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Technical Investment Methods - Analyzing market trends with technical methods.
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Posted by morgansraiders on July 7, 2008, 11:33 am
WBFI Gold & Silver Scandal: One Investors Opinion
1. The constitution of the United States and the First Amendment
(the British Second Amendment in the UK) protects opinions whether
the Google corporate legal office will is another question. I am not
in violation of any Google, MSM or group, Usernet rules. Under the
guarantees of the First Amendment, a writer neither needs nor
traditionally seeks the permission of the person, institution or
business that they are writing about. My reason for writing this
expose is the hope that investors will not be cheated and not lose
their hard earned money. Many people work hard and deserve better.
Please be advised regarding comments: many posted comments seem to
from the WBFI disinformation team and NOT other bloggers, I bear no
responsibility for their comments and give them little
credibility. Because of the increasing harassment from WBFI and
several others who are involved in fraud, the name of the principal,
has been simply replaced with owner. I deal in fact and not
negative, personnel attacks. I have received about a dozen emails:
four from WBFI current and past investors, they do not want to post
publicly, in part or fear of losing their investment. Two others are
collecting oriented and confirm that the person posting under
thunndar, bewareofmike sells fakes.
2. Contrary to the self-promoted, self written WBFI expands to the
EU article, there is only really one broker: the current owner, she
closes all the sales. The Internet article implies that senior
management and a large staff of brokers are handling a huge volume of
business and moved to Europe to handle new European clients and get
them into the market. Nothing could be further from the truth.
WBFI have a total staff of five, one PA/secretary for the owner, three
Hungarian brokers ( some of the Hungarians speak only halting English
and have a limited education, they do work cheap however) and one US
broker, manager.
3. Oil maybe surging but gold isn't! Friday June 6, 2008, the
US stock market tanked 400 points. Gold WBFI's major selling
commodity has tanked from a peak of $1020.00 (March 2008) to 875.00
an ounce. Gold and silver have both lost value since March 2008.
According to most respected analysts both gold and silver will
stabilize at their current price ($875.00 to $900.00) and then
decrease in value over the next three years. Keep in mind with a new
US presidential election and most likely a Democratic president that
will be elected, that will stabilize the US economy and get US forces
out of Iraq, gold and silver will decrease in value dramatically.
When the markets falls which has been the pattern since November 2007,
gold descends as well. Many investors and hedge fund managers sell
gold to cover their margins in other stocks.
4. One big item in the sales pitch is how gold peaked in 1980 at
$850.00 an ounce. WBFI and others claim that the 1980 inflated gold
price with inflation that the current gold price should rise at around
$2000 to $3000 an ounce. This will not happen because of current
market and economic conditions. Most investors are aware that fear and
speculation fuels the market. The 1980 inflated gold price was only
for a six week period and only because of Iran's action of not selling
oil on the open market. This situation was corrected when other
countries increased their oil production, gold decreased in value and
stabilized at $385.00 an ounce.
5. WBFI has a 3-1 leveraged investment. Leveraged investments are
risky! The interest and other fee's, they eat away at any profit
over a sustained period of time. You will lose money even if you
are not in margin because of the daily compounded interest on the loan
and fee's. The only people that make money are the broker,
depository, and the bank. You can simply buy gold or silver bars or
coins from any jeweler or coin shop and avoid all the fees: store it
yourself, or put it into a safety deposit box and when the market
moves in your favor, sell off the bullion on your own.
6. Get it in writing!! WBFI specializes in phone hustle and does
not deliver. Before you sign on the dotted line, do not just rely on
the phone conversation, send them an email and confirm all the
details in writing. In particular if you are an existing client
and they want you to buy more bullion. The only email investors
seem to receive from WBFI is the payment details. This speeds payment
to WBFI. Most legitimate firms will actually physically mail, regular
air mail, all payment details and information to the perceptive
client and then the investor can look over in detail all the
particulars of the investment.
WBFI never calls to tell investors to sell (they should told
investors to sell in March 2008 when gold peaked at $1025.00 an
ounce), the owner handles all calls. Investors incur more fees to
buy more at the top ask price not bid price. If you receive calls
from WBFI ask them to send an email. Leave your voice mail on!
