Just when you thought the scandal surrounding Karatbars International GmbH, the Gold Standard Banking Corporation AG (GSB), (formerly GCC Gazella Corporate AG), as well as the phoney KaratCoin bank, couldn’t get any more audacious, it does. Remember the photo shoot in front of the non-existent bank in Miami? The one at the Regus office leasing building? Or, the Video Turning Day in Hong Kong at a phoney, rented Security Vault at the locker company, Royal England Safe Deposit Box Ltd? If a phoney locker company wasn’t enough, these fraudsters thought of everything, down to the 280 kg of fake gold bars stacked in a carry-on suitcase-sized to fit just right into the overhead compartment, and, of course, the repeated contradictory information about “gold stock” that was anything but gold, this plot thickens. Let’s not forget that the purported licenses for the gold mines in Madagascar and Guinea or some such place are also forgeries. In fact, there isn’t a single gram of gold in any of the asserted mines nor any reality to the KaratCoin Bank nor the Gold Standard Banking Corporation, owning any mine, not even a play toy for a five-year-old.
With their continued bold-faced lies Harald Seiz, Josip Heit, Alex Bodi are living a life of luxury at the expense of thousands of victims who daily pledge their hard-earned savings to for the promise of riches at the end of the rainbow. Each day this unfortunate story unfolds another brazen scam which is nothing more than a classic Ponzi scheme. Ponzi schemes also referred to as a pyramid scheme, are named after the Italian US immigrant Charles Ponzi, who used the fraudulent tactic in the 1920s. Mr Ponzi founded a finance company with the slogan: “Lend me your money, and you’ll earn 50% in interest.” Tens of thousands of people entrusted him with $65 billion when all was said and done. His practice: he used new funds invested to pay off the previous earlier investors that continued on and on until such a time that there were not enough new investors to pay off the old ones, and his entire model collapsed leaving many thousands broke. Harald Seiz, Josip Heit, Alex Bodi and Co. are involved in a modern day process of the like. Regular commissions are paid for a product that does not exist, essentially a promise of a future reward. To start, Karatbars flagship product, the “VIP package” costs a total of 3,017 €. In exchange for their 3,017 €, distributors receive a lot of meaningless paper, exactly 0.1 grams of suggested CashGold and a worthless sum of 4,800 KCB coins. Remember from our earlier report, the basis of this fraud alleges that these coins are underwritten by gold when in reality, there isn’t a single gram of gold to be had by anyone at Karatbars or their self-described gold mines in Africa. Unfortunately for the victims, the only gold is the figment of these unscrupulous founders imaginations.
One gram of gold costs approx. 40 €, which means that 0.1 grams of gold cost a modest 4 €. Dare we mention that CashGold bills are not accepted anywhere? The simple law of supply and demand in economics says that the price of something is only worth what someone else is willing to pay for it. If CashGold bills aren’t accepted as a payment mechanism anywhere, the value of nothing is nothing. Over 3,000 € for 0.1 gram of gold, not even the price of a cup of coffee, is worthless, making these unsecured KCB coins, a typical feature of illegal pyramid schemes. The VIP package pays commissions up to 60% which means that 99.9% of commissions are being paid on new cash inflows rather than the actual product value (0.1g of gold, about 0.13% of par value), suiting up as the second classic feature of an illegal pyramid scheme.
But this is about much more than running a single giant Ponzi system. The compilation of Karatbars is that of large-scale, commercial fraud, theft of intellectual property and shameless document counterfeiting.
Karatbars, KaratGold, and whatever the names of this deceptive network, boasts the first cryptocurrency secured by real gold. The mine in Madagascar is what these conmen use as the argument to back up this statement. In reality, as previously reported, the mine in Madagascar has no license for gold exploration. We got our hands on the “KBC White Paper”, analogous to their company bible which states: “This concept, which is unique in the world, also includes unrestricted coverage of the cryptocurrency by real gold. In order to be able to guarantee this real-physical coverage at any time, KaratGold initiated the participation in a fully developed, functioning gold mine in Madagascar for this purpose and has now successfully completed it. The presence on Madagascar corresponds to a current value of up to € 5 billion.” Surprise surprise, here we have yet another inconsistency. The white paper claimed the mine was valued up to 5 billion € whereas the audit and valuation papers that were presented publicly illustrated a value of 0.94 billion €, just one-fifth of the above-mentioned, yet again confirming the whole concept of Karatbars and its founding crooks are nothing more than a made up fairy tale.
