MY STORY
A detailed account of how I was defrauded by Garrett Knight Associates (GKA)
IF YOU DO NOT HAVE TIME TO READ ALL OF THIS, THEN PLEASE JUST GO TO THE END OF THIS DOCUMENT, AND READ FROM 5th SEPTEMBER – IT WILL OPEN YOUR EYES. ALTERNATIVELY GO TO THE TAB ‘SUMMARY’ FOR A SHORTER VERSION OF ‘MY STORY’.
It all started early in January 2016 with a telephone call from a lady with an Asian voice from a marketing company saying that an experienced stock market trader would get in touch with me. I told her I was not interested but she was very persistent and said there was no obligation to buy anything.
A short while later David Morgan, Chief Trader, Garrett Knight Associates, phoned and recommended that I purchase 100 shares in ‘Skyworks Solutions’ (SKWS), valued at $5,997. I told him I was not interested but he was very persistent. I told him I would think about it and eventually agreed (after some more persuading phone calls) to make the investment. (I had after all been wanting to make some off shore investments to hedge against the falling rand).
18th January, 2016
I received two forms to fill in: (a) The W-8BEN form [Certificate of Foreign Status of Beneficial Owner for United States Tax withholding and Reporting (Individuals)] (see appendix 1), as well as (b) an application form from GKA to open an account with them (see appendix 2). These forms came attached to a welcoming letter from “Ryan Smith, Client Services Support” (see appendix 3), and it all looked perfectly genuine.
19th January, 2016
I receive a trade invoice from Christopher James, Accounts Receivable, for the 100 shares (see appendix 4).
I then contacted my financial advisor in South Africa and he advised me to contact the Financial Services Board (FSB) in South Africa to see if GKA were approved by them.
20th January, 2016
I mailed David Morgan (see appendix 5) and gave him six reasons why I did not want to buy the shares.
Later that morning he phoned and somehow managed to convince me that I had no cause to worry, that it was an excellent investment, and that it was not in his interests to recommend stocks that would not appreciate in value, especially in a ‘first trade’ since only then would I consider making further investments with GKA. He was very persistent and very convincing. Unfortunately I did not contact the FSB.
27th January, 2016
I received the banking instructions for the trade (see appendix 6).
3rd February, 2016
The funds left my bank account and I received a payment receipt from GKA (see appendix 7).
9th February, 2016
Adam Manning, Assistant to Daniel Rosenthal, Director of Institutional Trading, GKA, phoned and emailed to say he had taken over my account from David Morgan. He recommended that I get out of Skyworks with a modest profit, so that he could buy 750 MFLX shares, at a price of $12,375, which he said would be very profitable and could be worth $20,000 by the end of the month. He could sell the Skyworks Solutions shares for $6,275, and hence I would have to invest a further $6,100 (see appendix 8) for his mail and the attached Trade Confirmation, which I signed and mailed back to him the same day).
10th February, 2016
Adam sends the banking instructions (see appendix 9). The $6,100 is transferred out my account via Outward
Teletransmission (15th Feb), and GKA send a receipt for the payment, 18th Feb.
19th February, 2016
I receive a call from Adam, followed by an email (see appendix 10) complete with attached ‘Trade Confirmation’ which shows a ‘sell’ of the 750 MFLX shares and a ‘buy’ of 650 NVDA shares both for the same total net value i.e. $17,857.12 after commission (see appendix 10). I sign the ‘Trade Confirmation’ and email it off to ‘Adam Manning’. On paper the ‘sell’ of the MFLX shares is very good. I have made a ‘profit’ of $17,857 – $12,375 = $5,482, without even having to even transfer further funds!
