Ponzi Scheme TadawulME / Exential Group:

[pIP5_LeVErAge]

tiT5_LeVErage . Oops piP5_LeVErage I have a question for you, which country's law allow you to share evidence and court proceeding on public forum ? You have funds to file a case and courage to file a case. Take your step, everybody is sharing their ideas here to help each other and nobody have shared the no of any lawyer, why somebody have to prove anything here ? Are you the judge and everybody else here is a lawyer ??

OOOppppsss.. as well. Relax Mr. bardez_monkey seems like you know everything about the law? Are you a ________ firm? OOOpppss again no monkey business here alright! just joking! Well about your question's which country's law allow you to share evidence and court proceeding on public forum? hhmm.. well we can search with Mr. Google.. I hope there is. Maybe we just wait for the verdict of the court it's already in their hands. Peace-Out!

 

[oldtimefxer]

So let's get this straight.
EG had banking restrictions due to moving to a Australian broker.
The banks in Australia said No Thanks because money was being sent to various middle eastern counties.
Some of money is still in Australian brokers account? Not sure someone can answer that. Most regulated financial sector in the world.
EG had a forum and said we need clients to be patient because we don't have banking channels to pay atm.
Some clients said ok we will wait.
Other clients got angry and started complaining to authorities.
Banks didn't want to take on EG cause of complaints to authorities and directly to banks. Other Australian banks dropped EG. So new banking Channels were lost.
But in the meantime people were being paid. Albeit slowly but paid.
EG said just chill everyone and sent email saying they will be refunded in 6/9/12 months. People were still getting paid albeit slowly but paid.
Then DED shut them down on a particular morning they decided to turn up to work.
EG started calling clients saying we will refund in 6/9/12 months.
Some people said yes and others got a lawyer. I was speaking to someone that got a lawyer and they were pretty happy cause ruling said that EG has to pay them in 6-12 months. Now, I'm sorry but isn't that what EG said. Not defending them but ever heard the term Merry-go- round.
Now EG is shut and not trading.
A closed office is definitely unproductive. DED took 2000 AED of everyone. RMs are waiting outside office to answer questions. Owner has not absconded but still in Dubai trying to fix issue. Social media is alive but no real facts.
Money is with brokers but not full amount? Someone else can answer that. Authorities have not yet closed down EG. Court hearing coming soon so they can reopen office or go to jail.
Now people are just waiting.
I'm not sure but if I created a massive Ponzi scheme involving thousands of people I would have skipped town last January.
I'm just trying to make sense of all this with facts. Log

The laws in just about all countries are very simple- to co-mingle client funds you need to be properly licenced as an Investment Firm. EG was not. By taking funds into their account and then 'sending' them to the broker, they were not in compliance with applicable laws.

If a broker found out about this, they would have to freeze the funds and let the authorities deal with it. I doubt if this happened, as there would have been news from the authorities.

the standard way to handle client funds for forex is for each client to have their own account with the licenced forex firm, and the client sends the funds direct to the licenced firm and EG or anyone with a PoA can trade on behalf of the client.

This might have been done a long time ago, but when I had my account the funds went right to EG.

But it looks like there won't be a lot of enforcement here!

OTFxer

 

[Pharaoh]

As you already declared it is a ponzi scheme, can you please tell me what is the ideal life span of the ponzi scheme? as this company is there from more than five years, how is it possible that a company which is a ponzi running all through these years. About the liquidation process it is not written anywhere that the persons who filed the case will get the first so going to court and filling the pockets of lawyers or sitting back and watching won't make any difference. In the MMA forex scenario if you see their latest press release they said that they will give back to all the investors, it is not mentioned that those who filed the case will get some thing.
Even i will be first to file the case if i see any guy who got his capital back from the legal way......

There is no ideal life of a Ponzi scheme. The life depends on how well marketed it is and how soon investors start reporting that it is showing Ponzi-like warning signs.

I strongly suggest you read this entire thread. If you had, this post about long-running Ponzis would have shown how some lasted a very long time:

So, any company that's been around for several years can't be a Ponzi, right?

