Problem FastBrokers and FXDD case

[Pharaoh]

I keep checking that NFA case summary and there's still nothing new. I'd pay a lot to know what sort of backroom damage-control negotiations FXDD's lawyers are attempting.

HEY FXDD! If you want to regain some trace of respect, strap on a pair, step forward, confess the nature and magnitude of this screwup, and fire those responsible (not just a few carefully selected scapegoats).

 

[BigT1]

Hello FX IT Trader, & Attn: Pharaoh,
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Welcome Recuit: FX IT Trader!
Surely your programming expertise is a valuable asset and will certainly help many here in the future through forensic analysis. Thank you for joining FPA, and my personal welcome to the Army.
You might have misunderstood that in this particular case the US District Court of NY has unequivically agreed with the defendants, that FXDD had indeed filed a spurious counter-suit against its own clients. The court recently dimissed this case on the grounds it was baseless. It was just thrown out of court (much to the dismay of the plaintiff, FXDD)!
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During the course of the investigation following the filing of the suit, and the subsequent defendants' complaints regarding this to the NFA, FXDD was subjected to a special audit by the Regulator and found to be in violation of even more aggregious acts in the conduct of their day-to-day operations than were even contemplated by the defendants in this case.
As a result of this dismissal, not only is FXDD now attempting to quietly make immediate restitution to its egreged clients; but, urgently needs to demonstrate why it should not be held in contempt of the NFA, whose rulings they initially refused to accept and which they openly defied.
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Their Chief Compliance Officer and their Operations Chief have been cited for making blatantly false representations to the NFA. They are in serious jeopardy of losing their licenses to practice (Registration), their personal assets (Fines), and their personal freedom (Jail).
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The wheels of justice turn slowly; but, inexhorably grind forward, 'till all grist is milled.
Stay tuned for further developments.
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Anthony Ingrassia, CTA
NFA ID#: 0278164

 

[mrf1962]

If FXDD loses its license to practice, is it better for us traders to (try to) withdraw our money now while we still can or wait until they have to shut down and *maybe* return our funds. I understand that we traders will just be creditors if they do shut down.

 

[BigT1]

If FXDD loses its license to practice, is it better for us traders to (try to) withdraw our money now while we still can or wait until they have to shut down and *maybe* return our funds. I understand that we traders will just be creditors if they do shut down.

It is true that as with all other forex firms, your risks include the risk of firm default.
I do not personally believe that the impact of this malfeasance will be so great as to cause the entire firm to collapse.
I personally have a small account with them, myself.
There is too much money to be made, for them to self-destruct.
Instead, they are more likely to be fined, several management members forced out, and be held to close scrutiny for years to come.
This will effect their profitability, but not necessarily their viability.
If I had large sums with this firm, I might chose to diversify with transfers to comparable dealers; but if your account balances are reasonable, the risks are manageable.
AI

 

[Raimundas]

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Also, recognize that "The Case being Thrown Out of Court by the Judge" is nowhere near equivalent to the plaintiff "dropping the case".
There is a serious difference.

BigT1, you are not very correct in regards of the above-mentioned citation. Indeed, the Plaintiff dropped this Civil Case: the Plaintiff filled its "Motion for Voluntary Dismissal" and the Judge granted this motion. The Court order was formulated as follows:

Plaintiff's Complaint against Defendant <...> Zaksas is dismissed without fees and costs to either party.

In the means of this Civil Case, I'm neither "winner" nor "loser", because the Case has been dismissed prematurely: there was no trial and no final judgement in this Civil Case. Under presumption of innocence, I'm innocent, because the Plaintiff's allegations and claims has been not substantiated and not proved.

 

[BigT1]

BigT1, you are not very correct in regards of the above-mentioned citation. Indeed, the Plaintiff dropped this Civil Case: the Plaintiff filled its "Motion for Voluntary Dismissal" and the Judge granted this motion. The Court order was formulated as follows:
In the means of this Civil Case, I'm neither "winner" nor "loser", because the Case has been dismissed prematurely: there was no trial and no final judgement in this Civil Case. Under presumption of innocence, I'm innocent, because the Plaintiff's allegations and claims has been not substantiated and not proved.

Thanks for the clarification Raimundas. I did not independently verify the court decision, rather had relied upon your post stating the case was dismissed. Often times, the courts will allow a plaintiff to voluntarily withdraw when they have been told by the judge in chambers that under no uncertain terms they will be ruled against, if they insist on proceeding. A sort of fig leaf.
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Without the sham case to further delay regulatory action FXDD is left defenseless now, regardless of whether the case was dismissed by the judge or voluntarily withdrawn by the complainant.
Inquire of the NFA what will occur next, and thanks for keeping us informed.
AI

 

[Raimundas]

out of interest Raimundas did you incurr any costs associated with the case in NY and if so are these recoverable ?

Of course, I have incurred costs associated with the Civil Case. Total sum of direct expenses (courier service, correspondence, notarial costs, etc.) equals about to $500, but the most valuable spending was my personal time. Time is priceless... During the last half-year this Civil Case had the highest priority amongst my tasks: Since I had no attorney (my status was Pro Se litigant), I was enforced to do legal research of US law, to learn NY SD Court rules, Individual Practices of the Judge, the proceeding procedures, etc. to defend myself and my father.
Unfortunatelly, all these costs are not recoverable. Direct expenses are not recoverable, because the Case has been dismissed prematurely, i.e. I'm not "winner" (see my previous post). My personal time could be compensated only in one way: if it is brought as "moral harm" into the counter-complaint...

 

[BigT1]

. . . I was enforced to do legal research of US law, to learn NY SD Court rules, Individual Practices of the Judge, the proceeding procedures, etc. to defend myself and my father. Unfortunatelly, all these costs are not recoverable. Direct expenses are not recoverable, because the Case has been dismissed prematurely, i.e. I'm not "winner" (see my previous post). My personal time could be compensated only in one way: if it is brought as "moral harm" into the counter-complaint...

You may now consider becoming a "Paralegal" and help others who need representation!
You could file a countersuit for slander, damage to your personal reputation, your costs for defense, and your preparation time, because this was a "Frivilous Lawsuit"; considered sufficient ground under US Law.
Best of luck,
AI

 

[Raimundas]

Their Chief Compliance Officer and their Operations Chief have been cited for making blatantly false representations to the NFA. They are in serious jeopardy of losing their licenses to practice (Registration), their personal assets (Fines), and their personal freedom (Jail).
.
The wheels of justice turn slowly; but, inexhorably grind forward, 'till all grist is milled.
Stay tuned for further developments.

As outcome from this case, now the FXDD has new-appointed Chief Compliance Officer - his name is Mr. Michael O'Reilly...

 

[Raimundas]

This FPA case becomes "FULLY RESOLVED"

Maybe you should get on live chat with FXDD and ask them if they also paid what they owe to FastBrokers.

Recently, I have had a dialog with newly-appointed FXDD's CCO. Under the words of Mr. Michael O'Reilly: "It does not appear that we owe anything to FastBrokers"...
However, the dialog with Mr. Michael O'Reilly has been quite productive - they agreed to make a wire transfer with amount of $1231.25 into my bank account, and also they agreed to re-activate my trading account at FXDD.
The rebates-money isn't in my bank account yet, but I hope, everything is gonna be Ok. Thus, I can affirm with a feeling of release, that now I have no material claims neither against FXDD, nor against FastBrokers. And currently I would call this FPA case as FULLY RESOLVED.