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  • #161
  • Jan 18, 2008 11:16pm Jan 18, 2008 11:16pm
Has anyone heard any new news abut this case or the new court date?
  • #162
  • Jan 18, 2008 11:29pm Jan 18, 2008 11:29pm
I just don't know why people keep on using all these brokers.

If you're not scalping stick to established names like Forex.com / GAIN Capital, FXsolutions, Interbank FX, EFX... it's always those that try to squeeze everything out of the lemon that end up with all the seeds.

Sure their charts suck, but you can always use free charts online if you're a naked trader or use minimal indis.

I feel for whoever is in on this, hope you get your money back.

*Sigh*....
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #163
  • Jan 19, 2008 2:38am Jan 19, 2008 2:38am
Quoting effilang
I just don't know why people keep on using all these brokers.

If you're not scalping stick to established names like Forex.com / GAIN Capital, FXsolutions, Interbank FX, EFX... it's always those that try to squeeze everything out of the lemon that end up with all the seeds.

Sure their charts suck, but you can always use free charts online if you're a naked trader or use minimal indis.

I feel for whoever is in on this, hope you get your money back.

*Sigh*....
agree, if your not a scalper or news trader then you can stick with the big boys.
If I Go Broke Trying Then I Will die happy.
  • #164
  • Jan 19, 2008 2:39am Jan 19, 2008 2:39am
Quoting effilang
I just don't know why people keep on using all these brokers.

If you're not scalping stick to established names like Forex.com / GAIN Capital, FXsolutions, Interbank FX, EFX... it's always those that try to squeeze everything out of the lemon that end up with all the seeds.

Sure their charts suck, but you can always use free charts online if you're a naked trader or use minimal indis.

I feel for whoever is in on this, hope you get your money back.

*Sigh*....
The thing is as far as anyone knew, the NFA included, FXLQ was one of the big players. I think FXLQ account holders should consider going after the NFA for their money.
  • #165
  • Jan 19, 2008 9:02am Jan 19, 2008 9:02am
Quoting Tara Stars
The thing is as far as anyone knew, the NFA included, FXLQ was one of the big players. I think FXLQ account holders should consider going after the NFA for their money.
Not to be overly harsh but that is one of the dumbest things I've ever heard. That's like saying you should sue your local police department because some one broke into your home and stole your money.

The NFA is doing their job, they discovered the discrepency and called FXLQ on it; now the truth is out there an it's being dealt with.

This is a very unfortunate thing, it's not the first time it's happened and it probably won't be the last.
Trade Small. Be Patient. Learn to Survive.
  • #166
  • Jan 19, 2008 9:57am Jan 19, 2008 9:57am
Not true,

here is the premise,

1) NFA and CFTC are REQUIRED to verify and fully check any futures, OTC forex broker, FXLQ was on the books for 6 months with 31 million dollars in the CFTC report with NO validation of information.

2) NFA and CFTC had NO compliants against FXLQ since inception

3) NFA had fined SEVERAL other brokers for lack of funding, accounting information.(some shut down later)

4) NFA had 4 days prior to the CFTC court action to freeze funds.

is there a suit, DAMN right, negligence is the sute, I have around 500k in there and another has more than me, when this is over, I will get my clients funds from NFA BUTT, for negligence.

reasons for negligence,
1) not verifying overseas bond.
2) no audit for complience after bond was presented.
3) not insuring bond is in US
4) not allowing withdrawals during that 4 day period(they have no legal authority to stop them).

if you think they are doing thier job, wrong, they are doing what is politically expidient from Futures " big boys" to "thin the herd" as now the retail is getting larger and larger.

Andy <<Cowboy>> Stapleton
www.forexmgr.com






Quoting FXAnalytics
Not to be overly harsh but that is one of the dumbest things I've ever heard. That's like saying you should sue your local police department because some one broke into your home and stole your money.

The NFA is doing their job, they discovered the discrepency and called FXLQ on it; now the truth is out there an it's being dealt with.

This is a very unfortunate thing, it's not the first time it's happened and it probably won't be the last.
  • #167
  • Jan 19, 2008 1:18pm Jan 19, 2008 1:18pm
hi andy,

I'm in same boat as you, with 150k stuck in there, it really pisses me off. I relied on my introducing broker to check out fxlq, who relied on CFTC's published capitalization report, and NFA's records. NFA should have required
these numbers to be audited and certified by accounting firms, and not just
accept filed numbers.

The whole thing is under injunction, and there is very little we can do. Sueing government and NFA is probably a goodway to try to change their policies and procedures, but not good enough to recover out money... unless you have deep pockets to go after them.

Looks like the government confirmed Jan 28 hearing. robbevans will send out updates on their website. This thing is going to drag on at least another 6 weeks after hearing.

http://www.cftc.gov/customerprotecti...yLLC/index.htm

Receiver Law firm:

http://www.robbevans.com/html/forexlq.html



Quoting forexmgr
Not true,

here is the premise,

1) NFA and CFTC are REQUIRED to verify and fully check any futures, OTC forex broker, FXLQ was on the books for 6 months with 31 million dollars in the CFTC report with NO validation of information.