Wrong. Check some CFTC cases for multi-year Ponzi's and remember that the CFTC is probably the toughest regulator out there::

In the Order, the Court found that, from approximately December 2008 to January 2012, McCullough and Mayhew operated a fraudulent scheme that solicited approximately $2.3 million from at least 11 members of the public to trade leveraged or margined off-exchange foreign currency contracts. The Court also found that McCullough and Mayhew misrepresented their trading record, used some customer funds to repay other customers in the manner of a Ponzi scheme, and misappropriated more than $1.6 million from their customers, including $829,000 for their personal use.

http://www.cftc.gov/PressRoom/PressReleases/7220-15

Washington, DC– The U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement Complaint against DefendantGlen Galemmoof Cincinnati, Ohio, charging him with operating a multi-million dollar Ponzi scheme through his firm,QFC, LLC,from February 18, 2010 through at least July 17, 2013.

http://www.cftc.gov/PressRoom/PressReleases/7001-14

The summary judgment order entered against Gresham on September 9, 2011, found that, from 2004 to 2009, Gresham fraudulently solicited $15,900,245.97 from over 100 customers for the purported purpose of trading forex. According to the order, Gresham lured customers and prospective customers with promises of extraordinary monthly returns ranging from five to 10 percent and perpetuated his scheme by falsely reporting substantial gains to customers. The court further found that Gresham engaged in only limited, unsuccessful forex trading and that Gresham misappropriated the vast majority of customer funds to pay “returns” to other customers and for personal use.

http://www.cftc.gov/PressRoom/PressReleases/6268-12

According to the complaint, since at least 2001 through February 29, 2012, Wilson and AB&C operated a Ponzi scheme, and, as part of the scheme, fraudulently offered contracts of sale of silver, a commodity in interstate commerce. Through their 11-year long scheme, the defendants allegedly fraudulently obtained at least $90.1 million from at least 945 investors for the purchase of silver.

http://www.cftc.gov/PressRoom/PressReleases/6275-12


Here are a few other long-term Ponzi schemes:

A woman known as Dona Branca ran a Ponzi that paid 10% per month for 14 years.

Ronald Rewald has a Ponzi paying 20% annually from 1978 until 1983.

James Paul Lewis, Jr. ran a large Ponzi scheme for about 20 years. In the end, investors lost over a hundred million dollars.

In all of these cases, some investors end up in profit. What is also plain is that 100% of these "profits" came from money that was stolen from other investors.


Any real investment company will not pay large, fixed interest far above banks. Any real investment company will be transparent. Any real investment company will be happy to provide all the evidence needed to show that they are not a Ponzi.

If Exential were a real investment company, they'd have sent someone to this thread to try to explain away some of the many warning signs and to provide some evidence of their trading skills.

If you had read the thread, you would also have seen repeated reassurances from Exential cheerleaders that no one ever put their life savings into Exential since all investors were carefully warned of the possibility of loss - while being promised ludicrously large guaranteed monthly profits.

 

[FX-EX FYI]

Some info for you. I followed the instructions on page 133 and contacted Ellipsys directly. After sending them proof of identity and a letter with a signature to verify, I was able to access my account statments (5 Accounts).

Not to a big surprise the info from Exential was completly wrong compared to what Ellipsys sent me (Account Statements attached). Accounts 4&5 were closed by me in Feb 2016, but when you look through all the statements it shows that Exential just took USD 40000 + outstanding profits from all accounts (which literally depleted most of them as all of them had significant losses since they were opened).
It also is interesting, even I always withdrew my profits on a monthly base, it didn't reflect on any of the statements - money must have come from somewhere else.

Quick summary:

Exential Ellipsys
Account 1(USD 25473) = Account 1 (actual USD 4981,83)
Account 2 (USD 23987) = Account 2 (actual USD 946,97)
Account 3 (USD 23987) = Account 3 (actual USD 946,97)
Account 4 (closed in Feb 2016) = Account 4 (still open and USD 2690,97)
Account 5 (closed in Feb 2016) = Account 5 (still open and USD 2689,97)

You can do with that info whatever you want. I recommend if you got accounts with Ellipsys, try to recover whatever you can.

Regards

 

[oldtimefxer]

Some info for you. I followed the instructions on page 133 and contacted Ellipsys directly. After sending them proof of identity and a letter with a signature to verify, I was able to access my account statments (5 Accounts).

Not to a big surprise the info from Exential was completly wrong compared to what Ellipsys sent me (Account Statements attached). Accounts 4&5 were closed by me in Feb 2016, but when you look through all the statements it shows that Exential just took USD 40000 + outstanding profits from all accounts (which literally depleted most of them as all of them had significant losses since they were opened).
It also is interesting, even I always withdrew my profits on a monthly base, it didn't reflect on any of the statements - money must have come from somewhere else.

