Comments on: Vote of No Confidence: A Call to Investigate the National Futures Association http://www.hedgeworld.com/blog/?p=5264 A look behind the hedge fund curtain Wed, 22 May 2013 13:16:17 +0000 http://wordpress.org/?v=2.6 By: Kevin Koy http://www.hedgeworld.com/blog/?p=5264#comment-96963 Kevin Koy Sun, 19 May 2013 16:51:02 +0000 http://www.hedgeworld.com/blog/?p=5264#comment-96963 In fact, to correct the record, the resolution of the "fair hearing" alluded by "Albert Preuss" was not ordered but arrived at via a negotiated settlement entered into to avoid a costly process. But this settlement, from my perspective a miscarriage of justice, sure didn't feel voluntary...felt like settling at the point of a gun, not because of guilt, but in order to avoid a costly process who's outcome was not only all but predetermined, termed by an informed individual as the epitome of an Orwellian kangaroo court. Because the NFA is not a government agency per se, it is not a Court, and so in its hearings jurors are not disinterested citizens but rather a recurring pool of folks paid significant fees but who I'm told don't get re-invited back by the NFA if they vote against their own pocketbook by ruling against the NFA. To make matters worse, the decision as to what is exculpatory evidence and so what can or cannot be introduced at an administrative hearing is not based on the ruling of an independent judge, but rather by the NFA itself. In other words, for the NFA, justice is not the goal, as our attorneys repeatedly said. I think it sheds significant light to appreciate that in the above-mentioned matter, not only were there no complaining clients alleging what the NFA alleged, but in fact THE OPPOSITE! Specifically, when the NFA called clients to see if they agreed with the NFA notions, even though the clients said no, NFA staff, drunk with their own momentum, continued to push their fiction. Indeed, when my lawyer offered signed, notarized sworn affidavits from each and every client who owned accounts the NFA alleged received mistreatment, thus totally contradicting the NFA's position, not only did the NFA fail to backtrack, it remained unwilling to reevaluate its position and stated that in effect, even though no clients complained, even though no clients agreed with the NFA charges, even with all clients stating so in sworn, notarized documents, who cares? The bottom line: NFA is not about finding wrongdoing and doling out justice, but rather what the above article suggests, justifying its existence and in doing so regularly overplaying its hand. Devil may care. Thomas Jefferson said "The power to tax is the power to destroy." I would add "tax or regulate." The recent disclosures revealing taxing authority IRS treating non-profit applications with a drastic difference based on who made them--or more specifically based on the IRS's perception of the organizers personal beliefs and probable political persuasion--this revelation illustrates how empowered bureaucracies actually operate behind closed doors. The field of anthropology speaks to the pervasiveness and universality across all cultures of the in-group/out-group mentality as a default mechanism for those in power. Seeing how so many different men in power internationally within the Catholic Church papered over the evil deeds of molesters in their own ranks...perhaps the most vile recent example. PFG and Russ Wasendorf were part of the NFA's in-group, as was then near-celebrity Jon Corzine and MF Global. (It now comes out that, according to the New York Times, that (to me) the surprisingly un-imprisoned Obama fundraising bundler who presided over/orchestrated the MF Global debacle, Dem. Jon Corzine, actually paid substantial consulting fees to Mrs. Huma Abedin, (D.) who also just happens to be Dem Hillary Clinton's thisclose assistant and also the wife of the sexually-frustrated current New York mayoral candidate and former Congressman A. Weiner, (D.), he having resigned in a shocking lack-of-judgment display, a sex-related scandal.) My point is, in my opinion, the NFA could school the IRS in how to regulate similar populations completely differently based on whether they are members of the in-group or the out-group. Lastly, while I am not charging that he does not exist, I could not find any evidence of the actual existence of a human being alive in 2012 named Albert Preuss, either in Decatur or anywhere else in our country. meanwhile, the NFA does spend considerable time and resource scanning the internet--so I would not be at all surprised to find out that NFA personnel might have actually authored these missing-the-point-while-parsing and pro-NFA partisan comments offered under the Preuss name, especially the revealing statement, "offered them a fair hearing." In fact, to correct the record, the resolution of the “fair hearing” alluded by “Albert Preuss” was not ordered but arrived at via a negotiated settlement entered into to avoid a costly process. But this settlement, from my perspective a miscarriage of justice, sure didn’t feel voluntary…felt like settling at the point of a gun, not because of guilt, but in order to avoid a costly process who’s outcome was not only all but predetermined, termed by an informed individual as the epitome of an Orwellian kangaroo court. Because the NFA is not a government agency per se, it is not a Court, and so in its hearings jurors are not disinterested citizens but rather a recurring pool of folks paid significant fees but who I’m told don’t get re-invited back by the NFA if they vote against their own pocketbook by ruling against the NFA. To make matters worse, the decision as to what is exculpatory evidence and so what can or cannot be introduced at an administrative hearing is not based on the ruling of an independent judge, but rather by the NFA itself. In other words, for the NFA, justice is not the goal, as our attorneys repeatedly said. I think it sheds significant light to appreciate that in the above-mentioned matter, not only were there no complaining clients alleging what the NFA alleged, but in fact THE OPPOSITE! Specifically, when the NFA called clients to see if they agreed with the NFA notions, even though the clients said no, NFA staff, drunk with their own momentum, continued to push their fiction. Indeed, when my lawyer offered signed, notarized sworn affidavits from each and every client who owned accounts the NFA alleged received mistreatment, thus totally contradicting the NFA’s position, not only did the NFA fail to backtrack, it remained unwilling to reevaluate its position and stated that in effect, even though no clients complained, even though no clients agreed with the NFA charges, even with all clients stating so in sworn, notarized documents, who cares? The bottom line: NFA is not about finding wrongdoing and doling out justice, but rather what the above article suggests, justifying its existence and in doing so regularly overplaying its hand. Devil may care.
Thomas Jefferson said “The power to tax is the power to destroy.” I would add “tax or regulate.” The recent disclosures revealing taxing authority IRS treating non-profit applications with a drastic difference based on who made them–or more specifically based on the IRS’s perception of the organizers personal beliefs and probable political persuasion–this revelation illustrates how empowered bureaucracies actually operate behind closed doors.
The field of anthropology speaks to the pervasiveness and universality across all cultures of the in-group/out-group mentality as a default mechanism for those in power. Seeing how so many different men in power internationally within the Catholic Church papered over the evil deeds of molesters in their own ranks…perhaps the most vile recent example. PFG and Russ Wasendorf were part of the NFA’s in-group, as was then near-celebrity Jon Corzine and MF Global. (It now comes out that, according to the New York Times, that (to me) the surprisingly un-imprisoned Obama fundraising bundler who presided over/orchestrated the MF Global debacle, Dem. Jon Corzine, actually paid substantial consulting fees to Mrs. Huma Abedin, (D.) who also just happens to be Dem Hillary Clinton’s thisclose assistant and also the wife of the sexually-frustrated current New York mayoral candidate and former Congressman A. Weiner, (D.), he having resigned in a shocking lack-of-judgment display, a sex-related scandal.) My point is, in my opinion, the NFA could school the IRS in how to regulate similar populations completely differently based on whether they are members of the in-group or the out-group.
Lastly, while I am not charging that he does not exist, I could not find any evidence of the actual existence of a human being alive in 2012 named Albert Preuss, either in Decatur or anywhere else in our country. meanwhile, the NFA does spend considerable time and resource scanning the internet–so I would not be at all surprised to find out that NFA personnel might have actually authored these missing-the-point-while-parsing and pro-NFA partisan comments offered under the Preuss name, especially the revealing statement, “offered them a fair hearing.”

