Josip Heit GSPartners Sentenced to Prison for Financial Fraud in Luxembourg

A controversy has erupted over a halted hydroelectric project in Croatia, drawing attention to Sasa Svalina and his brother-in-law, Josip Heit. Heit, who is embroiled in a settlement dispute linked to allegations of securities fraud in a billion-dollar investment scheme, has a complex history of legal troubles and business ventures.

In a detailed report from Jutarnji journalist Dusan Miljus, it was revealed that Heit, before his involvement in Karatbars International, served a prison sentence in Luxembourg for financial fraud. Following his release in 2012, Heit allegedly reinvented himself in Croatia by taking on a new identity. Despite borrowing significant sums, some of which remain unpaid, Heit continued to project the image of a successful entrepreneur, notably driving a luxury Bugatti. His ex-wife’s family, including her uncle Andrej Labudzko—a man connected to the Russian military and trusted by Vladimir Putin—allegedly helped fund Heit’s ventures. Ten years ago, Heit even introduced them to the Una region in Croatia.

Before his legal troubles, Heit’s early career saw him leave school in 1998 to start a business in Croatia focused on luxury tourism and chartering boats. A curious twist to Heit’s financial connections is his apparent use of donations to Ukraine as a marketing strategy for GSPartners, despite his links to Russian financial support. How this played with his Russian-associated relatives is unknown.

Heit, originally born as Josip Curcic in Split, Croatia, changed his surname to Heit after marrying Kristina Heit in 2009. Kristina is a German citizen born in Russia. Following his name change, Heit continued his entrepreneurial activities but remained elusive to the media. Despite repeated attempts by Jutarnji to contact him, only a brief response was given by someone on his behalf, indicating they would pass along the message.

Sasa Svalina, Heit’s brother-in-law, was tracked down in Croatia and confirmed his family relationship with Heit but distanced himself from the halted hydroelectric plant controversy. He denied any business ties with Heit, despite investment connections through one of Heit’s companies. Svalina emphasized that he and Heit were not involved in any joint business ventures and had not been in contact for several months.

Heit’s business trajectory took a pivotal turn with his involvement in Karatbars International, a company founded in 2011 by Harald Seiz. Heit, alongside co-founders Alex Bodi (later imprisoned for organized crime) and Ovidiu Toma, was instrumental in building the company. Karatbars initially focused on selling gold-related products before attempting to transition into cryptocurrency—a move that ultimately led to its downfall in 2019. After the collapse, Heit parted ways with Seiz and shifted his focus to founding GSB Group, setting up shell companies in Kazakhstan in 2020 for cryptocurrency trading. There is little information about these companies beyond self-congratulatory claims of success.

GSB Group later launched GSPartners, which allegedly raised over a billion dollars from 800,000 investors worldwide. However, GSPartners quickly became the subject of regulatory scrutiny and fraud warnings from authorities in various countries. By December 2023, GSPartners had collapsed, with the majority of its investors hailing from North America. In early 2024, Heit and GSB Group reached a settlement with US regulators, agreeing to an enforcement order acknowledging that they had illegally sold securities. While North American investors hope to recover their money, participants from other countries remain in limbo, with their funds still unaccounted for.

As regulatory investigations continue and the possibility of further civil or criminal fraud charges looms, Heit’s global business ventures, including GSPartners, face an uncertain future.

Josip Heit GSPartners Sentenced to Prison for Financial Fraud in Luxembourg