Send WBFI an email when they recommend to either buy on the phone:
nail down all the particulars in writing. If they are unwilling to
put their terms and conditions or recommendations in writing, not just
the advisory agreement and banking details to get your money, do not
do it. WBFI uses the trick of stating the market is moving so
quickly, you have to act now or you will miss the move, and they have
to contact people telephonically or they will miss the opportunity,
see comments from investors below: "I was called by the owner today
who gave me more good news, usual crap about the market moving. She
told me that the platinum market was moving and that I needed to
invest asap. I received another three calls from J telling me that
the market was going to move more than she had thought and that I had
to get the money in today. She is very eager, she does not respond
to email, she only calls because she claims that the market is moving
so rapidly, WBFI claims that email is too slow or the client might
miss the mail. The owner told me that she wanted to take me under
her wing as she felt that there was a rapport between us. She also
said that as a client of hers I would have many advantages. This is
how things built up. It was after a week or so that she started to
tell me about the big opportunity regarding palladium in South Africa
and how there would be a big increase within 60 days so it was
essential to send her some money to invest in this and then I would
see a huge return within 2 months."
WBFI Trading - Fraud OR Fact
WBFI Trading relies on cold calls from Central Europe, a so-called
precious metals advisory firm is apparently bankrupt for investors but
not the current owner. . WBFI is a registered business in the state
of Florida under the title of Wealth Builders Financial
International. WBFI has recently branched out to the EU and is now
located in Budapest, Hungary where the so-called investment firm has
created a clever shell game of fraud and deception, selling gold and
silver to the UK and the EU. Wealth Builders is also a recently
registered business in Hungary. The current WBFI owner previously
worked at Livingston in Budapest, Hungary a company dealing with with
risky IPO stocks. The company was shut down by the Hungarian National
Police for fraud. The current WBFI management who worked at
Livingstone fled two weeks before Livingstone was shut down, getting
word from a source that shady stock operation was under
investigation. WBFI then worked at Rhino Commodities in Barcelona,
Spain, which was sanctioned and fined by the British FSA for cold
calls and fraudulent activities. Rhino has since closed their offices
in Barcelona.
The owner has gone through a number of partners and employees:
cheating them out of payment and profits; promising generous
commissions and salary, then giving only half of the promised
commissions or nothing at all. One former partner had several real
estate projects, mostly fraudulent ones. The real estate operator
wanted 50% of the business based on his leads which were worthless.
The leads were free downloads from real estate lists: agents, property
investors etc. One scam involved a Romanian property development
getting clients from the UK to invest, take the commission from the
sale and claim that all was well and the development was proceeding as
planned. The Romanian property owner would take the money but not
build anything. Amazingly no one ever checked to see if they were
building the development. Apparently the Romanian partner claims that
all the money was in his wife's name and she has just died.
Starting in January 2008, to replace former partners and employees
the owner has surrounded herself with friends and street people, some
from the USA. One guy they brought in from Philly, was abusive and
crazy; he would go out and smoke pot and crack and come back in and
try to close deals, coming into work at her home so drunk, he
collapsed in the couch for half the day until one of the owners caught
him sleeping, apparently passed out for hours. The owner wouldn't fire
him as WBFI needed his skills so desperately.
The first week in March 2008, WBFI supposedly had $700,000 in excess
equity or profit from our clients accounts. The owner previously only
dealt with gold and silver, the owner then decides to go into platinum
and palladium, when it had peaked in price due supposedly to an
electricity shortage in South Africa. The owner convinces all clients
to change from gold to palladium, claiming that she is not even
charging a commission for the service. Interesting in that the first
pitch we used to get clients in, was that WBFI only charges a one time
fee. However, in the disclaimer/risk disclosure that is sent the fine
print states that WBFI charges a 15% commission every time a
transaction is completed, to include loads and rolls. Palladium is a
thinly traded metal used in the auto industry, the day after she
convinces all her clients to change metals from gold into palladium,
the metal loses over $200 an ounce. Her economic genius is astounding,
in 24 hours she loses over a million dollars, putting every client
into margin call or so she claims.
