End of the Road for I-Trade FX

Is it the end of the road for I-Trade FX? It appears that way, if announcements seen and a notice posted on the website mean anything.

I Trade FX notice

Forex Capital Markets LLC (www.fxcm.com) announced on May 4, 2009, it has reached an agreement to acquire the U.S. and international retail forex clients of i-Trade FX. Subject to regulatory approval, accounts are expected to be transferred from i-Trade FX to FXCM on May 8, 2009. source 

This source offers an explanation on what is happen although there could be more to this particular story.

Like several other forex firms, I-Trade FX has decided to cease offering service to US retail clients. Other firms that have decided to exit the U.S. retail business include ODL Securities, Hotspot FX, and CMC Markets. To offer retail forex trading services under NFA rules, Forex Dealer Members (FDMs) will be required to have a minimum of $20 Million in firm capital as of May 16, 2009. source 

I-Trade FX’s relationship with the David Smith/OLINT and the resulting problems with the the NFA has certainly not helped their cause. Last  month, the NFA fined I-Trade FX US $250,000.

Interestingly, the shut down appears to be affecting some non-us clients. One visitor to the blog from Australia commenting on the issue, said  that since May 8, 2009,  she has been unable to get access to her account and the lack of response from I-Trade has been a source of frustration. 

We would love to hear from I-Trade FX.  I-Trade FX customers would love to hear from you.

Sources:

 

 

Of interest:

NFA fines I Trade FX LLC $250,000

Investforlife has just received news earlier today that the NFA has imposed a US$250,000 fine on I Trade FX LLC for failing to implement a anti-money laundering program.

April 28, Chicago – National Futures Association (NFA) has fined I Trade FX LLC (I-Trade) $250,000 for failing to implement an adequate anti-money laundering (AML) program. I-Trade is a Futures Commission Merchant and Forex Dealer Member of NFA located in Lake Mary, Florida. I-Trade solely conducts retail, off-exchange forex business. The Decision, issued by an NFA Hearing Panel, is based on an NFA Complaint filed in June 2008

The Panel found that I-Trade failed to adequately implement its AML program by not filing a suspicious activity report (SAR), not investigating deposit and withdrawal activities of the accounts of two Jamaican investment clubs, Olint TCI and TCI FX, and not investigating the source of funds received from two of I-Trade’s customers.

See final judgement here at this link.

Related:

F1 vs May Daisy (Part 2)

On June 26, 2008, Steve Plamer & F1 investments has filed a lawsuit in a Flordia court against Ingrid Loiten, May Daisy, I Trade FX, LLC, Deutsche Bank Trust Company Americas and Turks & Caicos Banking Co. Ltd.  In part 2 of this article we examine briefly the counts  as stated in the lawsuit.

These are the Counts as outlined in the lawsuit 

  1. Breach of contract
  2. Civil theft
  3. Conversion
  4. Unjust enrichment
  5. Demand Accounting 
We will now present a brief outline of each charge.

Count #1: Breach of Contract

Breach of contract is pretty much self explanatory.  F1 investments is accusing May Daisy and Ingrid Loiten of the following breaches.

  • Wrongful transferring money to 3rd party
  • Delegating duties
  • Failing to exercise diligent honesty
  • Failing to return funds when requested.

Count #2: Civil theft

In this count F1 Investment is basically saying May Daisy and or Ingrid Loiten has stolen their money. Civil Theft appears to be a american statue in some states including Florida. In summary it is a civil action brought by private individuals and is basically similar to obtaining money by false pretense, fraud and or deception.  It is a statutory right, and in Florida it is defined in §812.012, Florida Statutes.

Count #3: Conversion

This has to do with intentionally and wrongfully depriving another  person of his property permanently or for an indefinite time.  The intent component is important and F1 Investment is arguing that May Daisy/Ingrid Loiten has intentionally deprived it of its money.  The failure to return property(money) also is a part of conversion.