8th March, 2016
I hear no more from ‘Adam Manning’, and I now find myself dealing with ‘Robert Knight’, who is the ‘Director of International Development’, and apparently the son of the founder of Garrett Knight Associates, and he comes across on the phone as a very knowledgeable trader and someone I can relate to and even chat to as a friend. Robert does a ‘sell’ on the 650 NVDA shares for the value of $21, 021 in order to ‘buy’ 6000 CHK shares, also for the value of $21,021 (see appendix 11). This is also a very good ‘sell’ - (on paper) I have made a profit of $21,021 – $17,857 = $4,164. With all these prophets I am now thinking that Garrett Knight Associates is the best broker in the whole wide world. I am ready to convert all my investments into cash and let them do their magic! I sign the Trade Confirmation without hesitation and send it back to him. Once again I seem to have made excellent profits without even having to even transfer further funds!
10th March, 2016
I receive ‘good’ news from Robert (see appendix 12). What Robert means is that for every CHK share (6000 were purchased @ $3.50 = $21,000), they are now worth $4.95 at the current market price, so potentially my investment is now worth 6000 x $4.95 = $29,700 (less 1% commission when sold). Since January I have invested about $12,000 dollars and now its apparently worth almost $30,000 – all this in less than 2 months. I’m thinking Robert Knight is my next very best friend!
Later the same day I receive ‘even better news’ from Robert (see appendix 13). According to Robert, it has subsequently come to light that each of the 6000 CHK shares has two ‘warrants’ at $2.00 attached to them that will also be equal to the going selling price of $4.95 if the warrants are ‘exercised’ i.e. purchased (not exorcised as Robert puts it – demons are exorcised, warrants are exercised - a warrant is a type of share that a company issues to raise further capital, usually at preferential prices). In this case my investment would be worth 6000 CHK shares x $4.95 + 12000 CHK warrants x $4.95 = $89,100 (less 1% commission), for a total investment of about $12,000 + $24,000 = $36,000 roughly.
Robert attaches the ‘Trade Confirmation’ for me to sign as well as the ‘Banking Instructions’ (see appendix 13).
15th March, 2016
I respond to Robert’s mail by saying I will need some time to liquidate some investments in order to come up with the required $24,000 (12000 warrants x $2.00). I raise the funds and the ‘Outward Teletransmission’ goes off from my bank on the 22nd March, and receipt is acknowledged by Robert on 23rd March (see appendix 14).
4th April, 2016
I receive an email from Robert saying he has acquired VA (Virgin America) shares for all his clients (see appendix 15).
5th April, 2016
Robert gives the details - he has obtained 3000 VA shares x $38.25/share, and he has sold all 18000 CHK shares x $4.95/share. The shortfall after commission is $27,688.50. He attaches the corresponding Trade Confirmation and the Banking Instructions (see appendix 15).
I reply (see appendix 16) by saying I already overstretched myself on the previous trades that he did on my behalf and that he should therefore adjust the trade to 2000 shares, after which there will still be $10,944 surplus in my account which should be repatriated to my account in South Africa.
15th April, 2016
Robert replies (see appendix 16) by saying that he has a short sale in place at $55.63 USD ‘to protect you and all our other clients’ and he commits to repatriating 40K once I have paid for the 3000 VA shares and even asks for my banking details – but I must please sign the trade and make the payment.
17th April, 2016
I explain (see appendix 17) that I would have to leverage funds from eight sources and max out my overdrafts in order to come up with the funds for 3000 VA shares. I suggest that we go for 2500 instead as this will greatly reduce my borrowings.
18th April, 2016
Robert promises to repatriate 40k in 4 or 5 days if I pay for all 3000 VA shares.
In my reply I discuss the various sources that I can tap to get the funds for the 3000 VA.
Robert’s reply (see appendix 18) is that ‘the Controller … will take care of your transfer back the same day your transfer clears’.
19th/20th April, 2016
Appendix 19 is about me applying for an overdraft on my business account and cashing in the last of my savings, and about Robert making assurances about speedy repatriation once the funds have been sent to him.
