May Daisy members still longing

May has gone, it is now the middle of June and no Daisies have bloom as yet. Since early June, a new update is now available from May Daisy to its memberships explaining the continued delay. The early June communication suggested that Cycle A was completed. However feedback from members has not suggested that this has been done.

Dear Members:

We apologize that we have not completed the updates to all the accounts. The updates have been delayed as we try to honour the many requests for status reviews. Update priority is given to the accounts in the earlier cycles. We have updated all of the cycle “A” accounts, therefore all persons in this cycle will now have seen this reflected on their account. This cycle has been closed. We have also closed off the list for the cycle “B” accounts and are in the process of updating these accounts.

We expect the payments to be on time and are working feverishly to ensure this happens. We thank you for your patience and wish you God’s richest blessings.

In past communications, May Daisy has promised that members would be placed in cycles and that persons would be paided based on the cycle they fell in. Based on the Cycle Plan, members in Cycle A should have been paid by June 13. However, it is not clear if any May Daisy member even knows which Cycle they belong to and NO payments have been made.

There has been rumours that May Daisy will be sending out statements quarterly not monthly. There is really no point to this as people continue not to be paid. There continued to be stories that once the members have been placed in cycles, which should have bee done already, ‘encashments’ or payments will be begin at the end of June.

In Blogosphere, a group of May Daisy Investors, have form a “May Daisy support Group” with an aim to tackle the Management of May Daisy, maybe a little too late, but it is better than sitting down idle and trusting those that have fail be keep promises.

There is still some answered questions, why was one of the Principals arrested in Zambia, was the arrest related to May Daisy funds, has the cases against the principal been dropped?

Wall Street bail out

We have a copy of the draft bill which seeks to save the US and world financial system from a complete meltdown.

The document is over 100 pages and is currently being debated as we speak. Some believe that there should be no bail out of wall street without a bail out of main street.

There are many who believe that these companies should be allowed to fail rather than to be rescued by the Government, as its corporate greed which is to be partly blamed for this monumental mess.

See bill below.

http://i.cdn.turner.com/cnn/2008/images/09/28/ayo08c04_xml.pdf

Forex to Ponzi Part 4

Like many FOREX Schemes today, FOMAC was international. Roberts spread his wings to Costa Rica where he became a naturalised citizen and open operations there. In Costa Rica he operated under the company ?Three Amreicas Consutlants???.

There he partnered with a Costa Rican citizen. The scam brought in about 500 persons with over 20 person “investing” over ?? $500,000 most of the others had in over ??? $100,000 and about 50 have $50,000 or less….

Related

• Forex to Ponzi Part 1
• Forex to Ponzi Part 2

Sources:

• in spanish
• Google Translation

http://babelfish.yahoo.com/translate_url?doit=done&tt=url&intl=1&fr=bf-res&trurl=http%3A%2F%2Fwww.nacion.com%2Fln_ee%2F2007%2Fagosto%2F14%2Fsucesos1202994.html&lp=es_en&btnTrUrl=Translate

http://translation.langenberg.com/

Google’s Translation

http://translate.google.com/translate?u=http%3A%2F%2Fwww.nacion.com%2Fln_ee%2F2007%2Fagosto%2F14%2Fsucesos1202994.html&langpair=en%7Ces&hl=en&ie=ISO-8859-1&oe=ISO-8859-1&prev=%2Flanguage_tools

http://www.nacion.com/ln_ee/2007/agosto/14/sucesos1202994.html

Crises in the world’s financial markets. What is the likely impact on Jamaica

How will the financial crises in the USA affect the global community and Jamaica to be very specific?

Some are saying that the current crises affecting Wall Street is reminiscent of the financial crises that decimated the Jamaican financial system in the 1990’s, but are there any similarity between the two.

The opposition spokesman on finance Dr. Omar Davis was on Nationwide News Network(Friday, 19th Sept 2008) and while not saying directly appeared to be hinting  that he has been somewhat vindicated based on the USA government reaction to its own crises.

