names owner Josip Heit and a number of partners.
The parent business of GSPartners, GSB, was accused by the Texas State Security Board of falsifying investor transaction data.
TSSB Enforcement Director Joe Rotunda said data from GSB revealed the account had “withdrew assets valued at $690.69,” citing an undercover GSPartners account that had no withdrawals.
The undercover account was deemed unable to take part in the victim claims procedure by GSB.
It’s quite probable that other participating jurisdictions have also received manipulated investor data if Texas has.
However, as of right now, no other participating jurisdiction has made any public remarks on GSB’s purported breaches of the settlement terms.
The future of the GSB settlement is still up in the air, pending the conclusion of the hearing in Texas on April 14.