20th April, 2016
Appendix 20 is about me raising concerns having discovered comments on the internet that GKA has scammed people of their monies, to which Robert replies that there is nothing to worry about. He explains that those comments come from an ‘unhappy client who decided to use the internet to extort money from my fathers firm’. His explanation sets my mind at rest.
25th April, 2016
Robert sends the short sale ‘Trade Confirmation’ (see appendix 21) showing that the 3000 VA shares have been sold for $165,786.40.
26th April, 2016
In appendix 22 I inform Robert that I now have the funds in place, I sign the Trade Confirmation and send it to Robert, and I explain that I am on the way to the bank to do the transfer.
In appendix 23 I inform Robert that the foreign exchange would not do the transfer immediately as it came to more than R200,000 rands and that special clearance will be required.
27th April, 2016
I send Robert my banking details (see appendix 24), for the repatriation of the agreed 40k.
29th April, 2016
I email the bank asking why they did not transfer the funds to GKA’s bank (see appendix 25).
The bank apologises and transfers the money. I inform Robert and he gives a copy of the transfer advice to his controller for checking (see appendix 26).
4th May, 2016
Robert informs me that my payment has cleared and that he will settle the trade and let me know when it is done (see appendix 27). I am over the moon, but my hopes are soon to be dashed!
9th May, 2016
Robert informs me that it has come to light that the VA shares have warrants attached. He includes a trade confirmation for $75,750, made up from 3000 VA(W) warrants at $25 each plus 1% commission (see appendix 28). He states that this is actually ‘good news’ (as the warrants only cost $25 each, but when they are sold they will convert to the same value as the current VA shares, ie approximately $56/share).
10th May, 2016
I reply that this is completely unacceptable as he (Robert) has on numerous occasions promised that 40k will be repatriated if I found the funds for the 3000 VA shares, and that he knows that I am not in any position to come up with further funds (see appendix 29).
Robert replies that “in a hostile takeover I or any other broker do not have control if a warrant is issued” (see appendix 30). Later in a call he offers for GKA to put up a ‘50% margin’ (loan) so that I only need come up with $37,875 instead of $75,750.
11th May, 2016
I inform Robert that I have applied for a loan from the bank to cover 50% of the shortfall for the 3000 VA (W) warrants. I also explain that I have almost used up the ZAR1,000,000 that I am allowed to send out the country in a year and ask him if he knows a way around this? (see appendix 30).
Robert sends the invoice reflecting the 50% margin (see appendix 30, RHS), so that I now only have to come up with $37,875 – GKA will put up the remaining 50%. (This in fact is common practice – so nothing strange with the margin concept).
At the same time Robert also sends a ‘Contract for Business Consultancy’ (see appendix 31, LHS) for me to sign, as well as the corresponding Invoice (see appendix 31, RHS) to the amount of $37,875 for 116.54 hours for consulting work (which is entirely fictitious) at an hourly rate of $325 = $37,875. So on paper I am not sending money out of the country to make an investment – I am paying an invoice for consulting work!! In Robert’s words, ‘This simply becomes an invoice that you are paying for services outside your country and is completely legal as well.’ I doubt if the Department of Finance in South Africa, or in Japan, would agree that paying an invoice for services that were never rendered is ‘legal’, especially when the money is in reality going to be used to buy shares – or in this case to exercise warrants.
I thank Robert for the documents and promise to read them (see appendix 32).
13th May, 2016
Robert asks me if I have questions with the ‘Services Rendered’ invoice (i.e. the ‘Business Consultancy’ invoice). I respond by saying that I have submitted documents to the bank to get a bond on my house to raise the $37,875 for the warrants (see appendix 33).
16th May, 2016
I inform Robert that I would prefer to transfer the funds for the warrants via my brother rather than through the Business Consultancy invoice.
17th May, 2016
I inform Robert that GKA does not need to invoice my brother. I will give the $37,850 to my brother and he will send it on to GKA, and later be refunded directly by GKA from the $100,000 that GKA will give back to me in South Africa. (The figure of $100,000 was agreed on in a phone call). However I stress that this hinges on the bank granting a bond to fund this deal. (see appendix 33, LHS).
