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Reallocation of profits and other strange activities

Discussion in 'Scam Alerts' started by Scam Investigations Committee, Jul 16, 2009.

  1. Scam Investigations Committee

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    Reallocation of profits and other strange activities​

    A reviewer left a review on July 12th 2009 about some NFA issues with CFS Capital Management. One of the review moderators sent it over to the Scam Investigations Committee. At first, our investigators weren't sure how serious it was. The NFA has such stringent reporting requirements that it is easy to end up with all sorts of charges due to small technicalities. Then they read the NFA Case Documents.

    On June 30th, 2009, the NFA's Business Conduct Committee has issued an extensive complaint against CFS Capital Management LLC ("CFS"), Brian G. Elrod ("Brian Elrod") and Andrew G. Elrod ("Andrew Elrod"). It's an 18 page document.

    The list of NFA accusations was almost beyond belief. Some of them include...

    Transferring money from profitable customer accounts to accounts that were losing money to cover up losses. This was called reallocation.

    Promising that some money would be protected by being invested in treasury bonds and taking as much as 8 months to purchase these. In some cases, the customer account had lost so much that they would not have been able to buy the government bonds without the “reallocation” of money between accounts belonging to different customers.

    Raising incentive fees on profits without providing contractually required notice.

    Taking over a year to refund improper incentive fees.

    Providing seriously misleading sales material to prospective customers in both paper copies and on the company website.

    Falsely claiming that the NFA had approved its trading program. The NFA does not approve trading programs.

    Providing incorrect information to the NFA when questioned about company activities.


    CFS Capital does have 30 days to respond the the complaint. Considering the severity and number of issues the NFA brought up, the FPA Scam Investigations Committee decided that warning FPA members to avoid this company now was the best course of action.

    If you do have money with CFS Capital, we urge you to contact the NFA and discuss your options with them.

    We wish to thank FPA Reviewer Robert M of Arizona and the FPA's Review Moderation Team for their contributions to this case.


    Official Scam finding against CFSCap

    NFA Case Summary

    NFA Case Document

    FPA Review Page for CFSCap.com


    A copy of the Case Document is attached. You will need to be logged into your personal FPA Forums Account to view the attachment.

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    Attached Files:

    #1 Scam Investigations Committee, Jul 16, 2009
    Lasted edited by : Jul 16, 2009
  2. Pharaoh

    Pharaoh Colonel

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    Not that I'd mind having money reallocated if I was losing, but it must REALLY suck to have them managing an account well and then take out most of the profits to make up losses in other accounts.

    This is supposed to be forex, not Sherwood Forest. :D
     
  3. BaldEagle

    BaldEagle Recruit

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    Broken Link

    Sorry, but the "NFA Case Summary" has a broken link...
    Otherwise, keep up the good work.
    Maybe someday, Forex will be free of land mines.
     
  4. Administrator

    Administrator Just Administrator :-)

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    Broken link fixed.

    Thank you, broken link is fixed now.
     
  5. Abinadi

    Abinadi Recruit

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    Thank you FPA

    This is just a thank you for continuing to do the work to allow yourselves to become the default go-to place on the internet for traders to check out brokers before we give them our money.

    Please keep trying hard to get it right because we don't want anyone unfairly accused but we definitely want the smarmy ones identified and to have a strong light shone on these cockroaches.

    Let's clean up this business and level the playing field for the retail traders!

    Rich
     
  6. Wildpips

    Wildpips Private, 1st Class

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    Million of Thanks to FPA's Scam Investigation Committee.

    Reading this scam, come to mind, that again and again,

    "The size of funds does not help much, if bad luck, interferes with your

    trading." Losing streaks can be turn traders and fund managers into unethical

    practices.

    What a terrible way to earn a living!
     
  7. geoffrey

    geoffrey Private, 1st Class

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    It's A Success Story

    FPA Investigation Committee deserves our commendations. Thanks for the job well done!

    Men in arms, let's spread this news as fast as possible, individually and collectively across the board so that innonent investors wont become prey to the scammers any longer.
     
  8. Hahed1

    Hahed1 Private, 1st Class

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    how could we be sure that the Elrod's first name is not thesame as the biblical nimrod? They could as well be the the reincarnated spirit of bernard madoff! comrade in arms:so the new forex account management order is allocation and reallocation of funds from profitatable accounts to the non profitable to cover up the losses mess!

    I think the Elrods are an 'A' product from the ponzi type school of trading thoughts and administration!

    Well done FPA investigators and all invoved in the research, reviews and investigations! you all made the community an encouraging place to live its survival!

    kudos!
     
  9. SAMMYFX

    SAMMYFX Corporal

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    I'm afraid that there are still many Madoffs around. May God help FPA to uncover them!
     
  10. yurps

    yurps Private, 1st Class

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    FPA did nothing except tell us about a case that the NFA is dealing with.
     

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