Karatbars confession in front of a district court in Germany

Impending Bankruptcy –

Karatbars Already in Crisis

The Karatbars story sparked a gold-digger atmosphere and hype among thousands of affiliates: allegedly own gold mines in Madagascar, a crypto token backed up by gold, a presumed own bank in Florida, CashGold, which was supposed to replace the global financial system, a smartphone that wants to rival the NSA in data security as well as ATMs from which one could theoretically draw the CashGold collector notes, if one could only find one nearby. It’s always about trust, the art of making others believe the perfect story. And if this threatens to break, because the perpetrators of these scams operate in the world of organized crime and will stop at nothing. The brutal and criminal Karatbars “managers” seem to employ every means to prevent the large-scale gold scam comes to light. But let’s start from the beginning.

The Anatomy of a Fraud

What made con men like Bernie Madoff and the – less talented – Karatbars crooks so successful? It is an ancient story – the story of trust, the basic need of a human being to believe in something that makes life meaningful and confirms our fundamental view of the world and ourselves. Scammers serve our secret longings, our belief in beautiful images and dreams. And we fall for them because they are a bit like Robin Hood.

In a way, scammers like Harald Seiz, Josip Heit, Alex Bodi, and Ovidiu Toma have an easy game. People believe what they want to believe. Their talent lies in finding out exactly what we want and then they present themselves as the perfect medium for fulfilling this wish. Impostors like Seiz, Heit & Co. are responding to this need, and the invented gold mine bonanza was their fairy tale. Fraud thrives in times of social and political upheaval, and old beliefs are then no longer sufficient. Nothing is more convenient to a conman than the sense of discomfort that stalks us as the world changes as we know it. Who knows if this business does not mean securing the future. The same patterns that were effective in the days of the Wild West still work today, only the platform has changed. It is always about trust and the confidence of another profit to beat.

Before a fraud can be committed, it always requires an emotional basis, then it needs logic and conviction and a pretense of real profit. By the time the situation gets hairy, we are usually so emotionally and economically involved that we ourselves do most of the work of persuasion. Sometimes we get even more involved when things go wrong, so when we’re completely ripped off, we do not even know what’s happened to us.

Most of the scams remain unrevealed because the truth would be simply embarrassing. In Karatbars’ case, neither of these factors are true. Despite all efforts to fix the precarious situation with ridiculous videos, the Karatbars scam remains just too obvious. There is already so much evidence that it is near to impossible to remedy the situation.

The video message of Josip Heit also shows how a scammer thinks and behaves. He attacks others, behaving arrogantly when questioning his person or the business. Reputable and serious businessmen do not mind if their business is being questioned. It is important for a scammer to end up victorious rather than a loser. The worst thing that can happen to a scammer is to lose face. Therefore, in the coming weeks we will certainly have to reckon with embarrassing performances by Harald Seiz and Josip Heit, but at the same time be able to analyze the fraud from a clear perspective. At least a decent dose of laughter and mockery will be provided by the Karatbars conmen, and it is almost certain that we will be amusingly entertained with Seiz’s and Heit’s statements. No expensive suit or luxury wristwatch can help restore credibility. The lies have been brought to light, and the truth has already spread around the world, but hey, at least it wasn’t the pinstripe suit of Seiz & Co. which brought them down.

So, How Is Life for the Karatbars Conmen at the Expense of the Ripped Karatbars Affiliates?

One question remains unanswered: why did Karatbars fail at leveraging the promised gold exchange (100 KBC tokens for 1g of gold) at the Gold Independence Day event in Las Vegas? By complying with the promise, they could have had their credibility cemented and further boosted the business. Was there not enough money to make this exchange happen? Was the money already spent on finance their luxurious private lifestyle? Where did all the millions of dollars remain? How does it live at the expense of ripped Karatbars affiliates?

One question remains unanswered: why did Karatbars fail at leveraging the promised gold exchange (100 KBC tokens for 1g of gold) at the Gold Independence Day event in Las Vegas? By complying with the promise, they could have had their credibility cemented and further boosted the business. Was there not enough money to make this exchange happen? Was the money already spent on finance their luxurious private lifestyle? Where did all the millions of dollars remain? How does it live at the expense of ripped Karatbars affiliates?

It is typical for fraudsters to spend the money acquired by criminal means for the purchase of status symbols, such as villas, cars, expensive watches or clothes, etc., which gives them the feeling of grandiosity. Ten million euros, which Harald Seiz has simply stolen for his personal luxury lifestyle, money that does not belong to him, not to mention the fact that the funds come from an illegal investment scheme.

Attention, Mafia!

Sadly, such attacks are common to the mafia structures behind Karatbars. The Romanian mafia boss from Sibiu in Romania, Adrian Tâmplaru, is the Godfather of Alex Bodi. He was involved in a stabbing in a Romanian club and was detained for illegally carrying weapons. Even local mafia attacks between Templaru and a certain Mircea Ursu from Bucharest ended in armed attacks and are known to the police.

