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:

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37 Responses

  1. Capital Blu, you should have been careful what you wish for others. “If you muddy yourself, you will get mud also”.

  2. Did Capital Blu lose its clients money or did something else happen?

  3. Capital Blu caught the forex Flu that is going around.

  4. Capital Blu is also a CPO which sometimes extend beyond the FOREX market.

  5. With the NFA, all money needs to be secured and accounted for. No loose money.

  6. all i can do is laugh

  7. These investors are wasting no time.

    Shareholders Sue Merrill Over Proposed BofA Deal

    http://www.cnbc.com/id/26732941

  8. Jay,

    I agree. Thain wouldnt have agreed to the deal if it wasnt the best deal for the company. If they delayed and let things get worse then bofa would have just picked them up at an even sweeter price.

  9. Id also like to point out that whats happening on wall street at the moment is completely unrelated to the problems with these investment schemes in jamaica. the two cant even be compared.

  10. Congrats to Investforlife which has passed over 1/2million hits.
    That is astounding, this has way surpassed what exist on the #4 bus.
    Keep the hits coming.

  11. Whether regulated or unregulated, all the major financial institutions are going thru a hard time.

    Deposit insurance does not cover investments.

    Regulations seems to have not made a major difference, as most of the major companies in the USA are highly regulated and audited, and they still went under

  12. CulKull,

    If you look what is happening right now with Lehman Brother, Merril Lynch, AIG , their failure lies in loose or lack of proper regulatory oversight which has cause the latest set of crashes on wall street.

    Regulation does not in itself prevents business failure, however if it is found that their were violations, fraud, embezzlement etc, then the principals can be brought to books and in some cases their may be restitution to investors(if they move fast enough) .

    Its really sad to see what is happening now , as in the last two day over US$700B has evaporated making investors so much poorer.

    Really sad.

  13. what is your point cullkull?

  14. Jamaican national targeted in Cayman fraud investigation had been accused before.
    Yet another Jamaican has been accused of investment fraud.
    http://www.caribbeannetnews.com/news-10724–30-30–.html

    • Donovan Davis is a very likeable pathalogical liar. I read that an investor in Jamaica thought it suspicious that a small invesetment firm would have 4 jets. He didn’t have ANY jets. He claimed that he had “over 13 cars in his garage” with his favorite the Ferrari Enzo. He leased exotic cars, one at a time, and lived with his parents. He’s very mentally ill, because most of his lies were just harmless but weird! Why did he have to pretend he had jets and Ferraris? I’ve heard his parents are good people. Don was too stupid/naive to know the difference between harmless lies, and criminal fraud lies. People lost millions in Capital Blu. I heard his description, I’m a CFA and have been in the financial industry for years. I knew they were incompetant at best. I didn’t know how much damage they were doing, or else I would have found some authority on the phone to try and take interest.

  15. NFA takes emergency enforcement action against Florida firm, Capital Blu Management LLC. NFA issue cease and desist to Capital Blu!!!!!!!!!!!!

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

    For Immediate Release

    For more information contact:
    Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
    Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org

    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.

    Legal document of action taken above:
    http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=1695

  17. For Immediate Release
    For More Information Contact:
    Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
    Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
    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.

  18. “http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=1695”

    Read the document. These Blu people must seriously want a new home beside the the ex-President of Panama. Now it is a race to the new home between the Martinezes’ and the Davises’/Bromfield.

    • These people bilked ordinary people out of millions of dollars. Nothing except JAIL is enough punishment for these THIEVES. I talked to a recent college grad, who worked at Cap Blu, whose parents put in $350,000, and that was almost all their savings. Yes, very bad judgement, but they might as well been held up a gun point. I only know Don Davis, and he lies so good that I “almost” believed some of it for a year or so. He made “his millions owning a tile company.” He actually managed a tile store in town. “He gave his tile store Mercedes as Christmas Bonuses.” He had a jet “that he kept in Miami.” There was no jet. Lies would just poor out of his mouth so casually, that they were easy to believe. The idiot didn’t know when to stop lying.”

  19. what’s the fuss about?

  20. Bossman…ask the US$9000 a month man deh beside you if him nuh think is time you deal wid the case and save yuh neck?

    Time a get short…..

  21. (Section 3 (4) of the immigration ordinance)

    April 26th – May 3 2008

    Mi case……

  22. It seems as if you guys have run out of the gamut of information on the AIS in Jam down especially Mr. Investorforlife, Jay and that wanna be cant remember his post name…Oh Sirach.. Or maybe betta yet Mr. Investorlife you could fill us in on the happenings on the Wall Street Melt Down..Since you are in close proximity to the happenings (LOL). Anyhow I need to hear what is happening with DS, what the Hurricane Ike and Hanna blew away the case documents (LOL) or better yet might prejudice the case. I need to hear some juicy details from you guys you all have alarmingly silent.. Selah

  23. Capital was audited and regulated, lol, i guess they cant be held accountable for bad trading mishaps, their loses just comes with the teritory, fx trading that is

  24. Jay, on September 16th, 2008 at 4:20 pm Said:
    Regulation does work, well at least in the USA

    If you are implying that this action by the NFA is an example of regulation working while the actions of the FSC in Jamaica are examples of regulation not working, I invite you to note the similarity between the NFA’s order and the FSC’s cease and desist order.

    Imagine if, following the NFA action, the press, politicians, doctors, lawyers, etc, etc, came out and said “its a conspiracy!”, “there’s nothing wrong with FX trading!”, etc, etc. Imagine if Capital Blu just moved its operations to, say, Canada or the UK or Hong Kong, and it’s customers simply kept on investing with them.

    Then ask the question: “Why doesn’t regulation work?”.

