http://barnhardt.biz/
LAUREN BRINATI & NFA'S GROSS FOREX NEGLIGENCE
POSTED BY ANN BARNHARDT - JULY 13, AD 2012 10:25 AM MST
Oh, the chickens are coming home to roost now. I have been willing to speak out against the NFA and their criminality because I am totally out of the business, and the NFA can't threaten me in any way any longer. Not so before I shut my firm down, and for anyone else involved in the futures industry. The NFA is the gatekeeper to the entire industry. Anyone who wants to work in the futures or options industry MUST be licensed by the NFA, and the NFA can, at any time, pull a person's license or otherwise harass NFA members into insolvency with ZERO recourse or redress - and they do. When I call them a mafia, I'm not being flip. In fact, a reader sent me an email detailing how the NFA can and should be tried under CIVIL RICO statutes. They are indeed a criminal, racketeering body.It now seems that people have had enough, and are now willing to speak out against the NFA. Here is a letter sent to me last night by a FOREX trader (whom I have checked out - this person is definitely for real), outlining their experience with the NFA, and specifically Lauren Brinati, which confirms and echoes everything I have said.
This person is willing to speak to the press. Any reporters who want to pursue what you read here should email me contact info, which I will then forward to this FOREX professional.
This person is willing to speak to the press. Any reporters who want to pursue what you read here should email me contact info, which I will then forward to this FOREX professional.
Hi Ann,After reading your post on the Lauren Brinati antics, I just feel compelled to tell you my personal experience with her, the NFA, and the CFTC. It is a long story, but I will try to keep it short unless you request the full feature-length saga, but trust me, I have all of the emails to verify every word of my story.I have been a forex trader since the year 2000 and at the time of the Farm Bill which included the mandate for Retail Forex to become regulated by the CFTC (and thus the NFA) I was a Referring Broker for FXCM (a Forex Brokerage).Problem #1: The congressional mandate for retail forex to be regulated had NO BUSINESS being stuck on the back end of the Farm Bill, it was just a way to get it passed when NO member of Congress understood what they were doing or what they were asking for as "regulation" as NONE of them understood anything about the industry (it was just a pet peeve of one congressman who had a personal vendetta and score to settle due to a trading loss suffered by one of his friends.)Problem #2: Anyone who knows anything at all about retail forex understands that it is far more similar to stock trading than futures trading, and it should have been put under the authority of the SEC to begin with - not the CFTC, but since the idiots in congress thought that "forex futures contracts" were the sum total of everything forex, and since the CFTC already regulated forex futures (a commodity) this is what we got.Anyway, the CFTC and NFA were really pissed off when they were told that they would have to regulate retail forex - it was not a job they wanted. Their first responsibility was to "study" the industry so that they could then develop regulations for it. I contacted both the CFTC and NFA multiple times during the first days, and weeks (and months) after the Farm Bill mandate to offer my services, expertise, and experiences during their exploratory period as I knew (probably) more about the retail forex industry (and the problems that plagued it) than almost anyone. They never wanted to hear anything I had to say.After they published the "results" of their study, I just could not believe what I was reading. It was the most ridiculous document I have ever seen - filled with "facts" that were simply wrong, logic sequences that were illogical and absurd, and conclusions that sounded like something prepared by a 2nd grader. And most shocking was the list of "industry experts" they had used to gather their information from. It was none-other-than 17 of the most flagrantly abusive forex brokers! Amazing.... They had never even tried to gather information from actual traders (who were the people they new regulations were supposed to protect!) To make the story short - what they had done was essentially try to fit retail