A brief overview of events -
The final short sale was on 25th April 2016 for $165,785.40 (before commission) (See appendix 21). By any account this is spectacular growth. GKA were to be commended for growing my money so much and so quickly –– BUT they have not sent one dollar back even after many promises!!
I did not mind making the first investment as I wanted to move some money off shore. (Initially I gave a list of six objections (see appendix 5), but GKA (David) persisted and told me that it was not in GKA’s interests for me to lose money on the first trade as then I would obviously not use GKA again – so I went ahead with it). The first batch of shares was obtained for just under $6,000 (see appendix 4 & appendix 7) – which I could manage comfortably. Little did I realise I had just swallowed the hook!
Soon afterwards GKA (Adam) talked me into selling the above shares for a modest profit, and buying a second batch of shares (see appendix 8), [GKA Strategy 2]. However, the second batch required a further investment of $6,000 [GKA Strategy 3], but Adam assured me that by the end of the month my total investment of approximately $12,000 would have grown to $20,000 [GKA Strategy 1].
Soon after, GKA (Adam) sold these shares at a good profit as promised, [GKA Strategy 4], so that my investment of $12,000 was now worth almost $18,000 (see appendix 10). This was just one month after the purchase of the first shares and my money had grown by 50%! I was impressed with GKA.
GKA (Adam) used these funds to buy a third batch of shares (appendix 10), and what really pleased me was that this third batch did not require additional funding – it was entirely funded from the sale of the second batch. Then three weeks later GKA (Robert) sold these shares for just over $21,000 (appendix 11) so now my $12,000 had grown by 75%, in less than two months [GKA Strategy 1]. In my mind GKA were now the cleverest share traders in the world and I was very grateful to be one of their clients!
The fourth batch of shares (appendix 11), were also entirely funded from the sale of the shares that had been sold, in this case the third batch – which again please me. But there was a surprise waiting for me -
So I made, what was for me, an uncomfortably large investment in ‘warrants’, (appendix 13) of just over $24,000 to purchase (exercise) these warrants. It meant that I had to cash in virtually all my savings [GKA Strategy 8].
The fourth shares and their warrants were sold by GKA a month later and now my account had approximately $88,000 (see appendix 15) for a total investment $36,000. GKA had seemingly grown the money I had sent to them by 144%, which of course impressed. But the proceeds of the sale did not stay in my account. Instead they went immediately, [GKA Strategy 2] and without consulting me, towards the purchase of a fifth batch of shares (3000 VA shares), which required that I come up with an additional $27,668 on top of the $88,000 sale of the fourth shares [GKA Strategy 3].
I communicated to GKA (Robert) that I had now passed my comfortable limit. I tried to reason with him saying that he knew I had “overstretched myself on the last trade” (appendix 16) as a result of the unexpected warrants. I suggested that GKA cut the trade to just 2000 shares, since this could be funded entirely out the sale of the fourth shares. If this was not possible then I would still be able to manage 2500 shares with not too much borrowing. But GKA (Robert) insisted that it had to be the full 3000 shares for reasons that I did not fully understand. He sounded so knowledgeable and was so convincing -
Throughout this stressful period of raising the funds, GKA (Robert) repeatedly assured me that as soon as GKA received my transfer they would transfer $40k back to my account in South Africa (see appendix 19), [GKA Strategy 5]. I felt reassured as this would be more than enough to repay the borrowings. GKA (Robert) also assured me that there would be an excellent return on the 5th shares [GKA Strategy 1]. The transfer was made in April, and GKA (Robert) said that they were starting the repatriation of the $40k. (See appendix 27). I was most relieved.
Then five days later I received very bad news, although GKA (Robert) said it was ‘good news’. GKA (Robert) had apparently just discovered that these shares also had attached warrants to the amount of $75,000 [GKA Strategy 4]. This was more than the entire amount I had invested so far! I was devastated. I wrote a strongly worded letter (appendix 29) explaining that they had made numerous promises throughout the month of April to repatriate funds and he could not do this to me. He said the warrants had only just come to light, but to assist me GKA would lend me half the money (i.e. extend a 50% ‘margin’).
I applied to the bank for a bond on my house to raise the funds. I signed the trade agreement (appendix 34), and sent it to GKA under a covering email that informed GKA that the trade was subject to the bank approving the required bond on my house. However after a lengthy process of providing financial statements and other documents to the bank they refused the bond application. At this point GKA offered a 75% margin ‘to assist you’ (appendix 40) -
It seems as if at this point Robert Knight realised that he would not get any more out of me and stopped contacting me. [GKA Strategy 9].
About a month later I was contacted by another GKA operative, Ian Feldman [GKA Strategy 10].
When Ian realised I was not going to send any more money, he adopted punative measures. First he increased the required amount to exercise the warrants back to 50% (appendix 47), and then later back to 100% (appendix 51 LHS), [GKA Strategy 7].
Mike sent a letter proposing two options. The first required me to come up with $5,000 and GKA would then loan the remaining $70,000 so I could buy the said 3000 VA(W) warrants, and in return my account would be worth $334,920 – $70,000 = $264,920. (appendix 53, LHS) [GKA Strategy 1].
