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> -----Original Message-----
> From: Barry Small [mailto:unitel@xxxxxxxxxxxxxx]
> Sent: Saturday, June 20, 1998 12:56 PM
> To: omega-list@xxxxxxxxxx; JMB
> Subject: Re: Advantage Trading Group
>
>
> No they are not belly up. No your money is safe with LFG. Yes they are a
> great firm. They just had a problem with the NFA regarding a private
> offering they were in the process of marketing to allow them to be a FCM
> versus IB.
Barry, no regulatory body is that aggressive and that proactive. The NFA
did not step in because Richard Spohr and Advantage "were in the process" of
selling stock. Advantage DID issue the stock a long time ago to 35
investors and received $300,000 from the sale (these are the minimum figures
I know to be true, the actual numbers might be higher). A relative of mine
was one of the unfortunate 35.
You are correct in saying that the money was to be used to allow Advantage
to become a FCM versus an IB (at least that's what Richard claimed in the
prospectus), but a funny thing happened on the way to the bank. Richard
never used the money to become a FCM and the $300,000 has mysteriously
disappeared. Every penny of it. Not surprisingly, several of the investors
complained to the NFA, and that's how they got involved.
Barry, I'll give you the benefit of the doubt and assume that this
information is new to you. If you said Advantage was only in the process of
selling stock simply because that's what Richard told you, then he flat-out
lied to you (although I guess he might be in the process of selling stock
AGAIN). Richard's track record on telling the truth isn't very good.
> All is well with the firm.
It's probably true that Advantage customer's money is safe with LFG. I
don't know enough about the FCM-IB relationship to comment. But you don't
have to be a rocket scientist to conclude that Richard's relationship with
LFG is pretty strained right now. Aside from the fact that LFG had to take
over Advantage's operations for a period of time during Richard's hearing,
they can't be too happy with the negative publicity that comes with this
whole situation. If that weren't enough, they now know Richard was/is
making plans to jump ship and become his own FCM. That doesn't exactly give
them a lot of incentive to help Advantage in any way they can.
An owner with a history of financial improprieties and strained relations
with their FCM, I'm not sure I'd say "all is well with the firm."
> I dare anyone to find a better responding owner of any IB. Rich is
> available anytime you need him. Yes they are good enough to be true.
Barry, next time you have Richard on the phone, see if you can find out
where exactly the $300,000 is. No one else can.
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