2) NFA and CFTC had NO compliants against FXLQ since inception

3) NFA had fined SEVERAL other brokers for lack of funding, accounting information.(some shut down later)

4) NFA had 4 days prior to the CFTC court action to freeze funds.

is there a suit, DAMN right, negligence is the sute, I have around 500k in there and another has more than me, when this is over, I will get my clients funds from NFA BUTT, for negligence.

reasons for negligence,
1) not verifying overseas bond.
2) no audit for complience after bond was presented.
3) not insuring bond is in US
4) not allowing withdrawals during that 4 day period(they have no legal authority to stop them).

if you think they are doing thier job, wrong, they are doing what is politically expidient from Futures " big boys" to "thin the herd" as now the retail is getting larger and larger.

Andy <<Cowboy>> Stapleton
www.forexmgr.com
  • #168
  • Jan 20, 2008 4:03am Jan 20, 2008 4:03am
Well from the initial filing FXLQ were 11.3 million dollars in the hole but they seem to have returned 8 million to the USA at the time of the complaint. So probably some firm or FXLQ can come up with the 3 million and we will not lose our money. This is a tough lesson for me and makes me want to place my account in other countries where Forex is highly regulated like Singapore. I have no faith in the USA system at all.

RxPipDaddy
  • #169
  • Jan 20, 2008 4:21am Jan 20, 2008 4:21am
Quoting RxPipDaddy
Well from the initial filing FXLQ were 11.3 million dollars in the hole but they seem to have returned 8 million to the USA at the time of the complaint. So probably some firm or FXLQ can come up with the 3 million and we will not lose our money. This is a tough lesson for me and makes me want to place my account in other countries where Forex is highly regulated like Singapore. I have no faith in the USA system at all.

RxPipDaddy
If I Go Broke Trying Then I Will die happy.
  • #170
  • Jan 20, 2008 7:47am Jan 20, 2008 7:47am
That is why we have changed how we do business, I am writing software to work into 2 major firms, hotspot FX, and Vcap, (cax) these have been primarily Institutional and high end large customers. We are getting out of the MT4 market and bucket shops, since I can write the package to included automated trading and all.

secondly, right now, I am trading with FXDD, thru my BCTS.LLP we have an agreement with them on a group. (email me if you wish more info). but we are telling all the clients as well as myself on the managed account, we take the time to manage our drawdowns, our margins. I have only put 20% of the funds in the account, it allows me to transfer in from my business account within 4hrs (as long as I am prior to 2pm) but the main issue is because of the moves so far this month, we are 2-3k shy of ALL the funds there for that 20% is "gained" revenue. so the base funds that started it back up, are Safe, Secure in the Company account that has absolutly no reference to FXDD.

Lets face it, we are gambling<g> and gamblers in the Forex Market with no real safety net except for our own smarts. so, the Smart thing to do is "play with the houses money".

As a managed account trader, it is my responsibility to manage the account and so I put 20% in the account, my max drawdown previously was 7-12% so I have a bit of cushion. as I gain, each week , I withdrawn the difference, to MY bank account, remaning funds then are "house funds". and from that point any withdrawal is profit.

I have an agreement with my Managed account clients, as to the risk of 20% base, with option to 30 if needed. rest of the funds are in a simple Company bank account , and my banker is willing to give me 4% interest on that once it back to the size I had before.

Andy<<Cowboy>> Stapleton
















Quoting RxPipDaddy
Well from the initial filing FXLQ were 11.3 million dollars in the hole but they seem to have returned 8 million to the USA at the time of the complaint. So probably some firm or FXLQ can come up with the 3 million and we will not lose our money. This is a tough lesson for me and makes me want to place my account in other countries where Forex is highly regulated like Singapore. I have no faith in the USA system at all.

RxPipDaddy
  • #171
  • Jan 20, 2008 8:21am Jan 20, 2008 8:21am
Has anyone, anyone at all heard any new news, rumored or otherwise what might happen at the hearing next Monday???

Has FXLQ come up with the rest of the money needed to satisfy the government? They have had a whole month and a half now to come up with it. It's now or never.

Have there been any whispers of any other firm stepping up to the plate and taking over FXLQ?

What are the chances of it being resolved on the 28th and not having it drag out another 6 weeks, 6 months etc......none and slim and Slim just left town??

For those of you that do not have your money frozen in this situation you cannot imagine how frustrating this is for those of us that do. Yes we have all learned our lesson but still does not make it any easier........
  • #172
  • Edited 5:50pm Jan 26, 2008 3:02pm | Edited 5:50pm
I just happend to check Robb Evans & Associates Website on the chance there might be some news out before the hearing this Monday. Oh there was some news out alright....

Friday afternoon it looks like the FXLQ consented to a "Consent Order Of Preliminary Injuction" and the CFTC believes that FXLQ has failed and will continue to fail at meeting minimum adjusted net capital requirements" Because of this there is no reason for the hearing this Monday. The link to the official document is here: http://www.robbevans.com/pdf/forexlqorder03.pdf

The time line looks something like this:

Feb 4th - Robb Evans & Associates reports all assets and liabilities of FXLQ

Feb 15th - Any response to what Robb Evans & Associates have found in their report must be submitted to the court.