Robert agrees to refunding my brother directly, but asks for me to sign the invoice (see appendix 33, RHS).
18th May, 2016
I sign the invoice for the 3000 VA(W) warrants, but state that the deal hinges on the Standard Bank granting the bond. (see appendix 34).
20th May, 2016
I inform Robert that the bank wants further documentation (financials), (see appendix 34, RHS).
23th to 26th May, 2016
Robert gently pushes for me to transfer the funds to GKA. I inform Robert that I have submitted the financials to the bank. (see appendix 35).
27th May, 2016
I inform Robert that I am still waiting for an answer from the bank, and send him some of the recent correspondence between myself and the bank (see appendix 36).
30th May, 2016
Robert says the ‘deal is very close to closing’, and asks if I have had an update on the funding (bond application) (see appendix 37).
I respond by summarising the correspondence with the bank, and state that I am still waiting to hear from them (to hear if the bond will be granted) (see appendix 37).
2nd June, 2016
I inform Robert that I had a somewhat muddled response from the bank (see RHS of appendix 38) asking for additional financial information. I explain that it appears the bank is being very cautious, especially in the light of all the money that has left my accounts (and gone to GKA) (see appendix 38).
8th June, 2016
I send Robert a ‘History of Trades’ Excel spreadsheet (see appendix 39) showing the various trades made to date by GKA on my behalf and ask if he is in agreement. The spreadsheet also states in capital letters “THE NEXT TRADE IS STILL PENDING – IT IS SUBJECT TO THE STANDARD BANK OF SOUTH AFRICA GRANTING A BOND ON MY RESIDENCE IN ORDER FOR ME TO FUND THE ‘CASH INVESTMENT’ ”.
Robert responds by saying ‘Good job on the spreadsheet. Your figure(s) are correct as I can see them from here”. Robert continues to say that GKA are now prepared to grant a ‘75% on the margin, but we need to get it done quickly …’ He sends the corresponding Invoice and Banking Instructions. (see appendix 40).
He also sends another ‘Contract for Business consultancy’ and corresponding ‘Invoice for Business Consultancy’. (see appendix 41) – these documents are sent so that I can get the funds out of South Africa, having already sent close to the allowable R1 million per annum.
I receive notification from the bank to say that the ‘minimum requirements (for the bond application) was not met …’ (see appendix 42).
9th June, 2016
I thank Robert for offering a 75% margin, but inform him that owing to the Standard Bank having declined the bond application I am not even in the position to come up with the 25%.
I request that $30,000 be transferred into my account as the business needs an urgent cash flow injection. (appendix 43, LHS).
10th June, 2016
Robert responds by saying that the warrants must be paid for as they are attached to the shares. (The implication is that until the 25% is paid GKA cannot send any monies) (appendix 43, RHS)
30th June, 2016
I email Robert informing that I now realise I have been tricked into sending “all my savings and worse I have borrowed to such an extent that my business is now facing a severe cash flow situation”. I tell him that I am praying for him. (see appendix 44).
6th July, 2016
I get a message from Ian Feldman, Senior Portfolio Manager, GKA. He informs that his strategy is for me to (have such a good portfolio that I will be able to) “retire on your 65th birthday”. (see appendix 45, LHS).
7th July, 2016
I get a message from Robert Knight to say that he is out of the country (Japan) and that I should “be honoured to be speaking to a financial genius” such as Ian. (see appendix 45, RHS).
14th July, 2016
I refer to the ‘homework’ that Ian had given me regarding ‘2nd, 3rd, 4th markets’, as well as ‘regulation T’ as well as the ‘50% requirement’, and request more time to read up on these. (see appendix 46, LHS).
25th July, 2016
I ask Ian why would GKA buy the VA shares on the secondary market (as he was saying they did) when they were available on the open market at the same price (with no warrants attached) and yielded the same dramatic increase in value on the open market? (see appendix 46, RHS).