Count #4:  Unjust Enrichment 

In the this count F1 Investments is arguing that May Daisy has been duly enriched at the its expense and under obligation to make restitution.  F1 investment is asking May Daisy has unjustly gained it must return F1’s money

Count #5: Demand for accounting

It is in this count, that I-Trade FX and the other defendants come in. F1 Investment is asking the court to demand the accounting records of Ingrid Loiten and or MAY DAISY. That is, they are requesting that all the transaction records for accounts held with these defendants, including I-Trade FX be produced.

I am not a lawyer so the information presented is my understanding based on information available. Please consult a lawyer for legal advice.

Sources:

A MTI student Confesses

BeanStalk as he calls himself was drawn to the allure of FOREX trading. After all, Market Traders Insitute(MTI)  had promised in a September 1, 2006 AD placed in the Financial Gleaner, to turn US$2,000 into US $10,000 in 20 days*. After being weighed down, BeanStalk thought it was time get this off his chest.

My experience with MTI is one of deceit and lies, all to pull in more clients and give them false hopes. I blame myself because i got into trading with MTI only because of DS and without doing more research into trading FX. I was told by MTI that I would be making 25% within 3 months of trading. Well, after 12 months of trading, I am down US $100,000 and lost everything. I gave my all into trading and traded full time only to realize that it’s impossible to make consistent profits. If I was had a more realistic perspective to trading FX, I would not have eventually lost all my money. My fault.

Other Students, Similar experience

I have kept in touch with students from MTI classes in Jamaica and Florida and none have them have made a penny. They eventually lost all their money and lost everything to a dream. Several times in MTI mentorship, I would ask the Admins, where are the prior students that are successfully trading. How come none of them ever come into the Chat room? Never once did anyone in there Chat room or Mentorship ever admit to making any money consistently. Yes some made money for a few days, or maybe a month, but eventually lost everything. I even would ask the Admins how much they were making themselves trading, and they could never answer the question. But every month, you would see new hopefuls joining MTI and coming to the chat room with visions of grandeur. Eventually they all just faded away.

On doing his research

After doing more research, i have since found out that most investment banks in the world that trade FX only make between -10%(minus) to 30% per year. So how is it that DS was able to make more than 250% per year?

I specifically remember FXChief telling us about MTI bringing FX trading into Austrialia and South Africa and getting kicked out by the government because of FX Scams. He also told us about people committing suicide after losing lots of money to FX scam artist. Government eventually closed down there offices told them to get out. My point is FxChief has done this before in foreign countries and knows what eventually happens.

I believe that when FXChief originally meet DS, he told DS how he could really make money and they formed a partnership. I think DS was a decent trader but was running Olint as a partial Ponzi by using new investments to pay out returns to make up for his losses. DS knew he could not consistently make enough trading to pay out 10%/mo and that’s why (in my opinion) he has never been able to open his books.

Again, I blame myself. I was the FOOL.

It is time that people start asking the FXChief some serious questions. We have sent questions to MTI and we have received no response. If someone from MTI is reading please give us an e-mail so that we can send questions again or e-mail hyipmyths [at] yahoo [dot] com.

What is your story as a MTI student?  

Related:

* conditions apply.

Please note these the views expressed in this article do not necessarily represent the views of investforlife.wordpress.com and are presented for information purposes only.

Hado views on MTI, OLINT, David Smith, Scams

Before July 27, 2007 not many knew of Bassilios Hado of Chez Maria. Chez Maria is a restuarant situated in Kingston Jamaica offering Mediterranean cuisine.  All that changed when the his name appeared in a controversial AD placed in the Sunday Gleaner by Market Traders Institute(MTI). Bassilios Hado was gracious enough to visit this blog and posted a few comments and responded to few questions posed to him. We share some of his responses below.

What caused you to have, quote,”never believed in what he(David Smith/OLINT) was offering”? What were the danger signs you saw?

After practicing and learning the forex, I found out that in reality that there is nothing name 10% monthly, people lose some months, the best money management organization or companies in the world are able to make 30-36% a year this tells us everything, most people doesn’t know that we need to clarify this and open a thread to educate people about what is the Forex and the danger.