The Real Story
WBFI's business in Hungary is failing and she needs cash flow. The
owner claims the first week of March 08, on a whim..... that she is
taking all the UK accounts from gold and silver, to palladium. The
owner claims that the three US accounts are not interested in changing
metals. WBFI proceeded to cash in on the profits from her book, put
in a sell order with the clearing house, took the proceeds and
deposited it in her US account, then probably transferred the proceeds
to an off shore account. To cover the loss of equity, she comes up
with this wild scheme, to all of a sudden buy palladium? Jackson knew
palladium would fall, I do not think she thought it would crumble that
quickly. She is also an excellent actress. WBFI claims to all
clients that she made a mistake and NEEDS MORE MONEY for margin. But
she will make them more money on the new investment, millions.
WBFI claims it is NOT charging to change metals: gold to pallidium in
March 08, no roll fee, WBFI never does anything without charging.
Mysteriously after all this talk of the hot new metal that will peak
and make huge money, the next day, the very next day, within 24 hours,
palladium tanks. Why only UK clients and not US clients. US clients
could take legal action. Although you would have to serve Jackson in
Budapest, Hungary to sue WBFI. US clients could check as to where the
money actually went with the clearing house. US clients could still
sue the clearing house in Florida and or go to federal law
enforcement. The UK clients have limited recourse and would have to
travel to the US to sue. They could try to sue in Hungary but her
assets are based in the US and off shore, so even if they won the law
suit in Budapest they could not collect any judgements. Trading in
metals is NOT covered by the British FSA, only stocks and options.
WBFI gets around many laws by transferring UK accounts to US banks
and metals depository, where legal action to reclaim client losses is
harder to locate as they have to file suit in Florida and not Hungary.
The US clients funds are put in a Hungarian account, so if legal
action is sought they have to file suit in the EU. Jackson employs a
metals depository in Miami, Florida called Capital Asset Management.
The owners former US website http://www.wbfi.com/ has been
discontinued and the web address is for sale because of her legal
difficulties in the United States where she can no longer openly
conduct business.
WBFI has lost all the profits from the gold and silver. In the middle
of March 2008 thanks to a huge influx of cash from the US government
and a slightly improved US economy, due to speculation that the
government will put more money in the market place and give generous
tax refunds. Oil tanked and so did gold and silver over a week long
period in March 2008. Because of these factors WBFI has now lost value
with the remaining gold and silver which has gone into margin. Many
remaining clients can not make margin due to the heavy losses already
sustained. Almost all have lost their entire investment, total 6
million dollars from over 30 clients. Apparently with the metal that
is left, she has cashed out all the client accounts and split, closing
her doors............ Setting up another phone room in her home in the
Buda Hills.
The owner claims to be under heavy stress and suffers from migraine's
and hired a private Hungarian doctor in Budapest to give her
injections of so-called vitamins or "cocktails"; because of her
supposed medical problems. The owner claims that she is constantly
vomiting blood and suffers from stress headaches. I have never seen
her hospitalized, she has her partner simply call the doctor and then
gets injected with Morphine or Seconal. Some injections were a mixture
of Demerol and other strong narcotics, that knocked her out for the
evening and the next day. I worked in her home and was asked to stay
late to do evening calls to the UK. When I was ready to leave I saw
the owner on the living room couch and her pants or skirt lowered and
the doctor injecting her with a large syringe. I also found many
needles in their home and she claimed to be a diabetic. I also found
wrappers with a tarry black substance, many containers for
Xanax,Valium as well as Perkaset, all being prescribed by the
Hungarian doctor.
The public record indicates that the owner is being sued in Budapest,
Hungary as she does not pay her landlord or other bills. The scheme
entails that the owner rents a large home, pays the first months rent
and deposit, she then refuses to pay anything further, claiming that
their is a problem with the plumbing or the Internet connection will
not work, stays five or six months until the owner files suit and
forces her to leave the residence and then moves on, repeating the
procedure so she can rent an expensive home in the hills at a discount
or as the owner states, "almost for free".
WBFI are looking for new clients to build a new book. Whatever you do,
do not do business with this firm. My best advice if you want a safe
investment, keep your money in the bank. The United States Embassy in
Budapest, Hungary has been notified of WBFI's activities as well as
the FBI who regulates the gold and silver bullion market in the United
States where the bullion from her firm is supposedly held.
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