Quick summary:

Exential Ellipsys
Account 1(USD 25473) = Account 1 (actual USD 4981,83)
Account 2 (USD 23987) = Account 2 (actual USD 946,97)
Account 3 (USD 23987) = Account 3 (actual USD 946,97)
Account 4 (closed in Feb 2016) = Account 4 (still open and USD 2690,97)
Account 5 (closed in Feb 2016) = Account 5 (still open and USD 2689,97)

You can do with that info whatever you want. I recommend if you got accounts with Ellipsys, try to recover whatever you can.

Regards

I think that this provides very clear insight to what was going on.
As I suspected, they were trading, but were terrible at it.
At one point they might even had made money (even a blind squirrel may find an acorn!), but they lost, and then lost some more- and to keep it going, and probably with the belief that they were just one big trade away getting even, they 'went Ponzi'.

Thanks for sharing!

 

[oldtimefxer]

I think that this provides very clear insight to what was going on.
As I suspected, they were trading, but were terrible at it.
At one point they might even had made money (even a blind squirrel may find an acorn!), but they lost, and then lost some more- and to keep it going, and probably with the belief that they were just one big trade away getting even, they 'went Ponzi'.

Thanks for sharing!

One more thing- NEVER does the trader (EG) have the ability to withdraw client funds, in standard legal FX managed trading.
Who authorized the w/d? Did the PoA allow for it?

 

[FX-EX FYI]

When signing up with EG they always gave a Withdrawal form to be filled with all personal details (name, phone number, bank account etc - however email address had to be masteraccount@exentialgroup.com)
They only thing left blank on that form was date and withdrawal amount. EG claimed they need that so when I want to withdraw my funds on a monthly base they can do it straight away - lesson learnd now ... never again

 

[Fredd]

Some info for you. I followed the instructions on page 133 and contacted Ellipsys directly. After sending them proof of identity and a letter with a signature to verify, I was able to access my account statments (5 Accounts).

Not to a big surprise the info from Exential was completly wrong compared to what Ellipsys sent me (Account Statements attached). Accounts 4&5 were closed by me in Feb 2016, but when you look through all the statements it shows that Exential just took USD 40000 + outstanding profits from all accounts (which literally depleted most of them as all of them had significant losses since they were opened).
It also is interesting, even I always withdrew my profits on a monthly base, it didn't reflect on any of the statements - money must have come from somewhere else.

Quick summary:

Exential Ellipsys
Account 1(USD 25473) = Account 1 (actual USD 4981,83)
Account 2 (USD 23987) = Account 2 (actual USD 946,97)
Account 3 (USD 23987) = Account 3 (actual USD 946,97)
Account 4 (closed in Feb 2016) = Account 4 (still open and USD 2690,97)
Account 5 (closed in Feb 2016) = Account 5 (still open and USD 2689,97)

You can do with that info whatever you want. I recommend if you got accounts with Ellipsys, try to recover whatever you can.

Regards

Would you mind providing us with the email addresses you contacted to get these statements from?

 

[riderX]

Seems like the withdrawals happened in Feb 15 and Feb 18. If im not mistaken, this is only 1 week after they had a meeting with the investors, explaining to them the "banking issues" and assuring them that everything is okay. (this is also the time when Mr. Investorone is actively telling everyone in this forum that its useless to file a case).

Problems started in November - December 2015. The National's news came out in January 2016 and we've been reminding everyone to inform the authorities. Regrets regrets.

 

[FX-EX FYI]

I closed the accounts middle of January 2016. They just plundered all 5 accounts to pay out the 2 I was closing.
email address I used for Ellipsys - admin@elpmarkets.com
more details under "contact" on elpmarkets.com

You need to attach a passport copy and a letter (which you need to sign & scan, sample attached to this post).

email text was like that:


Dear Ellipses Team ,

I would like to request account statements for my accounts listed below:

- Account 1
- Account 2
- Account 3

I would also like to change the registered email address from masteraccount@exentialgroup.com to my private email address .... For verification purpose I have attached a copy of my passport, visa and a verification letter. Should you wish you can contact me for further proof please do so via my mobile ... or my email ...

Thank you for your help and time.
With best regards,

...