forex into the box they already had for forex futures instead of trying to create rules and regulations that would make sense for retail forex, and then incorporate all of the brokers' abusive tactics into regulations (thus now ASSURING that the brokers would have the advantage over the traders!!)After reading their report, and the direction they were going to take the new rules and regulations, I again contacted both the CFTC and NFA with a long email explaining each point in detail on things they were wrong about, what the correct path should be to protect traders and make for a better trading environment, etc. Again - they didn't want to hear it. In one telephone call with the lovely Lauren Brinati, I introduced myself (again) to her and ask for the opportunity to explain a "traders perspective" on some of the issues, when she literally started SCREAMING at me, saying, "Who do you think you are? Why do you think you know more than the NFA?" and on and on - it was CRAZY TALK and totally bizarre.When they had the "public comment period" before the new rules and regulations were finalized - there were over 9,000 public comments posted. I read EVERY SINGLE ONE. Of the 9,000+ comments there were maybe 25 that were supportive of the new rules and the rest were not. And yet, they still passed the rules EXACTLY as originally written... They HAVE THEIR OWN AGENDA and pay no attention to the people they are supposed to be serving. What a joke!I have NO DOUBT that the NFA is corrupt and the CFTC - if not a part of the corruption is DERELICT in their duty by letting the NFA run their phoney audits and assults against legitimate IBs, CTAs and CPOs.I have NO DOUBT that the NFA is in partnership with the large forex brokers to run all the smaller companies out of business. It is so obvious that it isn't even funny. It PROTECTS the forex brokers that CHEAT and created trading rules that made it MORE difficult for traders to manage their accounts and make profits, and the CFTC pulled the grand daddy of all when it came time for the retail forex accounts to be moved back to the United States - by changing their "interpretation" of their own rules AFTER 5 PM on the day of the deadline (so that traders had NO WAY of protecting their accounts). This shenanigan cost me over $250,000 in a margin call.And - you are right about Miss Lauren - SHE DOESN'T KNOW SQUAT ABOUT ANYTHING regarding trading forex, or futures, or commodities. She, like ALL of her associates in the NFA should be in prison for FRAUD for how they are running that organization.I would be happy to join in a legal action against them. Please let me know what develops with that.Thanks,
M
and....
http://www.zerohedge.com/news/pfg-head-arrested
PFG Head Arrested
UPDATE: Suicide note details added:
- *WASENDORF SAID HE USED PHOTOSHOP, SCANNER IN FORGERY, U.S. SAYS
- *WASENDORF SAID CHOICE WAS GO OUT OF BUSINESS OR CHEAT: U.S.
- *WASENDORF'S STATEMENTS MADE IN SUICIDE NOTE, PROSECUTORS SAY
- *PEREGRINE'S WASENDORF SAID `I HAVE COMMITTED FRAUD,' U.S. SAYS
While unable to successfully kill himself, it appears the CEO of PFGBest is even less successful at evading the police. As just reported,
- *PFGBEST'S WASENDORF ARRESTED IN IOWA
- *FED PROSECUTORS CHARGE IOWA FIRM CEO W/ LYING TO REGULATORS:AP
- *PEREGRINE CHIEF WASENDORF CHARGED BY FEDERAL PROSECUTORS (with making false statements to the CFTC)
- *WASENDORF FRAUD AT PEREGRINE LASTED 20 YEARS, PROSECUTORS SAY
What is probably more concerning to him now is the fact that he was not a Presidential bundler - as the Big House is definitely calling...
My comment below.....
and now we know this scam was both Madoffesque for duration of time and MF Globalesque for ripoffs of customer accounts....
http://www.silverdoctors.com/jb-slear-on-pfg-losses-why-i-love-goldsilverintegrity-and-jim-sinclair/
JB Slear on PFG Losses: Why I Love Gold/Silver/Integrity and Jim Sinclair
JB Slear updates SD readers on MFG 2.0 (PFG). Fort Wealth IB’s accounts remain frozen, and all of their positions were liquidated by force at the authorization of Jefferies at massive discounts and losses. Not only were they liquidated by force, but positions were liquidated at 33% below the settling price given for contracts!
Slear states that the $200 million segregated client theft by PFG will result in every single trader being left out of the precious metals market.
