A panel of the British Columbia Securities Commission (BCSC) has extended a temporary injunction for up to one year against three BC residents and several related international companies to stop the promotion of an investment product called “MetaCertificates.”
The extended temporary injunction against Vancouver resident Haidy Nitsa Nakos, Maple Ridge residents Tanya Sue Cloete and James Bruce Gardiner, GSB Gold Standard Bank Ltd. (doing business as GSPartners), GSB Gold Standard Corporation AG and Swiss Valorem Bank Ltd. prohibits them from engaging in promotional activities by or on behalf of GSPartners.
The provision also prohibits:
- Nakos, Cloete, Gardiner and GSPartners and their related entities from disseminating to the public, or authorizing the dissemination to the public, of any information or file relating to securities of GSPartners and
- Any persons from the trading of GSPartners securities.
GSB Gold Standard Bank Ltd. describes itself as a company licensed under the East African country of the Union of the Comoros. Swiss Valorem Bank Ltd. claims on its website that it has a private banking license in Kazakhstan. GSB Gold Standard Corporation AG is incorporated in Germany.
The hearing panel was presented with evidence that MetaCertificates and other investment products are promoted through a multi-level marketing network that provides commissions to promoters for referring others to purchase the product. Nakos, Cloete and Gardiner are supporters of MetaCertificates, with Cloete and Gardiner having hosted a GSPartners event at a downtown Vancouver hotel in April 2023.
A significant number of BC investors have purchased MetaCertificates and investors expect to benefit from weekly returns of 2.5% to 4% on MetaCertificates and quarterly returns of up to 18% from investment products added to them.
The BCSC investigation is ongoing and its executive director is not yet ready to issue a notice of hearing – statement of allegations of misconduct. The Executive Director requested the extension to “clearly signal to investors to stop investing in GSPartners MetaCertificates.”
The BCSC Executive Director issued a temporary injunction against the individuals and entities on November 16, which was set to expire on December 1. The commission granted the extension – for the earliest of a year or until a hearing is held and a decision is made – and will provide reasons at a later date.