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Thanks for the info I will call him. You are right, I am going by what he
told me regarding the offering.
-----Original Message-----
From: bruceb@xxxxxxxxxxxxx <bruceb@xxxxxxxxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Date: Wednesday, June 24, 1998 11:56 AM
Subject: RE: Advantage Trading Group, Richard Spohr, and the truth
>
>
>> -----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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