Ian does not answer the question, but states that “under regulation T margin requirements” GKA can cover up to 50% to buy the warrants, and that the shares expire on 5th April 2017, (see appendix 47). He sends the corresponding trade agreement. (Note that the 75% assistance that Robert offered on 8th June is now down to only 50% assistance!)
(Note that Ian incorrectly states that the warrants are exercisable at $50 per share (see RHS of appendix 47, while the Trade Confirmation states $25 per share, see LHS).
Interestingly their 1% commission has also been dropped in the Trade Confirmation.
28th July, 2016
In appendix 48 I again point out that the VA shares were available on the open market, with no warrants, up till Friday 1st April at around $38.90 and closed on Monday 4th April at $55.11.
I instruct him to sell the 3000VA shares on the open market (which are now worth $56.29 per share) and repatriate $64,026 in South Africa and then invest the remaining $100,000.
1st August, 2016
In appendix 49, LHS, Ian says that the 3000 “VA normal shares” were not paid for on time. This is the first time that this is brought up! Never did Robert, who I dealt with during this time, ever say I paid for the shares too late! (Robert’s line was always that the shares had warrants and that I had to send more money (a lot more money) to pay for the warrants before the VA shares could be sold). And this is also the line Ian took until I asked for money to be sent back to South Africa.
So now Ian gives me a threefold ultimatum:
1. Pay the 50% margin on the VA warrants.
2. Pay harsh penalties for “free riding”
3. Pay for legal council – for both attorneys – plus the outstanding balance!
10th August, 2016
I ask Ian how serious the “free riding” penalties might be? (see appendix 49, RHS).
2nd August through 13th August, 2016
GKA change their service providers! (see appendix 50). So for example, to get through to Ian no longer does i.feldmman@garettknnightmail.com work, now it is i.feldman@garrettknight.com. Why would they do this? (Adam’s explanation was that they were upgrading the security on their emails?).
11th August, 2016
More punitive measures! Ian informs that the 50% margin has been recinded – so now I have to come up with the full $75,000 to purchase the warrants (see appendix 51, LHS).
22nd August, 2016
In my reply (see appendix 51, middle column) I point out that GKA neglected to do a ‘due diligence’ on the 3000 VA normal shares which they bought on my behalf. Knowing that I had no further funds they should have made sure that the shares were not encumbered with warrants (as they insist). As brokers and advisors they were negligent in this regard, and to make matters worse were now trying to shift the blame and responsibility onto their client. Once again I instruct them to sell the 3000 VA shares and return the portion of the proceeds that I have invested with GKA to date.
In appendix 51, RHS, Ian suggests that if I pay GKA $10,000 then he can “start liquidating my account in increments until it is settled”
29th August, 2016
Mike Gordon of GKA phones to say that from now on he will be dealing with my account. He confirms with an email (see appendix 52 LHS).
5th September, 2016
I email Mike asking if GKA is registered with the Financial Services Board in South Africa, especially considering they have lots of clients in South Africa?
I ask for their registration number? (see appendix 52).
I receive a letter from Mike (see appendix 53, LHS) giving me two options.
In the first option Mike says he will give me access to his ‘personal fund margin account’, thereby effectively lending to me $70,000, so that all I now have to find is $5,000 to exercise the $75,000 required for the VA(W) warrants, which will also unlock the 3000 VA shares.
This will leave me with a net worth of $334,920 – $70,000 = $264,920 USD.
In option 2, Mike says I can choose not to exercise the 3000 VA(W) warrants, leaving me in ownership of just 3000 common shares of VA shares totalling $167,460 USD.
6th September, 2016
In appendix 53, RHS, I inform Mike that I choose option 2. I instruct him to sell all my 3000 VA common shares and transfer $100,000 USD into my South African bank account and reinvest the balance after he has deducted his 1% commission.
