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FastBrokers and FXDD case

Discussion in 'Scam Alerts' started by Raimundas, Mar 13, 2012.

  1. Raimundas

    Raimundas Corporal

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    Hello all!
    My father and me have a joint account with FXDD. It was opened through introducing broker FastBrokers and we have a special Rebate agreement with FastBrokers. After ~1 year of successful trading on this account, the FastBrokers company denied to pay rebates. They are motivating by absurd things: "...after carefully reviewing your account they (FXDD - edited) have found out that you are somehow manipulating and exploiting their execution process. They (FXDD - edited) say that you are able to get filled on requotes and other instances where you should not".
    Does anyone can imagine this??? The trader is "manipulating" dealer's execution process... The trader is "getting filled on requotes"... - It's ridiculous. Requote is requote: once the trader gets a requote - it means, the order is not filled. On the other hand - once the trader's order is filled, it means the dealer was able to cover his trade. Now, the FastBrokers company owe us the sum of $1231.25. We cannot reach the rebate payment in good will, thus I'm here...

    After the FastBrokers denied to pay rebates, we have noticed, that the dealer disabled our joint account. I contacted the FXDD's support asking about the reasons to disable the trading account. Initially, FXDD's response was as follows:
    "Please be advised that your account has been archived. If you wish to reactivate your account, please send a request to support@fxdd.com stating that you want to reactivate the account."

    Then I requested to reactivate our (it's a joint account) account. After this, I got different response - see below:
    "Please be advised that the trading account has been disabled by our compliance department. Please call and speak to James Green from our compliance department at your earliest convenience."

    Then I requested for the Mr. James's Green's explanation. After few weeks of silence, at 30th November the sum of $3642.68 vanished additionally without any explanation from the balance of trading account. Finally, on the next day I have got the James's Green's reply:
    "After analyzing all records related to your account, FXDD has determined that you have violated the terms and conditions of your customer agreement. Specifically, you have violated the provision set forth below. As a result of your off market trading activity, FXDD will return your deposited funds to you and disable your account. Any profits attributed to off market trading will be withdrawn from your account. You will be prohibited from trading at the firm in the future."
    Our reply together with James's Green's prior post you can find it on the attached file View attachment Vladimiras_and_Raimundas_Zaksas_reply.pdf . Please, read the James's Green's post in the form of quoted message first and then our reply.
    The next James's Green's reply was very short: "FXDD’s decision is final."

    After this, I have submitted negative review (see the review dated at 2011-12-05) on the FPA FXDD's page: FXDD | FXDD.com reviews and ratings by Forex Peace Army
    Additionally, I've sent all correspondence of FXDD representatives, statements and other proofs to the FPA's investigator Mr. Gerard.
    As I understand the NFA rules, dealer have less than an hour after a trade closes to cancel if it's a pricing issues. Hereby, the FXDD has brutally broken the NFA rules and I decided to fill the complaints on the NFA's ( Contact Us ) and CFTC's ( https://www.cftc.gov/ConsumerProtection/RedressReparations/InformationReportingForm/index.htm ) Websites. As outcome, the NFA started the investigation. The NFA's investigation is not finished yet, but we have won the first our battle: at 17th Feb, 2012 the FXDD dealer has been obligated to refund our profits and the trading account balance has been successfully restored. But it's not the happy-end of this story...

    Rebates are still not paid, the trading account with FXDD is still frozen (we cannot login into it) and suddenly, I've gotten the summons in a civil action against FXDD and the whole bundle of judicial documents today (see the attached file View attachment Gmail - FXDirectDealer.pdf )... This time, the case has involved couple (total number of defendants is 10) unfamiliar defendants. The mentioned documents are full of flaws, lie and slander. I have sent all these documents together with my thoughts and my findings to the FPA's investigator Mr. Gerard.

    Since I'm not lawyer, I'm not sure, if I would be capable to defend myself and my father... Additionally, my English is very poor. Thus, I'm requesting for your help. I think, it's time to stop these FXDD people. What are your thoughts, recommendations and suggestions? What should I do? Do we (me and my father) have the right to get an governmental attorney?

    Best regards,
    Raimundas
     
    #1 Raimundas, Mar 13, 2012
    Last edited: Jun 11, 2012
  2. RahmanSL

    RahmanSL Major

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    Typically, untrustworthy brokers will try the "scare tactic" on clients/ex-clients/forums by threatening to bring a law suit against them.
    The FPA has got quite a numbers of such threats through the years in operation.

    If you have kept documents/records proving your case, and FXDD knows you have these docs/records in your possession, I doubt FXDD will go the distance in a court of law as that would attract attention to their company and their scamming operation.

    Meanwhile, request updates from FPA's Gerard on your case....and do keep this thread/post updated.

