educatedwarrior
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Yes, they are definitely stealing my positions. I had two .26 lots trades short of audusd at .9470 placed 5/12/15:31. Now I have only one .19 position. Interesting.
Dustin Pass's Managed account Scam
- Thread starter educatedwarrior
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- ibfx.com
educatedwarrior
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Interesting, all of a sudden the closed trades automagically appeared in my account history more than one hour after they were closed.
I got to keep an eye on IBFX, can't trust them.
I got to keep an eye on IBFX, can't trust them.
Pharaoh
Brigadier General
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Are you sure Dustin's management people don't still have access to your account? It might be a good idea to change the password, revoke the LPOA, etc. just in case.
If any of your other positions magically resize themselves, try to get screenshots.
Have you asked IBFX if they can explain these position size adjustments that you aren't making?
If any of your other positions magically resize themselves, try to get screenshots.
Have you asked IBFX if they can explain these position size adjustments that you aren't making?
educatedwarrior
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Interbank FX is scamming me
IBFX is scamming me.
I noticed the Dustin Pass managed account closed one of my positions on the AUDUSD on the morning of 5/19/2008. In the evening I looked at my daily statement and noticed it was placed back into my account and the trade is going in the wrong direction. I looked at the trade history and it look like the evidence was erased.
IBFX is cheating me and I need help.
IBFX is scamming me.
I noticed the Dustin Pass managed account closed one of my positions on the AUDUSD on the morning of 5/19/2008. In the evening I looked at my daily statement and noticed it was placed back into my account and the trade is going in the wrong direction. I looked at the trade history and it look like the evidence was erased.
IBFX is cheating me and I need help.
educatedwarrior
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Pharaoh, I have been reviewing forex definitions you have been putting together. The term churning does ring a bell.
I definitely believe Dustin Pass is churning my account. And the sad thing about is I agreed to have it done, without knowing it, in the Limited Power of Attorney form I signed.
Here is your definition of churning.
The deliberate execution of more trades than necessary by an account manager to generate more income (for the account manager, not for the account holder) through extra commissions, cuts of spreads, and/or trading fees while providing little or no additional profits for the account holder.
Here is the fee structure I agreed to pay Dustin Pass
What can I do about this? Anything? I know I made a huge mistake. I wish I would have been involved with the Forex Peace Army Earlier. If I close my account, I realize the 70% loss, and I don't want to do that. However I am considering because 70% is better than 90% when I get a margin call. That would be $45,000 loss out of a $50,000 account.
I definitely believe Dustin Pass is churning my account. And the sad thing about is I agreed to have it done, without knowing it, in the Limited Power of Attorney form I signed.
Here is your definition of churning.
The deliberate execution of more trades than necessary by an account manager to generate more income (for the account manager, not for the account holder) through extra commissions, cuts of spreads, and/or trading fees while providing little or no additional profits for the account holder.
Here is the fee structure I agreed to pay Dustin Pass
- 1 pip per lot for all closed positions
- 50% of any profit made in the month above the hight water mark.
- .1667% monthly management fee
- -The 1 pip per lot pays Dustin Pass money if a trade is good or bad. This is not good motivation for an account manager and gives an account manager ability to churn the account - with 20 clients he could make 20 pips off a bad or good trade. I wish I would have thought this through before I signed the form.
- -Like you said before 50% of the profits is too high a percentage, should be under 25%
- -The monthly management fee pisses me off. It really seems like they are not managing the account. When an account goes from -40% to -70% in one week, do you think someone is managing the account? I used to get emails at the end of each week to know what was going on. Now that the account is in the red by 70%, they do not send out communications, do not answer emails, or phone calls.
What can I do about this? Anything? I know I made a huge mistake. I wish I would have been involved with the Forex Peace Army Earlier. If I close my account, I realize the 70% loss, and I don't want to do that. However I am considering because 70% is better than 90% when I get a margin call. That would be $45,000 loss out of a $50,000 account.
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Pharaoh
Brigadier General
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I see two choices.
