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Problem FastBrokers and FXDD case

I am having an issue with a company
How exactly are you supposed to be trading off market? This whole thing is insane.
Under the words of FXDD's representative (Mr. James E. Green): "Each of the Defendants used a computer-generated script to manipulate FXDD's trading system. The computer-generated script was and is designed to inject fraudulent prices into the FXDD trading platform, resulting in guaranteed profits on every transaction."
It's not true! At least two of the Defendants (me and my father) did not used any scripts. It means, not "each". I'm familiar with all the features of "MetaTrader 4" terminal (automated trading, programmed Expert Advisors, custom indicators, etc.), but I've never seen nor even heard about Script, that is mentioned on the judicial documents. I cannot imagine, how is it technically possible? Do You know anything about existence of such Script's and fraudulent prices' injection?
Today, my father requested the MetaQuotes company to explain about technical possibilities of existence of such Script's on Trader's (MT4 terminal's) side.
Regarding Mr. James E. Green's words "guaranteed profits on every transaction": This citation shows, that Mr. James E. Green is not in touch with trading statistic on the our joint (my father + me) account #593023. 49.79% of all trades on that trading account are the losing trades and only 50.21% are the winning ones.

What does the NFA say to all of this?
NFA's investigation is not completed yet and they cannot reveal details of that investigation. However, NFA have obligated the dealer to refund my profits, that was stolen. As result, balance of the trading account was restored at 17th Feb, 2012.
 
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What does the NFA say to all of this?
Additionally to my previous post: NFA categorically denies NFA advised FXDD to apply to a court of law for redress. Thus, only the FXDD is answerable for this Civil action against us.
 
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The subpoena was prepared (but not signed) by a Mr. Karim Sandman, a Legal Assistant (purportedly) to Mr. James B. Koch.

Perhaps you should e-mail Mr. Koch at Email: Questions@gkwwlaw.com, to verify authenticity of the subpoena.
Unsigned letters, especially of a legal matter, always raises the questionable authenticity of the letter & sender.

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That statement in the affidavit "Each of the Defendants used a computer-generated script to manipulate FXDD's trading system. The computer-generated script was and is designed to inject fraudulent prices into the FXDD trading platform, resulting in guaranteed profits on every transaction." does open up a large hole in their claims against you & your father.

What would "guaranteed profits on every transaction" constitute?
Since the words "on every transaction" have been used, that would be taken to be 100% profits on every trades but, as you said, since your trading account has only 50.21% winning trades, that charge of using that "computer-generated script" cannot hold true.

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I am fairly convinced that the subpoena is a scare tactic employed by FXDD to intimidate you all into withdrawing the NFA charges against their company, but, as AssistantModerator has posted, he has already invited FXDD's representative for a clearer explanation.

Hopefully, FXDD rep will accept the invitation and clear up this matter soon as it is in their best interest to do so since if other FXDD clients were to read this case, they would wonder whether they will face the same treatment in the future. And potential clients will of course hesitate to have FXDD as a trusted broker.

All the best in your case, and do keep us posted.
 
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Paper documents

At Friday (16th Mar, 2012) we have been served by courier service and now we have all paper documents. These are all the same I was E-mailed to Gerard. The time to respond starts from that date...
Can you recommend a comprehensive Internet resource about US Law?
 
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That ends the question about whether the summons was served properly. Time to lawyer up.

I think FXDD is going to have a hard time proving their claim in a court of law. I've seen brokers make claims like this in the past (as an excuse to confiscate traders profits), but each time they claim the flaw in MetaTrader's backend has been repaired. This sounds to me like a last ditch method to try to grab money from traders that are too profitable.

Can anyone here imagine a MetaQuotes employee coming in as an expert witness to publicly proclaim that the software has a flaw that allows a client to "inject" a price and force the broker to accept it? ;)

Even if that happens, FXDD would still need to prove that Raimundas used this method.

The much more likely explanation in my opinion is that Raimundas made too much profit and a handful of trades were one or two pips off due to pricing errors. Since the NFA now restricts taking money from the client for pricing errors after a very short period of time, it sounds to me like FXDD decided to try to do an end run around NFA regulations by attempting a legal blitz to get clients to surrender some or all of their profits. If so, this is a shameful, unethical, and probably illegal action.
 
Ok, so since the subpoena has been couriered to defendant, that can be taken as genuine documents.

However, I still very much question the legality & legal jurisdiction of this case.

I am not sure, but for a local US court to grant trial to an alleged crime, doesn't the alleged crime has to have been allegedly committed in that district/county and country?

And since the defendant traded/allegedly committed the alleged crime from his home in Lithuania (EU), which is not on US soil, does that US lower court has the power & jurisdiction to put that alleged crime on trial?

I think the international laws governing cyber crimes is more appropriate here than the US local laws and as such, that US lower court cannot, and should not, take on this case.

I hope the FPA will come up with some more information on this case as it stinks of a dirty & lowdown scare tactic employed by a broker to intimidate their clients.

And I think existing FXDD's clients and would be clients follow and take this case with interest as that broker can exert the same screw on them too.
 
They can claim that the crime was committed against their servers no matter where the action originated from. Since the servers are in the USA and the money is in a US Bank, they've got what looks like a plausible jurisdiction argument.

On the other hand, if you can grab even a local lawyer (you need a US one to really fight this), that person can try to get an extension based on the need to examine jurisdiction and to prepare a counter argument.

If you can get together with others having this issue, my best suggestion is to share a US lawyer, answer their claim, and counter-sue for all the money, plus costs of recovering it.

I'd love to see FXDD showing in court how anyone "forced" them to accept invalid prices. If one trader could do that, the question that could come up is whether or not a trader could change prices for others? i.e. Are FXDD's prices truly trustworthy or not?

It might be worth asking the NFA if they are aware of ANY method for a trader to force MT4 to accept fake prices. If you can get a direct answer (not an easy thing to get from any regulatory agency), I'll bet it will be "NO".
 
There is also a FXDD Malta...so, very possibly they have servers in many countries.

I went into FXDD site and was swarmed with pop-ups wishing to set "cookies"...I quite literally have to superfast click "denied" before I could even get out of their site.



P/S: Anybody can PM me how to "cheat" & "fool" broker's server into accepting "invalid prices"? :p
 
If one trader could do that, the question that could come up is whether or not a trader could change prices for others? i.e. Are FXDD's prices truly trustworthy or not?
All the clients connected to the same MT4 server have the same prices. If there are some price manipulations, all the clients get manipulated prices.
 
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