]]> By: Albert Preuss http://www.hedgeworld.com/blog/?p=5264#comment-70542 Albert Preuss Thu, 04 Oct 2012 00:09:28 +0000 http://www.hedgeworld.com/blog/?p=5264#comment-70542 When Mr. Kevin Koy of "New Era Futures" refers above to the NFA as "a gang of jack-booted thugs" it should be noted that an NFA hearing board ordered him to withdraw from NFA membership last year because he had "...placed unauthorized trades in customers’ accounts," among other issues: http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=2955 I would take Koy’s comments on this article, a piece which actually criticized a lack of diligence on the part of NFA regulators, with a grain of salt. NFA did well to take on Kevin Koy and his partner, Dan Stamer, and offered them a fair hearing (see http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=2702 ) - Albert Preuss (Decatur, IL) When Mr. Kevin Koy of “New Era Futures” refers above to the NFA as “a gang of jack-booted thugs” it should be noted that an NFA hearing board ordered him to withdraw from NFA membership last year because he had “…placed unauthorized trades in customers’ accounts,” among other issues:

http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=2955

I would take Koy’s comments on this article, a piece which actually criticized a lack of diligence on the part of NFA regulators, with a grain of salt. NFA did well to take on Kevin Koy and his partner, Dan Stamer, and offered them a fair hearing (see http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=2702 )

- Albert Preuss (Decatur, IL)

]]> By: Kevin Koy http://www.hedgeworld.com/blog/?p=5264#comment-59710 Kevin Koy Thu, 19 Jul 2012 13:51:11 +0000 http://www.hedgeworld.com/blog/?p=5264#comment-59710 You are making strong points here but not beginning to scratch the surface. In fact, the NFA and CFTC, like most regulatory bodies, is the classic example of a racquet, which I define as something that is not at all what it seems to a majority of people, only those on the inside know what it's really about, and it is conducted for the great benefit of the very few--at the expense of the very many. I believe the NFA is a gang of jack-booted thugs, their interest to prop up FCMs with conection--the CME's Jack Sandner was PFG's indier--while killing, destroying, regulating out of existence its competition, the IB community. Statistical fact, the numerical population of the IB community supports my assertion, as does all the anecdotal evidence I have heard, countless stories by IB victims. I have read extensively about it and it in fact learned the NFA's modus operendi is a standard regulatory approach, according to Milton Friedman.. the regulator works to effect near to a monopoly pricing power of a small, powerful group of nearby vested interests--while hammering the small guy. Madoff is of course a another great example. You are making strong points here but not beginning to scratch the surface. In fact, the NFA and CFTC, like most regulatory bodies, is the classic example of a racquet, which I define as something that is not at all what it seems to a majority of people, only those on the inside know what it’s really about, and it is conducted for the great benefit of the very few–at the expense of the very many. I believe the NFA is a gang of jack-booted thugs, their interest to prop up FCMs with conection–the CME’s Jack Sandner was PFG’s indier–while killing, destroying, regulating out of existence its competition, the IB community. Statistical fact, the numerical population of the IB community supports my assertion, as does all the anecdotal evidence I have heard, countless stories by IB victims. I have read extensively about it and it in fact learned the NFA’s modus operendi is a standard regulatory approach, according to Milton Friedman.. the regulator works to effect near to a monopoly pricing power of a small, powerful group of nearby vested interests–while hammering the small guy. Madoff is of course a another great example.

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