1. Give them a choice to waive ALL per-trade and monthly fees until the account goes positive. Let them know that even if they agree to this, any drawdown of more than 10% on the current balance should be dealt with by immediately closing all positions and not trading further without your authorization.
2. Close the account. File complaints with anyone they are registered with. Unfortunately, if this was just incompetence rather than scam, there's not much anyone can do about it. Incompetence doesn't violate any regulations, but you might be able to make a case for gross negligence. You would need to consult a lawyer familiar with forex issues for this.
If they really think they have a serious chance to bring your account back, they should happily agree to #1. Something tells me they won't.
1. Give them a choice to waive ALL per-trade and monthly fees until the account goes positive. Let them know that even if they agree to this, any drawdown of more than 10% on the current balance should be dealt with by immediately closing all positions and not trading further without your authorization.
2. Close the account. File complaints with anyone they are registered with. Unfortunately, if this was just incompetence rather than scam, there's not much anyone can do about it. Incompetence doesn't violate any regulations, but you might be able to make a case for gross negligence. You would need to consult a lawyer familiar with forex issues for this.
If they really think they have a serious chance to bring your account back, they should happily agree to #1. Something tells me they won't.
educatedwarrior
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POA Agreement - no liquidation
I called IBFX to see if I could revoke Power of Attorney for the managed account and have them turn trading over to me. They said they would have to liquidate all positions
Is there anyway I could get them to not liquidate the positions - I would lose all of my margin and loose 70% of the account?
Thanks in advance.
I called IBFX to see if I could revoke Power of Attorney for the managed account and have them turn trading over to me. They said they would have to liquidate all positions
Is there anyway I could get them to not liquidate the positions - I would lose all of my margin and loose 70% of the account?
Thanks in advance.
Pharaoh
Brigadier General
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You mean that the 70% loss is all in open positions?!? Don't these idiots use stoplosses?
I don't know if this will work or not. You could contact the Dustin Pass and tell him NOT to open any additional positions. Assuming he agrees, then at least you have the option to see if any of the big losers turn around (some might, others might not).
I don't know if this will work or not. You could contact the Dustin Pass and tell him NOT to open any additional positions. Assuming he agrees, then at least you have the option to see if any of the big losers turn around (some might, others might not).
educatedwarrior
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Every position I have is long the dollar so it looks like we are waiting for a margin call.
I just got an email from Dustin yesterday. It said he has been suspended from IBFX as a money manager and he is no longer getting paid to manage the account. He said IBFX put in place a policy that he had to be registered with the NFA as a Introducing Broker by the June 30th - that means today!!.
For one this story is not adding up - he said he was suspended then in the same paragraph he said he had until June 30th.
He said IBFX orginally wanted to liquidate all positions in all managed accounts and turn the accounts over to the clients - but he threatened a class action suit.
Now, this is the first I have heard about this. Does this means no one was trading my account for months? It appears that clients were not receiving any communication at all on what was going on. IBFX and Dustin Pass has negliglected to tell clients what was going on. I think they waiting for us to receive margin calls - would you call this gross negligance?
I feel my hands are tied. My account is on the way to receive a magin account, and if I liquidate the account I will take huge losses. I don't know what to do - should I contact NFA, or would this make matters worse?
I just got an email from Dustin yesterday. It said he has been suspended from IBFX as a money manager and he is no longer getting paid to manage the account. He said IBFX put in place a policy that he had to be registered with the NFA as a Introducing Broker by the June 30th - that means today!!.
For one this story is not adding up - he said he was suspended then in the same paragraph he said he had until June 30th.
He said IBFX orginally wanted to liquidate all positions in all managed accounts and turn the accounts over to the clients - but he threatened a class action suit.
Now, this is the first I have heard about this. Does this means no one was trading my account for months? It appears that clients were not receiving any communication at all on what was going on. IBFX and Dustin Pass has negliglected to tell clients what was going on. I think they waiting for us to receive margin calls - would you call this gross negligance?
I feel my hands are tied. My account is on the way to receive a magin account, and if I liquidate the account I will take huge losses. I don't know what to do - should I contact NFA, or would this make matters worse?
