FWTG - shut down!

Those affected by this situation at FutureWise will be meeting at the following location.

Yadayada

I know this is a tough situation for a lot of people. So, we just need to band together and sort through it all.

Please check out the above link as info there may assist in enlightment of the picture of what happened.

 

In a case of fraud, which it appears FWTG may have been, then you may have some risk. However, if you are dealing with a gauranteed IB of an established firms you have a mutliple layers of protection. One difference between stocks and futures is that all accounts must be segragated from that of the firm, so if something happens to the firm, the accounts are not going to be effected. In the case of the equities, you would be protected up to $100,000 by SIPC even in the event of fraud..so it's a bit of a trade-off I guess.

Brandon

 

From another thread in November.

--- Question: ---
Stock accounts are protected by the SIPC. What kind of assurance(s) are there to protect account holders if you should decide that your firms assets have reached a level that makes you comfortable wiring out the balance to the Cayman Islands and living your life as a fugitive?

--- T. Snively: ---
CCI is a regsistered FCM. Clearing firms contribute to a fund that exists to reimburse clients who lost money due to a registered FCMs malfeasance. They have never had to pay out as far as I know. However, there is really nothing stopping me, or anyone else, from stealing the money and leaving town.


:eek:

 

"offer $1,000 margins and FREE level II futures platform or $4/side."

I have been told that this group or more appropriatley Proptrader, has L2...yet for the life of me I cant find the details of L2 any their site or the site you link you have posted.

I want to see a screen shot of this mythical L2....

Scott

 

I got out of FWTG just in time. I was having problems with the software and as a way of cutting my losses I asked for my money back and it was promptly refunded.

I can say nothing negative about Todd, I spoke to him several times and he was always cordial. Maybe he was in over his head, who knows?

I had no problem getting my money back and I only heard of the shutdown on this thread.

I must say that from now on I am sticking with the established brokers like IB. They might have problems but who does not?

My heart goes out to the full time traders whose funds are tied up in the red tape.

 

I agree. Putting your funds in the hands of established =clearing= FCMs makes this sort of crap much less likely. In fact, it reduces the probability to just about zero.

 

oneway

here is a link to our demo for the L2: http://apexfutures.com/prop.htm

 

COMMODITY TRADER AND TWO MICHIGAN COMPANIES CHARGED WITH $2.9 MILLION FRAUD; GOVERNMENT ALLEGES FICTITIOUS TRADING

Federal Court Freezes Assets and Bars the Destruction of Books and Records.

WASHINGTON D.C. - The Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint in federal court on February 8, 2002, against Todd J. Snively of Northville, Michigan, Commodity Consultant International, Inc. (CCI) and FutureWise Trading Group, Inc. (Futurewise). The complaint charges defendants with fraudulently operating an internet-based trading platform which purportedly permitted investors to place orders for commodity futures contracts through CCI and Futurewise and alleges that defendants misappropriated investors’ funds. According to the complaint, defendants solicited and accepted at least $2.9 million from at least 60 people.

Also, on February 8, 2002, the Honorable Paul V. Gadola of the U.S. District Court for the Eastern District of Michigan entered a statutory restraining order by consent against the defendants, freezing their assets, preventing the destruction or alteration of their books and records, and granting CFTC staff immediate access to those records.

The CFTC complaint alleges that, since at least June 2001 and continuing through the present, Snively, CCI, and FutureWise, all of whom are CFTC registrants, solicited and accepted at least $2.9 million from at least 60 members of the general public, for the purported purpose of trading commodity futures. The complaint alleges that investors could either trade for themselves on the platform or place trades through CCI and FutureWise. According to the complaint, however, no trading occurred on behalf of investors. Instead, the complaint alleges, the defendants misappropriated some of the investors’ funds for their own use. The complaint further alleges that defendants induced investors to maintain and add to their investments by providing account statements over the Internet that reflected investors’ purportedly profitable futures trading.

CFTC Chairman James Newsome said:

“Investor protection and market integrity are the Commission’s primary objectives. In this case, our Chicago enforcement staff, in coordination with the National Futures Association, moved swiftly to protect investor funds and halt this alleged fraudulent activity. This is a good example of how the Commission works together with a front-line regulator to produce positive results. I will continue to promote the use of all of our regulatory authority to make sure that we uproot and prosecute all fraudulent activity in the futures markets.”
In its continuing litigation against the defendants, the CFTC is seeking preliminary and permanent injunctive relief, an accounting, restitution to customers, disgorgement of ill-gotten gains, and civil monetary penalties of not more than the higher of $120,000 for each violation or triple the monetary gain to Defendants, among other remedial relief. A hearing has been scheduled for Wednesday, March 6, 2002, before Judge Paul V. Gadola on the CFTC’s motion for preliminary injunction.

The National Futures Association (NFA), a futures industry self-regulatory organization, provided substantial assistance to the CFTC in this matter. Public inquiries can be directed to the CFTC at fwtgcomplaints@cftc.gov or to the NFA at 800-621-3570.

To obtain a copy of the complaint and order, go to the following Internet address: http://www.cftc.gov.

 

Has anyone heard the latest on this? When are people going to be getting their money back?

 

NFA Online News

Notice to Customers
Attention to Customers of Commodity Consultants International, Inc. and Futurewise Trading Group, Inc.
As a public service announcement, NFA would like to announce that in the case of Commodity Futures Trading Commission vs. Snively (case number 02-40041), the hearing originally set for March 6, 2002 has been postponed. Additionally, another hearing date has not been set yet. When more information is available and public, updates will be provided.

http://www.nfa.futures.org/