    Best of luck!

    =========================

    I took a look at that affidavit purportedly from a KARIM SANDMAN (Legal Assistant) from GARDINER KOCH WEISBERG & WRONA.

    1) Is it normal to mixed up languages in New York?
    The letter heading "FXDirectDealer, LLC v. Iman Jabbari Zahir Abadi, et al Case Number 12 CV 1796 United States District Court Southern District of New York

    2) I though, according to US law, subpoena is issued by a court of law and not from a law firm, and has to be served personally to the defendant and not via e-mail.

    3) If you are not an American citizen, then I doubt a NY court can put you on trial as they will need to request for an extradition order from your country's court of law. This normally applies to terrorist, serial killers, and other major crimes. And I doubt your case falls under any of that category to warrant that extradition order.

    Perhaps some lawyer Traders here can answer the above much2 better than me.
     
    #2 RahmanSL, Mar 13, 2012
    Last edited: Mar 13, 2012
  3. Raimundas

    Raimundas Corporal

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    Yes, I'm not an American citizen. I'm residing in Lithuania (EU) and I have Lithuanian citizenship.
    Regarding your comment, Paragraph 31, "Law and Jurisdiction" of the Customer Agreement reads as follows:
     
  4. RahmanSL

    RahmanSL Major

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    You are not an American citizen! So, where is FXDD's legal standing and jurisdiction in this case against you?

    "(ii) agrees to service of process in any legal proceeding by sending copies thereof by registered or certified mail, if practicable (postage prepaid), or by telex or facsimile to the other party at the address set forth in the Customer Account Application (where service of process is being made by FXDD).."

    I don't see anything mentioned about E-mail/internet correspondence!
    Also, if they send you a "registered or certified mail", that means you will have to sign for receival as proof that the subpoena has been personally served to you as the defendant.

    At this point in time, I believe this is a scare tactic by FXDD and you should forward a copy of that E-mail to the NFA.
    Also, attach a copy of the subpoena to your review posted on Broker's Review to show & warn clients and potential clients of FXDD that they can expect the same treatment from FXDD if they try to withdraw large amount of money from their trading account.
     
  5. Raimundas

    Raimundas Corporal

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    I'm not so sure... I don't think the FXDD would be going to falsify legal documents (see attached file Summons 03-12-12. ).
    Regarding your comment about "withdraw large amount of money": some of defendants in this case have gainings of $50-$80 :)...
     
    #5 Raimundas, Mar 13, 2012
    Last edited: Mar 13, 2012
  6. RahmanSL

    RahmanSL Major

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    You are a citizen of, and reside in Lithuania, and that subpoena is issued by a lower court somewhere in New York.
    To get you to attend that court hearing, that lower court will have to apply to the supreme court for an indictment through international channels (i.e US embassy in Lithuania, acting upon their Supreme court subpoena & order, to apply to your country's supreme court to serve you with a personal notice to be flown/indicted to New York to appear before the court there). This applies to the usd50-80 defendants too!

    And, you think the US Supreme court has nothing else to do but to go after you guys??;)
    No, I don't believe that to be so and that e-mail notice to you guys are a typical "scare tactic" to scare you guys into withdrawing whatever complaints you guys might have filed against FXDD.

    BUT, I am not a Lawyer and most certainly NOT an expert in International Laws, but I think the above are basically true.


    Perhaps now is a good time for FPA's Gerard, AsstModerator, Pharaoh, and even FXDD's representative to jump into this forum???
     
  7. hyper

    hyper Corporal

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    A broker suing a trader? How much are they asking for?

    I had an old account with FXDD that I hadn't used for a while and I could no longer log into. When I asked about it over live chat I was told that it had been archived and that I needed to email them to get it reactivated. So I did email them, but I never received a response and I still can't log in. After reading this I'm definitely not going to want my account to be reactivated.
     
  8. Raimundas

    Raimundas Corporal

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    Yes.

    The total amount in controversy is approximately $200000.00 plus additional compensations (see attached files 1.png and 2.png ).
     

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    #8 Raimundas, Mar 15, 2012
    Last edited: Mar 15, 2012
  9. Pharaoh

    Pharaoh Colonel

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    How exactly are you supposed to be trading off market? This whole thing is insane. The NFA limits misquote claims to 1 hour.

    What does the NFA say to all of this?

    I say file a report with the CFTC and SEC also. Something is not right here.

    I wonder if FXDD will be brave enough to post in this thread.
     
  10. AsstModerator

    AsstModerator FPA Forums and Reviews Admin

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    I'm emailing FXDD right now and inviting them to post in this thread. Gerard showed me the documents Raimundas has emailed in to the FPA. I'm shocked at what I've seen so far. I want to see FXDD's side of this.
     

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