Dr Davis said, the  vehicle used  for the bail out (Finsac) is very similar to what the USA treasury dept is currently doing in taking over the debts of the some of walls street largest companies and giving them substantial loans, designed to prevent a catastrophic meltdown of the worlds largest financial system.

JMMB has indicated( and correctly so) that it has a small exposure to one of wall street former giants, Lehman Brothers, but this involves propriety funds i.e. funds owned by the company and went on to make the point that its clients funds are not exposed.

Michael Lee Chin – AIC has indicated that it has exposure to both Lehman Brothers and well as AIG, which could impact investors with AIC, who have in the past 3 years experienced a serious decline in their investments.

http://www.radiojamaica.com/content/view/11723/52/

The local arm of AIG – located on Dominica drive has indicated that it has no exposure associated with its parent company financial troubles, but are they being truthful. We may never know, as now that the FEDS have loaned the parent company US$85B, the company may be able to save itself.

http://www.radiojamaica.com/content/view/11724/52/

The larger question however, is how will all this affect the following in Jamaica.

1. The inflation rate, which is already running away.
2. The marco-economic policies of the government.
3. Government borrowing on the international market, as loans become harder to get.
4. Earnings from tourism.
5. Earnings from Bauxite.
6. Remittances.

The question on many persons mind is, what about my money, is it safe.?

Where can I find a safe investment.?

I have even heard of persons who have invested with JMMB making their way to the investment house with the sole intent to withdraw their funds, having heard of a link between JMMB and Lehman Brothers.

The comments were as follows ” I have lost too much in the alternative investment schemes already and I just cannot take another loss”.

The coming weeks will be very interesting times for all investors.

Cash Plus Investors Rush to write claim forms

News has surfaced that Cash Plus investors can now fill out claim forms.  According to an RJR report investors heard a rumour that money was being paid and turn up at a  Cash Plus office in New Kingston.

However that was not the case as investors were told the needed to complete the “Proof of Debt’ forms and have them returned by Thursday,  September 2008.

The Cash Plus Claim forms can be downloaded here(PDF) – Click this link.
You will need Adobe Acrobat to open it. The form is provided courtesy of http://www.emeediate.com

Cash Plus Collapse in Dec. 2007 and despite promises to pay investors by the end of March 31, 2008 Carlos Hill failed to do so. Subsequently Cash Plus went into receivership and is now controlled by a court-appointed liquidator acting on the behalf of the Premier League Club Association (PLCA).

Related:

• Investors Swarm Cash Plus’s office

Capital Blu Suspended by NFA

The NFA has suspended Capital Blu’s membership. This is the latest twist in the Capital Blu saga. 

See details below:

NFA takes emergency enforcement action against Florida firm, Capital Blu Management LLC

September 17, Chicago – National Futures Association (NFA) announced that it has taken an emergency enforcement action against Capital Blu Management LLC (Capital Blu), a Commodity Trading Advisor located in Melbourne, Florida. Effective immediately, the Member Responsibility Action (MRA) suspends Capital Blu from NFA membership and prohibits Capital Blu from soliciting or accepting any customer or pool participants’ funds or placing trades on behalf of any customers or pools. The MRA also prohibits Capital Blu from disbursing or transferring any funds of customers or pools from any accounts without NFA’s approval and from acting in any manner which requires registration under the Commodity Exchange Act.

NFA issued the MRA to protect Capital Blu’s customers because Capital Blu has refused to fully cooperate with NFA in an examination of the firm and its operations. The investigation was prompted when NFA received allegations from customers of Capital Blu that it had provided false statements to customers and participants in the CBM FX Fund LP and possibly other pools.

The MRA will remain in effect until Capital Blu has demonstrated to the satisfaction of NFA that it is in complete compliance with NFA Requirements. Capital Blu may request a hearing before NFA’s Hearing Committee.

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the derivatives markets.

source: http://www.nfa.futures.org/news/newsRel.asp?ArticleID=2182

NFA wants information from Capital Blu investors

The trouble for Capital Blu does not end with its reported 90% loss. The NFA a notice issued on September 12, 2008 is asking if persons have done business with Capital Blu Management LLC, Blayne Davis, Donovan Davis, Damien Bromfield, among others, please contact them. This is not a good sign for Capital Blu.  