I REASONED THAT $167,460 (OPTION 2) WAS STILL VERY GOOD FOR MY FOUR INVESTMENTS OF $5,997, $6,100, $24,240, $27,688. AT LEAST WITH OPTION 2 I WOULD NOT BE RISKING ANOTHER $5,000.
I do not receive a reply from Mike Gordon.
TWO AND A HALF MONTHS GOES BY WITHOUT HEARING FROM GKA …
In the week of 2016-11-21 I make two phone calls on two separate days to GKA requesting to speak with Mike Gordon – he is unavailable. I request a call back, but he does not return my call requests.
25th November, 2016
I do however get a call from Adam Manning on Friday 25th, followed by an email (see appendix 54, LHS) to say that henceforth he will be looking after my account from now on, and he promises to get into touch on 28th Nov.
28th November, 2016
Adam Manning calls. He explains that he has reviewed my ‘situation’ and says that warrants are preventing the trade of the 3000 VA shares. He says there are two ways of moving forward, the ‘hard way’ and the ‘easy way’. In the hard way I come up with the $75,000 USD to pay for the warrants.
In the easy way I should apply for a ‘temporary clearing account’ from GKA, which had the advantage of not being hooked up to the regulators for 30 days. However I would have to find $4,183.50, which is 50% of $8,370 which is 2.5% of the combined value of the 3000 VA shares plus the 3000 VA(W) valued at $55.82/share, which is $334,920. (The $8,370 is a refundable activation fee for creating the temporary clearing account of which GKA would lend me 50%). So according to this all I have to do is send $4,183.50 to GKA and then they would do what was required and in a few days I would have funds to the value of $334,920 minus $75,000 (to exercise the warrants) plus a refund of my $4,183.50 = $264,103.50 in my account and I could then repatriate all this money back to South Africa immediately if I wanted. (Thus my four investments totalling $64,026, sent to GKA earlier in the year would have grown by 312 % - remarkable to say the least!)
29th November, 2016
I send an email to GKA (Adam) summarising the ‘temporary clearing account’ proposal (see appendix 54, RHS), asking for comment and corrections, which he gave on the phone, and which are shown in orange.
30th November, 2016
GKA (Adam) sends me a mail with four attachments:
(a) An invoice of $4,186.50 for my 50% of $8,370 of the refundable activation fee for creating a temporary clearing account – see appendix 55, LHS
(b) An internal query form – see appendix 55, RHS
(c) A Memorandum of Understanding – see appendix 56, LHS
(d) Banking details for transferring the $4,183.50 - see appendix 56, LHS
1st to 5th December, 2016
On 5th Dec I email Adam (see appendix 57, RHS) and attach a document ‘MY CONCERNS WITH GARRETT KNIGHT ASSOCIATES’ – see - that gives ‘A brief overview of events’ followed by ‘My Concerns with GKA’. These concerns were summarised under 17 headings as follows:
(a) Cold calling
(b) Different Contact Persons
(c) Disappearing?
(d) Fictitious names?
(e) Identification
(f) Registration?
(g) High pressure methods
(h) Knowledgeable and Convincing
(i) False Repatriation Promises
(j) Warrants
(k) No Due diligence
(l) Staggering growth?
(m) Were any shares ever bought?
(n) Contradictory statements?
(o) Change in bank
(p) Change in email addresses
(q) Fictitious and Unlawful consulting fees?
I also requested that GKA send me the details of the institutional trades that they made of which my shares supposedly formed a small part, and especially the dates on which the institutional shares were purchased.
Finally I request that GKA repatriates the $100,000 USD that I requested on 6th September as per option 2 in Mike Gordon’s letter of 5th Sept.
I received a phone call from Adam and he discussed all the points – in some cases he was able to clear away a concern, while in other cases not. He did not commit his comments/explanations in writing via email.