Here is some more truth, coming from this web of lies. The research and analysis by the Investreport team found that the KBC, KCB Coin, and all cryptocurrency derived from the KaratCoin Bank or Karatbars are not backed by a single gram of gold. There isn’t a valuation or audit that can remove that very evident fact.
On the contrary. In the paper entitled “Valuation of Metals and Mining / Fort Dauphin, Madagascar Valuation of KBC Foundation” it appears that one of the KBC ringleaders, Markus Mincker from Frankfurt/Main (has plagiarised, in its entirety a report written originally in 2010 by Ms Svetlana Baurens from Switzerland. In the simplest of terms, KBC’s documents are not only fraudulent but rather stolen shamelessly from another author for a fraudulent purpose. These wannabe businessmen have created a phoney coin in a phoney company there is no reason to think that their documents wouldn’t also be phoney. This is most likely the doing of the wannabe-rico suave Harald Seiz, his non-existing KaratCoin Bank and worthless Karatbit Foundation. We need not mention that the Karabit Foundation assessment of the Madagascar mine is a blatant word-for-word copy of an original document drafted in 2010 by Mrs Svetlana Baurens of Basinvest in Switzerland. See for yourself, read here:
Let’s start from the beginning and take a closer look at the document falsification and its sloppy mistakes.
Chapter 1 “Introduction”: The oversized footnotes are evident throughout the document, suspiciously so. On pages 9 and 10, footnotes 8, 9 and 12 have been skipped, or forgotten or missed or who knows what. On page 7 there is a footnote 1, but no corresponding source. On page 8, we quite casually found the original company name “Antofagasta” which in all other references was replaced by “KBC”. If you are going to steal someone’s work, make sure you remove their name from it. Furthermore, as another example of the direct and blatant plagiarism, the original report states: “Chapter 8 is a practical chapter. A copper mining group, Antofagasta, is validated with different valuation methods.” The KBC forgery states:” Chapter 8 is a practical chapter. A copper mining group, KBC, is valued with different valuation methods.” It doesn’t make any sense that they could allow for such careless errors in their plagiarism. Make a note, Mr Seiz, next time you are going to steal someone else’s work, make sure you replace all the keywords, not just some.
Chapter 2 “Valuation models in mining and metals industry”: ” page 13 states that mining takes several years (5-10) for the mine to be functional, to quarry for gold. It’s just utter stupidity that the KBC leaders were sloppy on their version by stating that the mine in Madagascar is completely operable and functional: “In order to be able to guarantee this real-physical coverage at any time, KaratGold initiated the participation in a fully developed, functioning gold mine in Madagascar for this purpose and now successfully completed it.” , if it takes 5-10 years to develop a mine towards functionality, how did KBCs mine get done this quickly? Even if their la-la land if they decided to buy a mine that was almost ready for production, who in their right mind would sell a mine full of gold to these morons? Doesn’t make any sense, it’s absurd — just a farce. At least Bernie Madoff was a smart, well-educated guy. These clowns can’t even copy properly and forgot how to count to 12. The farce is endless.
Above: Fake Karatbars evaluation document
Bottom: The original by Mrs. Svetlana Baurens
And of course, embarrassingly so, another reference of not paying attention to the footnotes (number 35 is missing).
Chapter 3 “Valuations of Explorations Properties”: Yet again, letter by letter, was adopted unchanged, other than for the forgotten footnotes. Things get more exciting in Chapter 4, entitled “Cycle importance in valuation of mining and metals companies”. Page 31, like all other pages, was also replicated identically but here we have another twist to add some additional falsification to it. Illustration number 3 gives reference to the Basinvest report, mentioned earlier. These swindlers erased the correct citation and replaced it with “White Rock”, the company owned by Croatian Board Member, Josip Heit. Also, corresponding footnote 62 again replaced “Basinvest” with “White Rock”. Their actions are defined only as theft, fraud, copyright infringement, plagiarism, violating the intellectual property, all wrapped up into one nice, easily identifiable corrupt document. They are handing the authorities all the evidence they need to make their case on a silver platter with a big red bow on top.
