Josip Heit Sentenced for Financial Fraud in Luxembourg
A recent scandal has emerged in Croatia involving a stalled hydroelectric plant, which has been linked to businessman Josip Heit and his brother-in-law, Sasa Svalina. Heit is currently facing significant legal challenges, including a refund crisis following allegations of securities fraud tied to a billion-dollar investment scam.
A report by Croatian journalist Dusan Miljus, published on September 22, delves into Heit’s background, focusing on his activities before he became associated with Karatbars International. According to Miljus, Heit had a previous run-in with the law in Luxembourg, where he was sentenced to prison for financial fraud.
Using “reliable sources,” Jutarnji reported that Heit was released from a Luxembourg prison in 2012, having served time for financial crimes. Upon his release, he adopted a new identity in Croatia. Despite the legal setbacks, Heit continued to borrow money, some of which remains unpaid, all while maintaining the image of a successful entrepreneur.
Heit’s lifestyle at the time helped him gain attention. He drove a luxurious Bugatti and presented himself as a prominent figure in the business world, thanks in part to financial backing from the family of his ex-wife, Kristina Heit, a German of Russian descent. Notably, her uncle Andrej Labudzko and his brother Viktor are believed to be arms dealers linked to the Russian military. Viktor is reported to be a key figure trusted by Russian President Vladimir Putin. Ten years ago, Heit even introduced these influential Russian figures to the town of Una.
While Heit’s specific fraudulent activities that led to his imprisonment in Luxembourg remain somewhat unclear, it is known that his entrepreneurial journey began in 1998, when he left his studies to launch a tourism and luxury services company in Croatia, focusing on leasing and chartering boats. This was the first of many ventures that marked his career.
After his release from prison, Heit received financial backing from Viktor, the Russian arms dealer, which may have helped him establish himself in business. Interestingly, Heit later used donations to Ukraine as a promotional tool for his company GSPartners, despite his alleged ties to Russian arms dealers. The contradiction raises questions about how his actions may have been perceived by his Russian connections, but no direct fallout has been reported.
Born Josip Curcic, Heit officially changed his name after his time in prison. In 2009, he married Kristina Heit, taking her last name. Kristina, born in Russia and holding German citizenship, currently resides in Germany. Heit’s parents, Ivan and Ruza, are Bosnian citizens, and his father, Ivan, no longer holds Croatian citizenship.
Jutarnji made multiple attempts to reach Heit for comment regarding the various allegations, but these efforts were largely unsuccessful. Eventually, a woman answered one of their inquiries and promised to relay their request for a conversation to Heit, although no further response has been reported.
Sasa Svalina, who is married to Heit’s sister, was located in Croatia and questioned about his involvement with Heit. Despite the connection between the halted hydroelectric project and one of Heit’s companies, Svalina insisted that his brother-in-law had nothing to do with the plant’s construction. He added that he has had no business dealings with Heit and has not heard from him in months.
Karatbars International, the company with which Heit became widely known, was founded in 2011 by Harald Seiz. Heit, along with Alex Bodi (later convicted of organized crime) and Ovidiu Toma, was listed as a co-founder. Svalina was also associated with the company and appeared in at least one promotional video alongside Heit.
However, Karatbars International suffered a major blow when its attempt to pivot into cryptocurrency through a multi-level marketing (MLM) structure failed. By mid-2019, the company had collapsed. The downfall of Karatbars led to a split between Heit and his long-time business partner, Harald Seiz.
After the collapse of Karatbars, Heit shifted his focus to GSB Group, establishing several shell companies in Kazakhstan in 2020, allegedly with the intention of engaging in cryptocurrency trading. GSB, now branded as “GSB Group,” is the parent entity behind GSPartners and several other affiliated companies.
GSPartners claims to have raised approximately one billion dollars in investments from over 800,000 investors worldwide. Despite this, the company faced a series of regulatory warnings from global financial authorities, which culminated in its collapse in December 2023. A significant number of GSPartners’ investors are believed to be from North America, where the company had the strongest following.
Recently, GSPartners and Heit agreed to a settlement with US regulators, acknowledging that they had illegally offered and sold securities. The settlement could potentially pave the way for investors in the US and Canada to recover their funds. However, for investors outside North America, the fate of their investments remains uncertain as legal actions continue to unfold. There may be further developments in other countries, where civil or criminal fraud charges could still be filed against Heit and GSB Group.
This case continues to unfold, with investors and regulatory bodies awaiting further updates on the status of the company and its leadership.