This thing that happened in Jamaica happened already in other countries, people has to remember that in our days most of has access to the internet, spend couple minutes and check out about anything you want to invest in or do and there you go you have all the positives and negatives and then you can decide. The danger signs are what is happening with Olint and what happened to others, all what I can think of or pray for is that the people of Jamaica that invested in DS get through with at least their capital!

Why did you not as some people say, “invest a thing” with him(David Smith/Olint)?

Honestly it was hard not to I was tempted, people around me told me all sort of things for the past 2 years, but what kept me out of it is the fact that it happened already in my country 15 years ago where members of my family suffered from it, up to now, and the second thing, I worked extremely hard for my money, I have 7 family members depending on my actions and soon a second baby on the way, I cannot afford a mistake like that, so I decided to educate myself more about forex.

About his testimony in the MTI AD

As I said in the MTI Ad. That I decided to educate myself and not give my money to strangers, I hope that people really understand that there is a big money to make in Forex but be careful it’s the most dangerous way to make money, whether you do it yourself or give you money to many managers.

A person commented about me and said that if I was a successful trader so why I can’t afford this and that. Some people think successful trader means Millions, I cannot blame them or stop them for thinking this way, and they are free. I am what I am and didn’t promote myself as the best trader neither MTI,

Current problems best for OLINT and OLINT investors

In my opinion this is the best thing that could happen to Olint and the investors, I wish it happened a year ago,

  1. less people would have suffered,
  2. once for all the people are going to know the real story hopefully,unless some deals out there make this thing disappear.

So we have to make sure keep on asking questions until the truth shows up and also to make sure that rich people don’t collect all the left over money because some other can’t afford lawyers!.DS come out and say all the truth people out there suffering and need to know you owe them that since they invested in you and trusted you.

Tell us more about your previous experience 15 years ago

Basically the same thing persons promised big returns, and the difference is that those persons disappeared with the money, not crashed but DISAPPEARED and all now no one knows where they are, people say that they are in Brazil who knows. My mother still up to now cries for the money that she lost every time she remembers.

Another thing was used to happen I hope that It wont happen in Jamaica, people was used to build 10 stories building for example and sell the apartments on the blue prints because it was cheaper, just before the building done, those persons disappeared and the worst part is that all apartments was not to 2 or 3 different persons and there was no plumbing or electrical installations, so be careful out there when you by on blue prints.

By the way I think you made an excellent decision not to “invest” with OLINT

Thank you, I am relaxed now from all the chatting and pressure from family and friends, they just realized how important was my advice, and I feel sad for all those that get caught in it.

On Protecting his brother, Ponzi Style

5 months ago I found out that my brother was planning to put all his savings that he worked hard for with DS against my decision, I had to convince him that I would put it in my friend name that has already an account with Olint. It took him some time to believe me because he knew how much I was against.

Bottom line I honestly nearly gave his money to my friend, but hurt shivered to moment I was ready to do so and decided to keep his money in my safe, without he knows, at that point DS wasn’t paying a penny. At one time he asked me draw for him his profits for 2 months, I paid him from his money, he was very happy, he thought he took the right decision. His happiness lived short when he heard all about Olint crashing or problems.

There were no words to explain his pain and tears, but I can assure you when I went to him with the balance and told him the story he was the happiest man on this earth, because only at that point he realized how much important was that money.

Value of this Blog

This is a very important thing that we have such places to comment and give our views, we are all hear to know the truth because people related to us are suffering and other soon start to suffer, so who ever knows something come out with it and stop speculate things.

Like Jay, we thank Bassilios Hado for providing full disclosure of himself, the information providing has been very informative. Hopefully we will now hear from other MTI students including Beenie.

For more you can read the exchanges in the comments section of  MTI says – Scams,Schemes, Scandals!

Related:

Please note these the views expressed do not necessarily represent the views of investforlife.wordpress.com and are presented for information purposes only and in NO way expresses endorsement of MTI by investforlife.wordpress.com.