6th December, 2016
I send an email to Adam (see appendix 58) in which I highlight some points that I am still concerned with under the following headings:
(a) Identification
(b) Unregulated
(c) False repatriation promises & no due diligence
(d) Information withheld
(e) Option 2
Adam responds with a phone call. He is unable to satisfactorily answer my questions or put my mind at rest. Again he does not commit his comments/explanations via email.
7th December, 2016
I email Adam regarding further questions (see appendix 59) under the headings:
(a) Identity
(b) Location
(c) Holding Company
I do not receive any form of reply, neither in writing nor by phone.
……. THREE AND A HALF MONTHS GOES BY …….
20th March, 2017
Richard Scott phones me (yet another GKA ‘broker’ on my case!). He follows up with an email – see appendix 60 – to inform me that he will now be “looking after” my account with GKA and says; “I am going to be working to find a solution to liquidate your position immediately”.
4th April, 2017
Richard Scott emails me (see appendix 61) to say that another client sold 3000 VA shares @ $55 per share ($162,525.00), and in the same transaction bought 5000 Uber Tech shares @ $34 per share ($170,000.00). So all I had to do was to come up with the balance of $7,475.00 and I would be the proud owner of 5,000 shares of Uber Tech! And as these shares would be worth $55 as soon as Uber lists on the Nasdaq stock exchange in May 17, my account with GKA would thus have increased from $162,525 to $175,000 (5000 x $55), a staggering 69.2%! (Very tempting – but not for someone whose eyes have been opened!)
5th April, 2017
I email Richard that I do not have the $7,475 dollars, and that I would not make the transfer even if I did have the funds. (see appendix 62).
I refer him to appendix 53 on my website reminding that GKA and I have a contract and that they should honour it.
Richard does not email me again, but he does phone me several times saying “if you will give me your trust” over and over again. I inform him that trust is something that is earned, which GKA have not done up to now!
Richard offers to assist with a 50% margin – but I decline. Eventually he stops phoning and I hear no more from him.
……. ALMOST FIVE MONTHS GOES BY …….
25th August, 2017
Daniel Rosenthal, Director of Institutional Trading, phones and follows up with an email, stating that he has returned to work in Tokyo (after a long leave of absence for personal reasons) and that he will be managing my account henceforth (see appendix 63). He asks for an overview of “investments currently held”. (I had had two previous phone calls from Daniel Rosenthal in Feb 2016 but no emails were exchanged, and he then handed me over to Adam Manning, who at that time was Daniel’s assistant, with whom I subsequently did two trades – see appendix 9 and appendix 10).
28th August, 2017
I reply (see appendix 64) that “I have an investment of $167,460 which should be easy to liquidate for reinvestment”. (This investment refers to Option 2 of Mike Gordon’s offer, which I accepted, see appendix 53).
31st August, 2017
Daniel sells my 3000 VA shares leaving me with $165,785.40 “cash in account” (see appendix 65). He asks me to sign a “Trade Confirmation” whereby the above funds in my account can be used to buy 2763 “IMGN” shares.
31st August, 2017
I email Daniel (see appendix 66) and congratulate him on the sale of the 3000 VA shares. I ask him what IMGN stands for?
1st September, 2017
Daniel sends an email (see appendix 67) in which he again asks me to sign and send back the Trade Confirmation. He also sends a document “Offshore Premium Account Benefits” – which reeks of tax evasion.
04th September, 2017
I email Daniel (see appendix 68) that the performance of ImmunoGen shares (IMGN) are not as rosy as he indicated, especially when considering a five year period. I therefore requested that the cash from the sale of the 3000 VA shares be kept in my account for now.
14th September, 2017
I email that the full amount of cash in my account, $165,785.40 be repatriated with immediate effect (see appendix 69).
14th September, 2017
I receive a phone call from a Mark Baker (GKA) who agrees to repatriate the $165,785.40, but states that this may take 7 days (see appendix 70).
