Optionsellers.com goes bust and the apology video is painful to watch

Discussion in 'Wall St. News' started by Sweet Bobby, Nov 17, 2018.

  1. JSOP

    JSOP

    The key is to get him in criminal court so his personal assets can be used to recover the investment losses for his clients. There is no use holding him liable in civil court, there is nothing in the company to pay back the victims as everything is liquidated.
     
    Last edited: Nov 20, 2018
    #231     Nov 20, 2018
  2. Overnight

    Overnight

    I used civil court only as an example of why a judge would rule in favor of plaintiff if said plaintiff sued for breach of contract, as I studied only civil cases in the time I was digging into contract law. I have zero knowledge of how this would go down in a criminal proceeding, as that is a different animal altogether.
     
    Last edited: Nov 20, 2018
    #232     Nov 20, 2018
  3. RedDuke

    RedDuke

    Did he do anything that is not in d doc? I assume all of his clients were getting daily statement. They saw all positions every day. If all Is are dotted he will get out unscathed.
     
    #233     Nov 20, 2018
    MACD likes this.
  4. Overnight

    Overnight

    Probably not, because the Ts were not crossed concomitantly.
     
    #234     Nov 20, 2018
  5. JSOP

    JSOP

    Woo look at the media swooning in, 3 more major publications are publishing the stories now:

    New York Post: https://nypost.com/2018/11/20/tearful-hedgie-apologizes-on-video-for-losing-clients-money/

    Financial Times: https://www.ft.com/content/b7c525f6-ec44-11e8-89c8-d36339d835c0

    Wall Street Journal: https://www.wsj.com/articles/energy...nal-video-to-options-firms-clients-1542709800

    According to Financial Times, FC Stone is not saying anything about debit balance stating that the client accounts were well-collateralized? That's weird. He clearly stated in emails and updates to clients that there are debit balances and they need to pay them. So why's FC Stone's story different here? Are they saying this because they are afraid of being sued for improper handling and monitoring of client accounts of excess margin and not auto-liquidating the positions sooner to avoid larger margin shortfalls? I know Chapman& Albin that's taken on the case is suing FC Stone as well. You never know...

    I don't believe the loss is just $150 million, it's larger than that. Even if the average account size is $1 million, for 290 accounts, the loss is still $290 million. In the video, he said all of the accounts are wiped out. FC Stone has liquidated all of the positions. The loss is definitely larger than $150 million unless he was not investing all of their money deposited with him like you said but then if that's the case, there shouldn't be debit balances. Where did the debit balance come from? Something does not add up. I guess we will know in the upcoming court documents.

    LOL Everybody hates his watch. This is why you hire image consultants I guess when you want to make important public statements like this. God, this is giving Rolex such a bad name.
     
    Last edited: Nov 20, 2018
    #235     Nov 20, 2018
  6. RedDuke

    RedDuke

    My main point is was anything done that was not disclosed in d doc? If not, there is no case. Many people throw here fiduciary responsibility without realizing that CTAs operate under different rules. CTA must execute according to D doc, and if it was done this way, there is really no case.
     
    #236     Nov 20, 2018
  7. JSOP

    JSOP

    Yeah I know but what I am saying is it's no use if the plaintiff wins in this case cuz there is nothing there to claim from optionsellers.com if he's insulated his personal assets completely from the company's and it's optionsellers.com who's the other party on the POA. The way to recover the investment losses is from his personal assets if it can be proven in a criminal court that he's criminally responsible and he's personally benefitted from his criminal activities then there might be some chance of recovery.

    Most likely also, he would need to pay a hefty fine to NFA/CFTC. He's registered as a commodity trading advisor there. Would NFA/CFTC be giving this fine to the victims to compensate for their losses or keep it to themselves? That's another thing to be seen.
     
    #237     Nov 20, 2018
  8. RedDuke

    RedDuke

    This is a very very long shot. Still can not believe they held it all in such an illiquid positions. Insane. Collecting 0.05
     
    #238     Nov 20, 2018
    JSOP likes this.
  9. JSOP

    JSOP

    And with expiration dates so far in the future. The theta must be horrible on these.
     
    #239     Nov 20, 2018
  10. Overnight

    Overnight

    That has come up a few times, the "D doc". What is that? If it is less than 4,000,000 pages, I might be able to scan it over the holiday weekend and find something. If it goes over 4.5 million? Nah. Would be after X-Mas. :)
     
    #240     Nov 20, 2018