F1 vs May Daisy (Part 1)

In an interesting twist one alternate investment scheme(AIS) or Un-regulated Financial Organisation(UFO) has sued another. This occurred when F1 investments had enough of May Daisy’s failure to pay over sums it had requested. Here are more details on that lawsuit. There are five(5) points of contention

  1. Breach of contract
  2. Civil theft
  3. Conversion
  4. Unjust enrichment
  5. Demand Accounting

Background
Based on the information at hand, F1 investments contracted May Daisy to trade Foreign Exchange with specific contractual conditions. The account with May Daisy operated from August/September – December 31, 2007. A request for full encashment was made on January 13, 2008. That request has yet to be honoured. This effectively forms the basis of the lawsuit.

Time-line
The time-lime will further explain what appears to have happened.

  • August 16, 2007 – US $2,500,000 given to May Daisy
  • September 6, 2007 – Contract finalised
  • Sometime after September 6, 2007 – A further US $9,330,278 handed over to May Daisy
  • By December 31, 2007 – F1 account with May Daisy valued at US $20,191,858.16
  • January 13, 2008 – Request made for funds, i.e full encashment, no funds forthcoming
  • April 2008 – Ingrid Loiten arrested in Zambia and US $7,000,000 seized.
  • June 13, 2008 – Court documents signed
  • June 26, 2008 – Documents filed in Florida court.
  • July 25, 2008 – Letter sent out to clients
Special Terms
The contract between F1 investments and May Daisy appeared to have some specific terms. The following are highlighted as they are mentioned specifically in the lawsuit.
  • Only May Daisy and Ingrid Loiten should trade the F1 investment funds.
  • Trading should not be sub contracted.
Allegations
  1. May Daisy and Ingrid Loiten allegedly used I-Trade FX which was a breach of contract
  2. May Daisy allegedly sub-contracted actually trading to I-Trade FX which was also a breach of contract.
On June 26, 2008, Steve Plamer & F1 investments has filed a lawsuit in a Flordia court against Ingrid Loiten, May Daisy, I Trade FX, LLC, Deutsche Bank Trust Company Americas and Turks & Caicos Banking Co. Ltd.  In Part 2 we will attempt to break down the counts in the lawsuit and explain how I-Trade FX and the other defendants come in. 
Related:

I-Trade and Martinez Response Delayed

The NFA is reporting that I- Trade FX and Isaac Martinez’s response, to the June 30, 2008 complaint, should be available on August 15, 2008. According to the NFA information desk, an extension was given and as soon as the response is available it will be posted on their web-site. They further stated that there was nothing to be read into the delay as it is a usual occurrence.

Serious Penalties if found guilty
According to the complaint document, at the conclusion of the proceedings, the NFA may impose one or more of the following penalties:

  1. expulsion or suspension for a specified period from NFA membership;
  2. bar or suspension for a specified period from association with an NFA Member;
  3. censure or reprimand;
  4. a monetary fine not to exceed $250,000 for each violation found; and
  5. order to cease and desist or any other fitting penalty or remedial action not inconsistent with these penalties.

History
On June 30,2008, the NFA filed a complaint against I-Trade FX after investigations found that I-trade FX failed to file Suspicuous activity Report(SARs) on some transcactions carried out by OLINT, TCI FX, David Smith, Ingrid Loiten of May Daisy and Gareth Harris.

I-Trade FX response to the complaint is of interest to many persons especillya OLINT and May Daisy investors. What I-Trade says might not have a bearing on how quickly persons get back their money but it might just give further highlights into what happened to the money.

The Department of Justice in the United States in a letter dated July 11,2008, later froze all the assets of the said persons/organisations named above in that NFA complaint against I-trade FX. Whether this was conincidence or related no one is sure but reasonable conclusions could be drawn.

MTI on the Defensive?
On Sunday July 27, 2008, Market Trader’s Insitute(MTI) a sister organisation of I-Trade FX, published an AD. That AD it could be said stopped just short of calling David Smith’s OLINT and Ingrid Loiten’s May Dasiy and other Forex Clubs scams and guilty of taken advantage of Jamaican people.

Related: