REFCO clients to GAIN capital forex

Discussion in 'Forex Brokers' started by $$$lover, Jul 12, 2006.

  1. $$$lover

    $$$lover

    Awaiting court approval...but do we still have to fill
    -out the court lawsuit papers??....we shall see!:confused:
     
  2. So, does that mean u are getting all of ur money back?
     
  3. $$$lover

    $$$lover

    yes it seems that way............I actually have not read the whole e-mail.....
     
  4. Congrat! Getting the money back is like winning the lottery.
    I got mine out when they are still insisting they have nothing to do with the brokerage division.
     
  5. Not settled yet, but:

    It looks like GAIN will be deposting $150.00 into each account. If your RefcoFX balance was $40.00 or less you may withdraw it. To get anything above $40.00 you must trade with GAIN over a two year period and you will get 25% back every six months based on your trading activity. Those details have not been made public yet.

    My guess they will credit each trade with 1 pip or so. 100K EUR/USD trade = $10.00 credit towards a RefcoFX pre-bankruptcy balance, maybe even a 2 pip credit for $20.00. In my case I would have to make about 9-18 such trades every six months for two years to get my $700.00 back, and deposit additional funds to cover the trades.

    Since they have not made the details public I'm only guessing.
     
  6. That email was just a news bulletin dated June 30, Yahoo Finance published it almost two weeks ago and I believe it's been on the RefcoFX.com site for just as long. Sitrick is a little slow in sending it out to the RefcoFX customers.
     
  7. The details are public.

    See attached.

    Here's an excerpt:

    It's just a quick cut and paste. Sorry about the formatting. Read the PDF around page 8.


    THE PROPOSED TRANSACTION
    The principal terms of the Term Sheet are as follows:2
    16.
    ASSETS: Purchaser will purchase from Seller the Customer List and, to
    the extent FXA can obtain such information, the Marketing List
    (the "Acquired Assets").
    FUNDING OF NEW
    CUSTOMER ACCOUNTS: GAIN will open a foreign exchange customer trading account for
    each individual identified on the Customer List that consents to
    the opening of an account with GAIN within one year after the
    closing of the proposed transaction. Upon receipt of a customer
    consent within the opt-in period, GAIN will fund the newly
    opened GAIN account in an amount equal to the lesser of (i) the
    customer's aggregate FXA account balance or (ii) $150.
    The funds so deposited in the GAIN customer accounts will be
    available to customers with FXA Account Balances of $40 or
    less, without restriction. For customers with FXA Account
    Balances greater than $40, the funds so deposited in the GAIN
    customer accounts will be available to customers upon the
    completion of one round trip lot trade.
    2
    This summary is provided as a convenience only. To the extent the summary differs from the Term
    Sheet, the terms of the Term Sheet shall control. Capitalized terms used but not defined herein have
    the meaning set forth in the Term Sheet.
    For each customer who has an FXA Account Balance in excess
    of its Initial Customer Deposit, GAIN will deposit into such
    customer's account on the six month, one year, eighteen month
    and two year anniversaries of the Trading Start Date a
    Supplemental Deposit equal to 25% of the excess of the
    customers' FXA Account Balance over the Initial Customer
    Deposit, if the customer maintains a customer account at GAIN
    at the end of such period and meets a trading threshold based on
    the following number of average round trip lot trades per month
    during such six month period:
    Account Range ($) Average Round Trip Lots
    Per Month Over Six Month
    Period
    150-500 1.5
    501-1,000 4
    1,001-2,500 7
    2,501-5,000 13
    5,001-10,000 23
    10,001 – 25,000 45
    Alon tp o aen Sadr’ con t m ( u i i b
    lrud r ls r i ‘t ad acute sm lp e y
    it n r t ld
    10 for Mini account equivalent). A customer does not need to
    have satisfied the trading threshold in the previous period to be
    entitled to receive a Supplemental Deposit for a subsequent
    period. Customers with an FXA Account Balance equal to or
    greater than $1,000 that do not qualify for a Supplemental
    Deposit who have traded in a sufficient volume such that they
    would have satisfied the trading threshold if they were in the
    Account Range immediately below their Account Range will
    receive a deposit equal to 10% of the excess of the customers'
    FXA Account Balance over the Initial Customer Deposit. All
    funds required to be deposited under this Section will be
    available to customers within 30 days after the expiration of the
    applicable six month period. Prior to entering into a definite
    agreement, Purchaser and Seller shall agree on the methodology
    for determining trading thresholds for customers with FXA
    Account Balances above $25,000.



     
  8. Those of you that haven't filed your Proof of Claim might want to check out www.refcofxaccountholders.com.

    This will give you a link to a group that has formed a legal fund.

    We have a lawyer now that will be respresenting us in court, and has given us instruction on how to file our Proof of Claims as Secured Creditors instead of unsecured creditors.

    This is going to be an outright battle to get customers money back, and those without a voice in the court room will probally get Gains most excellent offer where you have to trade with them for 2 years to get all your money back in 6 month installments. And only if your trading like a crazy person, and since you will be making so many trades, you will probally have to pay even more money to get your money back.


    Think about it.

    Joint the Legal Fund.

    Get representation.

    Get your POC to the court house by the 17th, or risk loosing it all.
     
  9. That comes to 24 100K trades per six month period instead of my guess of 18. That's less than a pip per trade.