Paper markets are still getting that European support and as to why?? Well, it’s truly simple, the banks are continuing to support their-selves and their paradigm. We (the entire GIB/IB brokerages that traded thru PFG are left out to hang, because of some events not of our doing. Every person at PFG, that has been picking up the phone and helping to answer questions needs to be commended. Many realized that their jobs were gone the day the NFA admitted its oversight. But to find the souls that understand the importance of communications when it comes to other people’s money and to be there to offer up what they know is real important. We give these solid souls a deep bow of gratitude. We are truly thankful that Jim Sinclair told his readers to take delivery thru our firm several years ago. Fort Wealth made sure to follow Jim’s suggestions to the letter. That is, to make sure no one else holds the Gold/Silver for the clients.
http://www.otcmarkets.com/stock/STLK/company-info
( note who the auditor for this shady outfit is..... same auditor as for PFG Best ..... )
Business Description
STL Marketing Group is committed to brand movement through creative and design services, packaging and supply solutions. The core business unit is Green Tree Packaging. Green Tree Packaging is dedicated to packaging solutions that protect more than just your product. We provide sustainable packaging solutions to help protect the environment for future generations. We offer eco-friendly alternatives to traditional packaging supplies and strive to educate consumers, employees and suppliers on red...
* * *
Financial Reporting/Disclosure
| Reporting Status | U.S. Registered & Reporting: Alternative Reporting Standard Deregistered a/o Jun 14, 2001 |
| Audited Financials | Not Available |
| Latest Report | Nov 17, 2009 Quarterly Report |
| Regulatory Agency | Not Available |
| CIK | 0001080291 |
| Fiscal Year End | 12/31 |
| OTC Market Tier | OTC Pink No Information |
STLK Security Details
Share Structure
| Market Value1 | $69,411 | a/o Jul 11, 2012 |
| Shares Outstanding | 18,759,792 | a/o Jan 07, 2010 |
| Float | 17,614,297 | a/o Jan 07, 2010 |
| Authorized Shares | 500,000,000 | a/o Jan 07, 2010 |
| Par Value | 0.001 |
Shareholders
| Shareholders of Record | 307 | a/o Oct 26, 2009 |
Security Notes
|
Short Selling Data
| Short Interest | 0 (-100%) Apr 29, 2011 |
| Significant Failures to Deliver | No |
Transfer Agent(s)
| First American Stock Transfer, Inc. |
Service Providers
Auditor/Accountanthttp://articles.chicagotribune.com/2012-07-12/business/sns-rt-us-broker-pfgbest-auditorbre86b02n-20120711_1_attempt-on-monday-morning-auditor-futures-broker
( Reminds me of Madoff's auditor..... )
http://barnhardt.biz/
PFG ISN'T THE FIRST HUGE NFA AUDITING "OVERSIGHT"
POSTED BY ANN BARNHARDT - JULY 11, AD 2012 2:16 PM MST
So you think that PFGBest is the first time that the NFA has inexplicably "missed" hundreds of millions of dollars from a non-clearing FCM that they had under their auditing auspices?Oh, you would be very, very wrong. Let me tell you the tale of Sentinel Management Group, a non-clearing FCM that operated as a hedge fund for other FCMs, that was a Ponzi scheme which when it finally collapsed in 2007, was "missing" $500 million.
The NFA's own report on Sentinel, for which the NFA was the auditing body, found:
"Sentinel failed to maintain adequate books and records, including records to demonstrate the location" of some accounts.
Huh. How is that possible, given that the NFA auditors had signed off on every audit ever performed of Sentinel, since the NFA was itself the auditing body?
Apparently, just as with PFGBest, the NFA was grossly, grossly negligent in its due diligence - almost certainly intentionally - and then mid-level robosigners who were neither competent nor possessing any real knowledge of Sentinel's books were told to sign off on the Sentinel audits.
Anecdotally, I have been told by someone familiar with the situation that when the investing FCMs who had their money stolen by Sentinel pressed the NFA to explain how they could have possibly missed half a billion dollars in missing funds, the NFA's reply was that they didn't really understand the complexities of the documentation and investments that they were shown, and thus just signed off on the audit trusting that everything was okay.
Uh-huh. Maybe like how no one really understood all of those "complex" reverse repos that Corzine had over at MF Global? Because rule number one in forensic accounting and auditing is: If you don't understand something, just sign off on it anyway. Especially if the CEO of the firm is either a crony of the ruling political regime, ex-Goldman CEO and next in line to SECTREAS or sits on the board of the self-regulatory body itself.