  25. cullKull, on September 16th, 2008 at 4:38 pm Said:
    “Whether regulated or unregulated, all the major financial institutions are going thru a hard time.

    Deposit insurance does not cover investments.

    Regulations seems to have not made a major difference, as most of the major companies in the USA are highly regulated and audited, and they still went under”

    I agree with Jay’s response to cullKull’s comment but want to go further.

    The last sentence (above) is confusing the issue, however. On the contrary to what is stated by cullKull, the problems of the investment houses in the US are very good examples of regulatory success. Just remember that in each case (Bear Sterns, Merrill Lynch, Lehman) investor clients of these firms are not expected to lose a dime. These are the people that regulation protects.

    The huge losses in equity value of these firms are losses to the owners of the firms, not their clients; a bit like Carlos Hill or David Smith losing money when their schemes go bust. If it turns out that the managers or insiders of these firms have misled their shareholders then they too will face regulatory action. I have heard no hint of that in the news surrounding their demise, however. More likely the shareholders will be suing the managers claiming negligence or some variant of such as they try to gain some sort of compensation for their investment loss. But that is nothing to do with regulation and everything to do with company law.

  26. A little confusing your position about the regulated companies.. because shareholders are the major investors, so when you file for bankruptcy and your share value falls, then you lose heavily.

    Also, there is no compensation if you lose your money in normal business activity performed by the companies.. so I am not sure how you can say that investors are not expected to lose a dime.

    Insurance does not protect against investment losses !!!

  27. We should say a prayer that Capital Blu has done nothing wrong. Donovan Davis Jr. is a great man with heart, guts and soul! If something was done Illegally I would have to bet my life he had nothing to do with it!!

    • He’s a black 25ish year old, about 6′ and a little on the heavy side but not fat, and not muscular. Virtually nothing that comes out of his mouth is true. Also is very likeable. He’d brag about his jet, but he never had one UNTIL Capital Blu bought one, with their investor’s money. His cars were all leased, including the Rolls. He used to hang out with the Chart House Bar in Melbourne and was a friend of Wendy Rossi and her father. It was Wendy who introduced me to him, and it was Wendy who first told me he was a compulsive liar. He’d be SO casual…”Oh, my Bugatti Veyron, I can’t believe that I only have 49 miles on it.” There is no Veyron. “I just let my Mom take my jet to Vegas for a long weekend.” She was in Orlando getting her hair done. This was all before Cap Blu. I think his parents are wealthy, spoiled Don and made him think that only money would impress people, and became a sociopathich liar. Now he needs JAIL. He didn’t know that lying bragging, was different than lying stealing.

  28. cullKull

    No confusion. Shareholders of an investment house like Lehman are the tiny minority of investors related to that firm. The vast majority of investors are customers of the firm. After all, that is their business – providing investor services to their customers. I am making the important distinction between the owners of the investment house or scheme and the customers of the investment house or scheme. I may be proven wrong, of course, but five days after the Lehman filing for bankruptcy and I am still not hearing about their investor customers losing money because of it. This is my point. Regulation of investment houses is aimed at protecting their customers from bad acts of the investment houses. It also aims to protect them from the consequences of bankruptcy of the investment house which is holding their investments. That’s why if you owned Microsoft stock through Lehman before they went into bankruptcy you will still own your Microsoft stock after they filed for bankruptcy.

    Now, as you correctly point out, persons who bought Lehman stock (or bonds, pref shares, etc) are taking the proverbial bath. Regulation does not try to protect you from such losses (nor should it). But, by requiring full disclosure of material information to you at all times, regulation aims to ensure that you can make your own decision based on risk and reward. That’s why so many Lehman shareholders have sold over the last year and the share price dropped so low. Those who bought at the low price were no doubt betting on making a killing if the bankruptcy everyone was expecting did not materialise. They lost. No pity for them. As for those long-term investors/owners of Lehman who just never got the message over the last year and did not sell when they could, well, that’s why the stock market is not for everybody.

  29. Re: Friend’s comment about Donovan Davis….

    You must really be in love with Davis for his money but I know for a fact that he is a lying scum bag!!!

    This man was way too greedy and plain and hands down has the gift of gab.
    He tries to impress his propects with the fact that he has a many jets and some luxury cars. Thats where all these people money gone in to.

    • just curious, do you know blayne davis? I met someone by that name whose self admitted background seems to match the one in this article. If so, do you have any pics or can you descibe and/or tell me anything about him ? thanks.

      david

  30. http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2183

    Notice I-08-24

    September 19, 2008

    Request for Information

    Please contact NFA Manager Heather Johnson at (312) 781-1554 (hjohnson@nfa.futures.org) or NFA Supervisor Melissa Glasbrenner at (312) 781 -1509 (mglasbrenner@nfa.futures.org) immediately if you ever transacted business with, currently carry or have carried any futures, forex or other accounts in the name of, or controlled by, any of the following entities:

    Blu Fund FX
    Blue Fund FX
    Blu FX Options Benchmark
    Blue FX Options Benchmark
    CBM FX Fund Ltd
    CBM FX Master Fund Ltd
    FX Blu
    FX Blue
    FX Blu Management LLC
    FX Blue Management LLC

  31. To the friend that says Donovan is a great man with heart. I agree that he has heart and is a generous man. But with who’s money is he so generous? I too know the man well and can promise you he knew exactly what he was doing. An idiot he is not. Driving a Rolls Royce and flying in his private jet. Building a massive new home in a very exclusive neighborhood. Donating 75k to a local charity on a company check. At 26, this would all be very impressive if he could account for all of his investors money!

    • do u know blayne davis? if so, can you tell me something about him, age, description, etcetera because i believe I have met him and want confirmation.

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