8th January, 2018
Jonathan Dunlop, who claims to be the director of Investor Relations phones to say that he has been tasked to investigate my account as the internal and external auditors are concerned. He says that he will go into the matter and contact me on Wednesday – which he fails to do.
16th January, 2018
But Jonathan Dunlop, to his credit, does phone again a few days later from +27 87 216 4000 at 6.52pm. I tell him that I am not in my office and can he please phone me back in five minutes. He does not, and I have not heard from him since. It is interesting that this is a South African cell number and not a call from Japan where the first two digits would have been +81. If he was in South Africa then why did he not arrange a meeting between us? Answer: All GKA operatives take great care to remain incognito. All you have is an untraceable fictitious name!
16th July, 2018
I receive a phone call on the 16th July from Mr Alex Barrett, Head of Client Services, to say that he has been assigned to look at my account, and that he will be sending me an email. I receive this email on the same day, which states “I will be in touch with you shortly”, (see appendix 71).
23th July, 2018
Alex phones again and I undertake to send him a summary of my position.
25th July, 2018
I send an email to Alex summerising my position with GKA to the email address that he sent me, (see appendix 72). I mention that Daniel Rosenthal did not follow through with my instruction to repatriate the $165,785, I also mention other persons that contacted me subsequently, ie. Mark Baker and Jonathan Dunlop, and how they too did not follow through with what they said. I again emphatically stress that I require full repatriation of the $165,785 as well as interest from 14th September 2017, the day that I instructed Daniel Rosenthal to repatriate all monies owing to me.
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In this section I have told ‘My Story’ by summarising and commenting on the various communications between myself and GKA, so that anyone who is thinking of ‘investing’ offshore using GKA as their brokers does not get ‘suckered’ like I was.
A careful reading of ‘My Story’ will convince the reader that GKA, as an organization and as represented by the various persons that I had dealings with, intend to divest you of every cent you possess, and then encourage you to borrow to the brink of insolvency, and all the while promising incredible returns once you have made one last ‘investment’, (see appendix 29 for an example).
But always some or other problem arises before they can repatriate, whereby you have to come up with even more funds …… until you are broke. At this point they suspend your account claiming that you are in default and that they will only activate your account once you come up with an amount that is far beyond your reach – and which you would in any case be a fool to give them, as they will keep on coming up with additional requirements for further funding.
And there is nothing you can do, as they are untraceable. For example, I live in South Africa, while their bank is in China, their switchboard is in Japan, which re-
There is also no way you can come up with the true identities of GKA’s various operatives. They will not send you any form of identification such as a copy of their passports – which leads me to think that they use fake names. Neither will they Skype with you, as obviously this could lead to their true identities.
If this is also your story, then please:
(a) Do not send one further cent to GKA! No matter how good the current or next trade looks do not sign the ‘Trade Agreement’ or ‘Invoice’, and even if you have, do not pay it over, even if they threaten to suspend your account-
(b) Set up a website as I have, to tell your story that others may be warned and GKA may lose potential or current customers who check them out on the internet. If enough people do this GKA will soon go broke. As a result of my website former GKA clients have emailed me thanking me for exposing GKA’s fraudulent practices.
Not sure?
If you are not sure whether or not ‘My Story’ is true -
They will then give you lots of reasons why they can’t, or can’t until you make another ‘investment’. (And if you are foolish enough to do this then you will find they still won’t). Eventually you will realise what I found out the hard way. GKA will not repatriate any of the funds you send them, neither will they send you the extravagant ‘profits’ that they claim to have made for you.
CUT YOUR LOSSES NOW! FIGHT BACK! PUT UP A SIMILAR WEBSITE TO TELL THE WORLD HOW THEY HAVE DEFRAUDED YOU! OR ALTERNATIVELY TELL ‘YOUR STORY’ UNDER THE LAST TAB OF THIS WEBSITE.
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Please click on the appendices to open, then Esc to close.
Alternatively a full PDF version is downloadable (and then printable) from the Email Record tab above.