The NFA is a criminal organization. It is a mafia. And it is powerful. How do you think they managed to completely hush-up the Sentinel fiasco? Let me remind you that back in 2007, $500 million was an ENORMOUS amount of money. And yet I'm betting this is the first many of you have heard about this.
The NFA needs to be shut down, disbanded, and many of the upper management need to be tried under the RICO statutes. These people have willfully destroyed people's lives and businesses in service to their cosa nostra / political cadre, and many times have done it for sport.
I can promise you that PFGBest is not the only instance of the NFA overlooking grossly underfunded FCMs that are under their auditing auspices. There is NEVER just one cockroach.
The NFA's own report on Sentinel, for which the NFA was the auditing body, found:
"Sentinel failed to maintain adequate books and records, including records to demonstrate the location" of some accounts.
Huh. How is that possible, given that the NFA auditors had signed off on every audit ever performed of Sentinel, since the NFA was itself the auditing body?
Apparently, just as with PFGBest, the NFA was grossly, grossly negligent in its due diligence - almost certainly intentionally - and then mid-level robosigners who were neither competent nor possessing any real knowledge of Sentinel's books were told to sign off on the Sentinel audits.
Anecdotally, I have been told by someone familiar with the situation that when the investing FCMs who had their money stolen by Sentinel pressed the NFA to explain how they could have possibly missed half a billion dollars in missing funds, the NFA's reply was that they didn't really understand the complexities of the documentation and investments that they were shown, and thus just signed off on the audit trusting that everything was okay.
Uh-huh. Maybe like how no one really understood all of those "complex" reverse repos that Corzine had over at MF Global? Because rule number one in forensic accounting and auditing is: If you don't understand something, just sign off on it anyway. Especially if the CEO of the firm is either a crony of the ruling political regime, ex-Goldman CEO and next in line to SECTREAS or sits on the board of the self-regulatory body itself.
The NFA is a criminal organization. It is a mafia. And it is powerful. How do you think they managed to completely hush-up the Sentinel fiasco? Let me remind you that back in 2007, $500 million was an ENORMOUS amount of money. And yet I'm betting this is the first many of you have heard about this.
The NFA needs to be shut down, disbanded, and many of the upper management need to be tried under the RICO statutes. These people have willfully destroyed people's lives and businesses in service to their cosa nostra / political cadre, and many times have done it for sport.
I can promise you that PFGBest is not the only instance of the NFA overlooking grossly underfunded FCMs that are under their auditing auspices. There is NEVER just one cockroach.
My advice? The PFGBest customers need to form a class, and quickly. Sue the NFA and NFA management personally for fraud. There is a provable history of GROSS NEGLIGENCE by the NFA with regards to their auditing oversight.
A few citation URLs for you to cut and paste into your browser. Happy reading:
http://en.wikipedia.org/wiki/Sentinel_Management_Group#cite_note-globe-3
http://www.fbi.gov/chicago/press-releases/2012/ceo-and-head-trader-of-bankrupt-sentinel-management-indicted-in-alleged-500-million-fraud-scheme-prior-to-firms-2007-collapse
http://seekingalpha.com/article/45105-nfa-drops-sentinel-ball-sec-picks-up-sentinel-ball
http://online.barrons.com/article/SB118860706640815325.html
A few citation URLs for you to cut and paste into your browser. Happy reading:
http://en.wikipedia.org/wiki/Sentinel_Management_Group#cite_note-globe-3
http://www.fbi.gov/chicago/press-releases/2012/ceo-and-head-trader-of-bankrupt-sentinel-management-indicted-in-alleged-500-million-fraud-scheme-prior-to-firms-2007-collapse
http://seekingalpha.com/article/45105-nfa-drops-sentinel-ball-sec-picks-up-sentinel-ball
http://online.barrons.com/article/SB118860706640815325.html
and.....
I HAVE INFO FOR ANYONE WHO WANTS TO SUE THE NFA
POSTED BY ANN BARNHARDT - JULY 10, AD 2012 4:59 PM MST
The National Futures Association needs to be sued into the ground by all of the PFGBest customers, as well as many of the NFA employees PERSONALLY.In 2010 I was audited by the NFA, which is a bi-annual (every two years) occurrence for Independent Introducing Brokers. The NFA tried to tell me that a commercial hedge broker could not execute more than one round-turn per client per cash inventory cycle.