March 31st - FXLQ must either "answer or plead to the complaint"

The 11th Of Never or months and months and months and months from now we get some of our money back.

I am not sure who I am more pissed out....the government for the asinine slow process this is required to take or FXLQ....
  • #173
  • Jan 27, 2008 3:43am Jan 27, 2008 3:43am
Thanks for the update... as grim as it may seems.

So it seems FXLQ has given up any attempt to fight this, now that they can't come up with remaining cash. The question is, how much liability do they really have after being shutdown since November... wouldn't be surprised if robbevans report fxlq liability more than $3millions, or even more than the original figure of $11millions.

So from the wording, FXLQ can "answer" or plead to the complaint by March 31, 2008... "answer" means appeal, etc.. which could push this case further into the future... stalling so they don't have to pay the fines right away. sucks. Hopefully the judge would stop things from dragging out for months on months.

forexedge

Quoting TripTrap
I just happend to check Robb Evans & Associates Website on the chance there might be some news out before the hearing this Monday. Oh there was some news out alright....

Friday afternoon it looks like the FXLQ consented to a "Consent Order Of Preliminary Injuction" and the CFTC believes that FXLQ has failed and will continue to fail at meeting minimum adjusted net capital requirements" Because of this there is no reason for the hearing this Monday. The link to the official document is here: http://www.robbevans.com/pdf/forexlqorder03.pdf

The time line looks something like this:

Feb 4th - Robb Evans & Associates reports all assets and liabilities of FXLQ

Feb 15th - Any response to what Robb Evans & Associates have found in their report must be submitted to the court.

March 31st - FXLQ must either "answer or plead to the complaint"

The 11th Of Never or months and months and months and months from now we get some of our money back.

I am not sure who I am more pissed out....the government for the asinine slow process this is required to take or FXLQ....
  • #174
  • Jan 27, 2008 4:40am Jan 27, 2008 4:40am
This Is Freaking Crazy!! In Plain English When Are We Going To Get This Bread Back?
  • #175
  • Jan 27, 2008 5:01am Jan 27, 2008 5:01am
With the new news out, at this stage of the game does it make it more likely or less likely or impossible for another firm to swoop in and buy FXLQ ???
  • #176
  • Jan 27, 2008 1:40pm Jan 27, 2008 1:40pm
Obviously the thing now is to get in line, once the final funds have been determined, then "let the suits begin"....

that is where I am going next, get out all funds where I can, then sue the remaining bodies....

Andy (cowboy) Stapleton
  • #177
  • Jan 27, 2008 3:38pm Jan 27, 2008 3:38pm
Do you think they will just cut up the remainng funds to creditor first, then the rest to customers? Wonder how they manage priority and funds distribution.


Quoting forexmgr
Obviously the thing now is to get in line, once the final funds have been determined, then "let the suits begin"....

that is where I am going next, get out all funds where I can, then sue the remaining bodies....

Andy (cowboy) Stapleton
  • #178
  • Jan 27, 2008 4:14pm Jan 27, 2008 4:14pm
Quoting forexedge
Do you think they will just cut up the remainng funds to creditor first, then the rest to customers? Wonder how they manage priority and funds distribution.
In the case of bancruptcy, every creditor will have to make a claim to the court, and ultimatly the judge decides who gets what. There are secured creditors, and unsecured creditors. At first the former get payed in full (if possible), the latter gets what ever is left (if anything).

Im not a lawyer and dont know exactly who is secured and who is not, i just know fx retail traders are not, but outstanding wages of employees, for example, are. NFA-fees, the lawyers and the court will probably get payed first too. The whole process can take up a year easily, and FXLQ didnt even file for bancruptcy yet (which they probably will do soon, if they are indeed short of monies, because knowingly delaying the filing of bancrptcy to the harm of creditors is not something the court will look mildly upon).
  • #179
  • Jan 28, 2008 3:15am Jan 28, 2008 3:15am
This is the type of stuff that makes one go postal!!!
  • #180
  • Jan 28, 2008 8:58pm Jan 28, 2008 8:58pm
This is a copy of an email I just recieved from Peter Haas, the CFTC attorney, responding to my email asking him about the possibility of a buyout of FXLQ and also my displeasure in how long this whole process is taking. Read for yourself...

"As you can see from the latest update posted the Receiver will be filing
a report on February 4th, which should provide a considerable amount of
information regarding the finances for the firm. The issues you raise,
such as the possibility of another firm somehow getting involved, are
issues that I feel quite confident are being duly and conscientiously
considered by the receiver, although I cannot say at this time what the
precise outcome will be in this matter.
We hope to be better able to project where things will go once we have
the Receiver's report. Please do not underestimate the amount of work
that can be involved in what essentially is a forensic accounting. The
receiver must account for not only all potential assets, but all
potential debts and liabilities as well.
When the Receiver files a report we will of course have it posted on his
website as well as the Commission's.
Sincerely,
Peter Haas
CFTC"
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