Notice I-08-23

September 12, 2008

Request for Information

Please contact NFA Manager Heather Johnson at (312) 781-1554 (hjohnson@nfa.futures.org) or NFA Compliance Director Ed Dasso (312) 781 -1551 (edasso@nfa.futures.org) immediately if you ever transacted business with, currently carry or have carried any accounts (including joint accounts) in the name of, or controlled by, any of the following individuals or entities:

Capital Blu Management LLC
CBM FX Fund LP
Damien Bromfield (Capital Blu Principal)
Blayne Davis (Capital Blu Principal)
Donovan Davis (Capital Blu Principal)
Joseph T Cavallaro
Christopher Shane Clausen
Nakano Capital Partners LP
Nakano Capital Advisors LLC
Nakano Capital Management LL

Capital Blu was never registered locally by the FSC and the FSC rightly warned and placed them on the list of UFOs. It now brings into question whether a merger with OLINT, as mentioned by Peter Bovell in his interview on Nationwide News Network, would have made a difference . The NFA is yet to respond to the response provided by I Trade FX to its complaint, in which OLINT figured prominently.

Source:

• Notice to members
• NFA details on Capital Blu

Capital Blue in a mess

Capital Blu is trouble. After reporting a fantastic 57% in one month earlier in the year, things gone in the opposite  direction. Some managers have been allegedly removed and a maximum drawdown of 15% has been imposed.

See letter. A few person on this blog had questioned the auditors being used. 

Capital Blu Investors Suffer 90% Losses.
Dear Capital Blu Clients,

In Mid-July we commenced trading at Saxo Bank and began running parallel programs with PFG. While both programs were utilizing the same exact strategy and held essentially the same positions; our trading team began noticing significant differences in the platforms. Some of the key differences were:

•  Quoted Rates with inflated spreads on both platforms.
•  PFG required margin on net position; Saxo Bank required margin on gross positions.
•  PFG portfolio could be managed through a single master account; Saxo Bank’s portfolio had to be managed by each individual account.

What appeared to be manageable challenges on both platforms unfortunately were exaggerated on August 8th when the market made a dramatic trend reversal.

On the Saxo platform margin calculations which were averaging around 20% rose to over 100+% (extremely abnormal). Our trading team immediately began rebalancing the portfolio to reduce margin, however, due our inability to rebalance the entire group of managed accounts at one time we had a few clients get stopped out resulting in catastrophic losses. The accounts that were still below the 150% threshold had to be managed independently which ultimately compromised the trading strategy. Over the course of the next several weeks our trading team worked to rebalance each individual portfolio, however, since we were forced to unload positions based on necessity we were left with very few favorable positions and ultimately saw the entire managed account portfolio stopped out for approximately an 80-90% lose in every account.
We truly understand the frustration of each and every customer and wish there were something more that we could have done prior. In hindsight there were several actions we would do differently; however, this isn’t a time for what ifs as you deserve a plan for how we are going to move forward.

So the question many of you are asking of Capital Blu is where we go from here. Well first and foremost, you have our commitment that we will do everything commercially, legally and ethically possible to rebuild each and every client’s account.
Internally, we have taken the following actions:

• Blayne Davis, Director of Portfolio Management is no longer a member of the Capital Blu.
• Implementation of formal risk management procedures to ensure a client’s max drawdown is 15% regardless of trader, platform, strategy, etc.
• Indefinite suspension of the BluFX Options Benchmark Managed Account Program.

Proposed Reparation:
While we understand that many of you are looking for us to simply cut a check to reimburse the losses, we have been advised by our legal team that we cannot commercially offer this type of reparation. As per the program disclosure, Capital Blu Management will honor the high watermark of the August 1, 2008 balance for all clients in the BluFX Options Program. In essence, we will rebuild each and every account free of any commissions or performance fees until we have brought the account balance back to the August 1, 2008 balance.

Kind Regards,

Joe Mills | Director of Sales & Marketing
Capital Blu Management LLC