Yes, I kid you not. They actually tried to make that argument. As in a feedlot or rancher who is hedged with short futures and has a big open profit on the hedge MAY NOT exit that short futures and buy puts in order to manage that position. Or, if a hedger has an option position that has a big open profit, the hedger may NOT roll that option position into a different strike price in order to capture equity and protect against time value erosion.
The NFA actually tried to argue that it is against the law for a hedge broker to transact more than one round-turn per cash commodity inventory cycle. Again, I can't make this crap up. I have all of their stunningly ignorant letters to prove all of this.
But here is the point, and anyone out there who is a PFGBest customer or an attorney representing a PFGBest customer needs to listen up:
The same "Senior Compliance Manager" who signed off on the PFGBest affadavit and who is listed on the NFA website as both the "Director of Audits/Investigations" and the "Director of FOREX Compliance", Lauren Brinati, is the same woman whom I and my attorneys dealt with two years ago.
Now, hold on to your pantyhose.
One of my attorneys in the Schuyler Roche Crisham firm in Chicago, as livid as I was by the NFA's galactically stupid contention about hedgers being limited to one round-turn per cash inventory cycle, called Lauren Brinati to discuss the NFA's position. Lauren Brinati said that she couldn't discuss the matter with my attorney directly because:
"I don't actually understand any of this stuff. I just sign whatever comes across my desk."
Lauren Brinati, June 2010
Lauren Brinati said that to my attorney in June of 2010.
This woman is DIRECTOR OF AUDITS AND INVESTIGATIONS, and openly stated that not only did she have no understanding of the futures and options industry, but also admitted freely that she was a de facto robosigner who signed off on ANYTHING that came down from above.
The NFA had full, direct auditing oversight of PFGBest because PFGBest was a non-clearing FCM. The Director of NFA Audits and Investigations, Lauren Brinati, admitted freely to my attorney that she lacked even rudimentary understanding of the industry, could not discuss even the simplest concepts, and signed whatever came across her desk from on high without understanding it.
Anyone who is interested in pursuing this as evidence of gross negligence and breach of fiduciary duty by the NFA, and Lauren Brinati personally, should have their attorney contact me.UPDATE: The NFA was mailing bank account confirmations to an UNVERIFIED PO BOX in CEDAR FALLS, IOWA that was actually rented by Russell Wasendorf, Sr. That's how he was faking the balance confirms. That's right, Lauren Brinati and the NFA auditing crew snail mailed account balance confirms, confirming HUNDREDS OF MILLIONS OF DOLLARS in customer funds to an UNVERIFIED PO BOX in CEDAR FALLS, IOWA. You simply cannot make this shit up.
Yes, I kid you not. They actually tried to make that argument. As in a feedlot or rancher who is hedged with short futures and has a big open profit on the hedge MAY NOT exit that short futures and buy puts in order to manage that position. Or, if a hedger has an option position that has a big open profit, the hedger may NOT roll that option position into a different strike price in order to capture equity and protect against time value erosion.
The NFA actually tried to argue that it is against the law for a hedge broker to transact more than one round-turn per cash commodity inventory cycle. Again, I can't make this crap up. I have all of their stunningly ignorant letters to prove all of this.
But here is the point, and anyone out there who is a PFGBest customer or an attorney representing a PFGBest customer needs to listen up:
The same "Senior Compliance Manager" who signed off on the PFGBest affadavit and who is listed on the NFA website as both the "Director of Audits/Investigations" and the "Director of FOREX Compliance", Lauren Brinati, is the same woman whom I and my attorneys dealt with two years ago.
Now, hold on to your pantyhose.
One of my attorneys in the Schuyler Roche Crisham firm in Chicago, as livid as I was by the NFA's galactically stupid contention about hedgers being limited to one round-turn per cash inventory cycle, called Lauren Brinati to discuss the NFA's position. Lauren Brinati said that she couldn't discuss the matter with my attorney directly because:
"I don't actually understand any of this stuff. I just sign whatever comes across my desk."
