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Feeling Blue About Forex Losses? These Guys Lost 7 Million of Their Clients' Money.

Discussion in 'Scam Alerts' started by Scam Investigations Committee, Apr 28, 2009.

  1. Scam Investigations Committee

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    Capital Blu Management LLC showed their clients solid monthly returns. It looked like a sound investment. The only real warning sign was that the money wasn't in individual accounts, but in a pooled account.

    According to the CFTC, while clients thought they were getting those monthly returns, Capital Blu was really losing over $7 million of the $17 million that has been invested. Millions more are unaccounted for, The owners, Donovan Davis, Jr., Blayne Davis, and Damien Bromfield are charged with running a fraudulent commodity pool. In addition to the charges against those individuals and CapitalBlu, a second company, DD International Holdings, LLC, is also charged. Further, there is an issue of money being illegitimately transferred to Nakano Capital Partners, LP, Nakano Capital Advisors, LLC, and/or Nakano Capital Management, LLC.

    Some of the money was also misused for personal use. Things like luxury cars and private jet charters were paid for with client funds. Some of it was misused for very personal use. $40,000 was spent for a two night party at a “gentlemen's” club. We are shocked at these abuses of client funds and saddened that none of us ever get invited to that sort of party.

    There were about 100 investors involved. That would make the average investment $170,000. 7 million was lost. That cost each investor an average of $70,000. There are millions more unaccounted for.

    We wish to give a very special Thank You to the newest member of the FPA's Review Moderation Team for bringing this to our attention earlier today. She is proving to be a very valuable asset to the Forex Peace Army.

    The FPA has blacklisted CapitalBlu. We hope that most of the missing money can be recovered so that investors can get at least some of their money back.


    Official FPA Scam Finding

    Original CFTC article
     
  2. Abinadi

    Abinadi Recruit

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    Thank you!!

    You folks are providing an important service to the retail forex community. Thanks for shining a strong light to show us where the cockroaches are. And thanks for your efforts and hard work.
     
  3. DWD

    DWD Recruit

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    After hearing about these investigations and all the negative feed back that is on the "reviews and ratings", on just about every broker out there, how does a guy know which broker to use or is it just "buyer beware"???????
     
  4. Pharaoh

    Pharaoh Colonel

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    These guys aren't brokers. They were account managers (or, mis-managers). Pooled accounts are so vulnerable to theft and corruption that I'd never risk one. Individual accounts with your own brokerage at least prevent grand theft by the manager.

    You should read this if you want to consider letting someone else trade your money for you:

    http://www.forexpeacearmy.com/forex...ose-all-your-money-managed-forex-account.html
     
  5. zakix

    zakix Recruit

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    Dear Scam Investigations Committee:
    Thank you so very much for your extraordinary work- RESPECT!
    FPA is the most supportive organisation and we appreciate it so much.
    Re: Capital Blu Management:
    There is a Damien Bromfield runnign the Forex Signals Plus (https://www.forexsignalsplus.com/) that trades accounts.
    Is that the same company and/or person as appear in your report?
    FPA is the most supportive organisation and we appreciate it so much.
     
  6. Pharaoh

    Pharaoh Colonel

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    The Capital Blu review page lists profxalerts.com as another domain of the same company.

    I'm not sure if any other company is run by them or not, but I'll bet one of the scam investigators checks into it.
     
  7. SAMMYFX

    SAMMYFX Corporal

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    Nice Piece

    Thanks for the piece. However I feel that time has really come when more strigent rules should be applied to these management firms.
     
  8. jcalberto

    jcalberto Recruit

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    No Money send

    Hi

    Can you help me?

    I have one account in Finanzasforex, but when they create a broker, Cornerfx, I tranfer my money to cornerfx forex broker, I trade in Corner but they never pay, because they said "we wait funds from finazasforex"

    I think cornerfx is a big scam

    Thank you
     
  9. PistolDave

    PistolDave Corporal

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    Thanks.

    Thanks again to you guys at FPA! Sorry for the investors who lost their money, but without the excellent work by the Scam Investigators it could have been much more.

    Everyone... do what you can to show your appreciation and support for my friends at FPA.

    Keep up the good work, guys.

    PD
     
  10. JPeri

    JPeri Recruit

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    Yes Guys keep up the good work, there are such dishonest people out there....its just so unreal and sad!
     

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