In Chapter 5, page 44, the shameless fallacy continues where they tried to replace the original from Antofagasta” from the year 2010 to KBC in 2010; however, KBC did not even exist in 2010.
Chapters 6 and 7 were also completely copied from the original. Chapter 8, where the actual mine rating is concerned, was not only completely copied, but extensively faked. So, of course, since the original document is about the mine in Chile for the company “Antofagasta”, this name was replaced by “KBC” in all references. Furthermore, the statement sources and the timeline for the assessment in the last paragraph are forged as follows: “Antofagasta” is replaced by “KBC”, the bank “Merrill Lynch” and the year “2010” with “GCC” and “March 2014. Keep in mind that the GCC Gazella is owned by Josip Heit now renamed Gold Standard Banking Corporation AG (GSB). Further, investment banking firm “Raymond James” and “FD Capital” were exchanged with “White Rock Minerals,” another extension of Mr Heit’s company.
In subchapter 8.2, things get down to business. The Antofagasta mine called “Los Pelambres” was replaced with “Fort Dauphin”, and again, these clowns didn’t even correct the typos and retyped “Company Date” instead of “Company Data.” And, hey, guess what, KBC miraculously will have the same amount of gold as the other company’s copper. Here is where the logic fails again…the original company, Antofagasta, will recover (442,500 tons) as “caco3 Mineral” that will convert to copper. The KBC team failed to pay attention to inconsistency presented by the conversion to gold quantities. Gold and copper are measured quite differently; they are not apples-to-apples. You’d think these guys have created a pyramid scheme based on gold they would at least know how to measure it? Not these dimwits. Instead of 22 tons of gold, as indicated in the manipulated table and elsewhere in the evaluation paper as well as the audit, only 600 kilograms are mentioned in this white paper. They forgot to use their own made up figures. Do you believe the audacity?
In the KBC review, moreover, page 59, the footnotes and table source references are replaced by WR (White Rock) and GCC, and the various minerals, replaced by others. On page 60, illustration 15, the Antofagasta Mine Production Facilities are used to rename “Antofagasta Global Operations” to “KBC Global Operations”.
All of chapter 8 was forged with similar manipulations as described above. However amusing, as if it could get any more ridiculous, we found the absolute dumbest of all forgeries, on page 66.
The stock price of Antofagasta uses Bloomberg as its reference source which they replaced with “Token Price KBC”, and the crypto exchange, HitBTC in the Karatbar forgery document. The manipulated table suggests that HitBTC existed in 2004, and cryptocurrencies traded 15 years ago. Sheerly laughable. Who remembers the cryptocurrencies when the internet was still new, Napster was the hot company where you had to use CD players and laborious hours of downloads … How did these clowns at Karatbars not use any basic or simple logic when creating their forgery? It’s implausible they could be so careless, dumb, pathetic. In Table 19 on the same page, Antofagasta’s earnings per share have been replaced by earnings per token but wait a minute, how did the KBC token exist in 2008 when the company is only a few years old? There was no company, KBC, coins or any of the like in 2008. Guys at least hire a high school student next time you want to plagiarize; they will know all the tricks that you failed with as grown adults. We cannot stop laughing.
Even toilet paper has more value. In the suitability test for fraud, these clowns fit the bill. They thought they were smart. They thought they could get away with it and perhaps they did for a bit, but it’s all over now. The regulators are already on their tail; it’s only a matter of time. If their lawyers studied at the same schools they did, they’ve got a one way ticket to a nice long stay at the likes of Leavenworth.
In the third installation of this series we take a closer look at the money laundering methods via nested company constructs as well as the personal histories of Harald Seiz, Josip Heit, Ovidiu Toma and Alex Bodi.At any rate: Stay away from all companies in the KB network: be it Karatbars, KaratCoin, Karatbit, KaratGold, White Rock, GCC, GSB. The countdown to the seizure starts now.
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