Lauren Brinati, June 2010
Lauren Brinati said that to my attorney in June of 2010.
This woman is DIRECTOR OF AUDITS AND INVESTIGATIONS, and openly stated that not only did she have no understanding of the futures and options industry, but also admitted freely that she was a de facto robosigner who signed off on ANYTHING that came down from above.
The NFA had full, direct auditing oversight of PFGBest because PFGBest was a non-clearing FCM. The Director of NFA Audits and Investigations, Lauren Brinati, admitted freely to my attorney that she lacked even rudimentary understanding of the industry, could not discuss even the simplest concepts, and signed whatever came across her desk from on high without understanding it.
Anyone who is interested in pursuing this as evidence of gross negligence and breach of fiduciary duty by the NFA, and Lauren Brinati personally, should have their attorney contact me.UPDATE: The NFA was mailing bank account confirmations to an UNVERIFIED PO BOX in CEDAR FALLS, IOWA that was actually rented by Russell Wasendorf, Sr. That's how he was faking the balance confirms. That's right, Lauren Brinati and the NFA auditing crew snail mailed account balance confirms, confirming HUNDREDS OF MILLIONS OF DOLLARS in customer funds to an UNVERIFIED PO BOX in CEDAR FALLS, IOWA. You simply cannot make this shit up.
Here is the Reuters citation.
UPDATE 2: Just in case you didn't catch it, Russell Wasendorf, Sr. currently sits on the NFA's FCM Advisory Board. Go ahead and screen capture the following URL before they scrub it.
http://www.nfa.futures.org/NFA-about-nfa/committees/advisory-committee.HTML
UPDATE 2: Just in case you didn't catch it, Russell Wasendorf, Sr. currently sits on the NFA's FCM Advisory Board. Go ahead and screen capture the following URL before they scrub it.
http://www.nfa.futures.org/NFA-about-nfa/committees/advisory-committee.HTML
PFG is MF Global all Over Again: ‘JPMorgan is Liquidating Our PM Position at a Loss Without our Consent’
Lauren Lyster’s latest Capital Account is an absolute MUST WATCH as Lyster interviews two PFG customers, one of which states (at the 9:30 mark) ‘our entire PM FOREX future position is locked and JP Morgan is liquidating our position at a loss without our consent!‘
and.....
http://www.silverdoctors.com/russell-wasendorf-sr-currently-sitting-on-nfa-advisory-board/
Russell Wasendorf Sr. Currently Sitting on NFA Advisory Board!
For SD readers wondering how PFG could go several years with hundreds of millions of dollars missing from segregated client funds and yet regulators never say a word, wonder no more.
PFG’s CEO Russell Wasendorf Sr. is currently sitting on the National Futures Association’s Advisory Committee!
Wasendorf is an active member of the committee that is supposedly regulating his firm!!!
You simply can’t make this s*** up!!
Futures Commission Merchant Advisory Committee
| David M. Battan Vice President and General Counsel Interactive Brokers, LLC Washington, DC (term ending February 2015) | Bruce A. Beatus Assistant General Counsel Bank of America Merrill Lynch Chicago, Illinois (term ending February 2014) |
| Maria Chiodi Director and Counsel Credit Suisse New York, New York (term ending February 2014) | Clarence Delbridge, III Executive Vice President FC Stone, LLC Chicago, Illinois (term ending February 2014) |
| Robert F. Klein Managing Director and General Counsel Citigroup Global Markets, Inc. New York, New York (term ending February 2014) | Donald R. Levine Senior Counsel Jefferies Bache LLC New York, New York (term ending February 2015) |
| Bonnie Litt Managing Director and Associate General Counsel Goldman Sachs & Co. New York, New York (term ending February 2015) | Marc Nagel Chief Operating Officer Dorman Trading LLC Chicago, IL (term ending February 2014) |
| Susan M. SchultzGlenview, Illinois (term ending February 2014) | Russell R. Wasendorf Sr. CEO PFG Best Chicago, Illinois (term ending February 2015) |
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