Florida Orders Cease and Desist for Unregistered Securities
Summary
The Florida Office of Financial Regulation (OFR) issued an immediate final order against GSB LTD, d/b/a GS Partners, and other members of GSB Group. The order requires them to cease and desist from alleged unregistered and fraudulent securities and banking services, citing a multilevel marketing scheme and misleading profit generation information.
What changed
The Florida Office of Financial Regulation (OFR) has issued an immediate final order against GSB LTD, d/b/a GS Partners, and related entities, compelling them to cease and desist from engaging in unregistered and fraudulent securities and banking activities within Florida. This enforcement action, stemming from a joint effort with securities regulators in the US and Canada, alleges that GS Partners operated a multilevel marketing scheme, offered deceptive profit information, and paid excessive commissions, posing an immediate danger to public depositors and investors.
This order mandates that GSB LTD and GS Partners immediately halt all unregistered securities and banking operations in Florida. The action highlights the OFR's commitment to protecting consumers from fraudulent financial misconduct. Floridians who suspect scams or questionable practices are encouraged to file complaints with the OFR. Failure to comply with the cease and desist order will likely result in further enforcement actions and penalties.
What to do next
- Cease and desist all unregistered securities and banking services in Florida.
- Review marketing materials and profit representations for compliance with Florida securities laws.
- File a complaint with the OFR if experiencing or suspecting financial scams.
Penalties
The order requires the entities to cease and desist from alleged unregistered and fraudulent securities and banking services. Further penalties are implied for non-compliance but not explicitly detailed in this press release.
Source document (simplified)
OFR Issues Immediate Final Order to GSB LTD, d/b/a GS Partners
11/27/2023
Tallahassee, Fla. - The Office of Financial Regulation (OFR) today announced that an immediate final order was issued to Gold Standard Bank (GSB) LTD, d/b/a GS Partners, and other members of GSB Group, requiring them to cease and desist from alleged unregistered and fraudulent securities and banking services in the state of Florida. This action is the result of a working group of securities regulators from the United States and Canada, who entered emergency enforcement orders to protect the public from alleged fraudulent misconduct.
The OFR order alleges that GS Partners promoted investments through a multilevel marketing scheme, paying lavish commissions and using deliberately obscure and misleading information about how the organization generated profits. The order states that their conduct poses an ongoing immediate danger to the public health, safety, or welfare particularly to those depositors or investors who rely upon their alleged misrepresentations.
Read the OFR’s immediate final order.
Floridians who suspect a financial scam or questionable business practices are encouraged to submit a complaint online at www.flofr.gov, or by calling (850) 487-9687.
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