Alex Bodi with his Romanian Godfather Adrian Tâmplaru

Josip Heit and Alex Bodi

Romanian mafia boss Adrian Tâmplaru at the Formula 1 Grand Prix in Abu Dhabi

When did the decline of Karatbars actually start? The Eastern European mafia structures around Josip Heit and Alexandru-Nicolae Bodi (Alex Bodi) certainly played a key role in the fraud scheme. One might almost be inclined to think that Harald Seiz is helpless at the mercy of this senior Mafiosi. Alexandru-Nicolae Bodi aka Alex Bodi is the God Son of the feared Mafiosi Adrian Tâmplaru from the Romanian Sibiu. According to Romanian press reports, Adrian Tâmplaru also sat several years behind bars. There are also rumors circulating against Josip Heit that he is a former felon and spent a few years in jail.

Above: Romanian mafia boss Adrian Tâmplaru at his restaurant “Sibiu GrillHaus” in Offenbach am Main, Germany

First Court Rulings Against Karatbars International GmbH From Stuttgart

The noose is slowly tightening around the neck of Seiz, Heit & Co. In the meantime, there were the first court rulings in favor of damaged partners, the former consultant Dirk Zahlmann under the file number AZ 3 O 33-19 of the district court in Wiesbaden, Germany, and a marketing company from Mainz, Germany. In both cases, Karatbars International GmbH tried to shift the blame to the plaintiffs. In the case of Zahlmann versus Karatbars, the latter attempted to outlaw the plaintiff by alleging theft. The district court in Wiesbaden rejected the allegations of the defendants and sentenced Karatbars to pay EUR300,000 to the former consultant Zahlmann. Unsubstantiated accusations and fictitious statements have just bad prospects of success in courts. Karatbars cannot trick the judiciary with their scam, that is for sure.

The luxurious lifestyle of the Karatbars conmen at the expense of their Affiliates.

A lifestyle that doesn’t speak bankruptcy.

According to a press release published on August 15, 2019 on https://www.landespressedienst.de/landgericht-mainz-olg-koblenz-entscheiden-zu-gunsten-der-steinberg-marketing-gmbh/, Karatbars tried to obtain an injunction in front of a German court under the file number Landgericht Mainz 10 HK O 4/19 against Steinberg Marketing GmbH, demanding various information claims, accounting claims and also the transfer of KBCs.

The same source further states: The court found the application to be unsubstantiated and doomed to failure. The court denied all requirements for the issuance of an interim injunction pursuant to §§ 935, 940, 917f ZPO. In addition, the court denied a so-called “ground for injunction”. The remarks on p. 4 f. of the court order are remarkable and absolutely groundbreaking, in which clear reference is made to the insolvency risk of the aforementioned applicant and the danger that the opponents would have made uncovered promises intended to exchange gold. Besides, the resolution states: “To the extent that the applicant refers to the fact that a risk of insolvency threatens him because he had promised customers to exchange 100 units of the crypto currency KBC sold to the customer for one gram of gold on July 4, 2019, this does not constitute an “emergency” as defined in § 940 ZPO… In expectation of high profits, the applicant promised to exchange digital crypto currency (KBC) for gold to clients without having an overview of the income from its sale… The financing model ICO, which the defendant has agreed with the applicant, is a speculative transaction with the crypto currency KBC, which is intended to generate high profits for the applicant. If the applicant is threatened with insolvency because she has made “uncovered promises” to customers within the framework of the ICO initiated by her regarding the exchange of 100 units of the crypto currency KBC into gold, this shall not be considered an emergency as defined in § 940 ZPO. Total losses and the resulting insolvency risks are part of the business model of an ICO system…”. The fact that the court speaks of “uncovered promises” and an “insolvency risk” on the part of the other party in such clarity is remarkable and very rare.

Despite the well-founded decision, the opposite side forced an oral hearing before the Mainz Regional Court and even extended its applications there — against the indications of the court. She also failed in this respect “cracking” and to the full extent by rejecting the application. Subsequently, she sought the sole remedy of an appeal to the Koblenz Higher Regional Court as the competent appellate court. The aforementioned “Karat Gold Cooperation…” under file number 6 W 189/19 also failed there because of the legally binding and final decision of 03.07.2019, because the Senate in Koblenz is the court with the highest ranking and the highest decision. The Senate of the Koblenz Higher Regional Court stated and explained in detail that the “immediate appeal” was unfounded. No claims existed, in particular no claims to surrender.”

However, it is interesting that Karatbars had only made losses since their founding in 2011. Only in the 2014 financial year, after a disastrous year in 2013 (net loss of EUR 1,151,393.68 and liabilities of EUR 985,566.91), the German LLC was able to generate net income for the year 2014 of EUR 1,288,649.25. The following year Harald Seiz got a company loan amounting to Euro 508,809.26. For the following years – from 2016 to 2018 – all of a sudden no financial reports have been filed until today. Instead, on May 14, 2019, an existing company called Firststep 24 GmbH from the German city of Leipzig was bought up and renamed into “Karatbars Karatbars Gold GmbH” under the commercial register No. HRB 769390. What no one noticed so far is that Karatbars is now actually a completely new company with a similar name, same CEO, and the same business address in Stuttgart in Germany, Vaihinger Street 149A. Therefore, the most important question here is where all the paid-up money from the Affiliates went to. Certainly not to the German tax authorities but rather straight into the pockets of Seiz, Heit, and their fellow conmen and scam enablers.

Buy it, strip it, flip it – that seems to be the obvious motto of Harald Seiz, Josip Heit, and his Mafia mates. The main thing is, the lifestyle is right.

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