The second options was: “You choose not to exercise your said VA(W), leaving you in ownership of just 3000 common shares of VA with today’s market price of $55.82 per share totaling $167,460”.
I informed GKA (Mike) that I chose the second option (appendix 53, RHS), and I requested that $100,000 of the $167,460 be transferred into my South Africa account, and the balance was to be reinvested, after deduction of GKA’s $1,000 commission.
After about two months I tried to re-
Adam sent documentation relating to a ‘temporary clearing account’ [GKA Strategy 17], and explained that if I paid an amount of $4,186.50 into a GKA nominated bank account they would take the necessary steps and after a few days my account would have a net account value (transferrable balance) of $334,920 [GKA Strategy 1] of which 100% could, at my discretion, be repatriated in a matter of days. (appendix 55 and appendix 56), [GKA Strategy 5].
Regarding point (e) of appendix 58, I stated that I felt more comfortable with Mike Gordon’s option 2 described earlier, and which I had already accepted on 6th September. I therefore still awaited the $100,000 USD to be repatriated as requested from the $167,460 USD, with the balance to be reinvested after deduction of GKA’s $1,000 commission.
Adam categorically stated that Option 2 was out of the question [GKA Strategy 6], and I would have to pay the $4,186.50 into a GKA nominated bank account [GKA Strategy 8] before GKA would unfreeze my account and repatriate any funds.
Five months passed until I was again contacted by GKA on 4th April 2017, this time by Richard Scott (see appendix 60), [GKA Strategy 10]. Some days later he came up with a proposal of selling my VA shares for $162,525.00 and buying Uber shares for $170,000, but this meant there would be a shortfall of $7,475 which I would have fund [GKA Strategy 3]. This done he would sell the Uber shares about a month later for $275,000 (5000 shares x $5.50, see appendix 61), representing an increase of 69.2%. [GKA Strategy 1]. An astounding profit in one month – and would you believe that it all hinged on me coming up with just $7,475! He phoned many times and would repeatedly urge me “give me your trust”. But by this time I had nothing but distrust for GKA and all associated brokers. (see appendix 62).
A few more months passed until I was again contacted by GKA, on 25th August 2017, by Daniel Rosenthal, and he wanted to know about my investments (see appendix 63). I told him I had an investment of $167,460 which should be easy to liquidate (see appendix 64). (I had in mind the money GKA owed me – see Option 2 in appendix 53). Soon afterwards, Daniel phoned to tell me that he had managed to sell the VA shares. This call was followed up with a ‘Trade Confirmation’ for me to sign in order to buy $165,785.40 worth of IMGN shares using the cash on account from the sale of the VA shares (see appendix 65).
Next Daniel sent me an attachment extoling the benefits of having an “Offshore Premium Account” (see appendix 67), and again asked me to sign the Trade Confirmation corresponding to buying IMGN shares.
Three days later (4th Sept 2017) I mailed Daniel to say I did not want to buy IMGN shares (see appendix 68). Daniel did not respond.
On 14th Sept 2017, I emailed Daniel again saying that I wanted to repatriate the full amount of the cash on account $165,785.40. (See appendix 69).
The same day I received a phone call from Mark Baker from GKA, who said they would repatriate the $165,785.40 within seven days (see appendix 70), and in return I should take down this website. I still have had no response from Daniel! [GKA Strategy 9].
Regrettably, as of 5 July, 2019 the funds had still not been repatriated. [GKA Strategy 6]. It therefore seemed appropriate that I update my website to warn potential clients what is likely to happen to them if they send Garrett Knight Associates their money.
KEY TO GKA STRATEGIES:
Strategy 1 : GKA will promise or pretend very good profits
Strategy 2 : GKA buy new shares immediately after selling shares – so there is no cash to repatriate
Strategy 3 : GKA buy shares costing more than the sold shares – to get you to ‘invest’ more
Strategy 4 : GKA will inform you that the last batch of shares had ‘warrants’ which must be ‘exercised’
Strategy 5 : GKA promise speedy repatriation – to encourage a ‘dry’ client to start borrowing
Strategy 6 : GKA never repatriate – money must flow in not out
Strategy 7 : GKA threaten you with punitive action if you refuse to send more money
Strategy 8 : GKA will suck you dry of every last penny – even your pension, even your house
Strategy 9 : GKA stop communications if they are not succeeding in getting more of your money
Strategy 10 : GKA will hand you over to another colleague if they are not getting any more out of you
Strategy 11 : GKA will take 101% of every investment you give them and never return it to you
Strategy 12 : GKA do not buy or sell real shares – they just issue fake ‘Invoices’ and ‘Trade Confirmations’
Strategy 13 : GKA’s website is all a deception to make you think they are a bona fide firm of stock brokers
Strategy 14 : GKA’s registration process, the forms you send them etc, is also part of the deception process
Strategy 15 : GKA operatives are careful to conceal their true identities and are untraceable
Strategy 16 : GKA will get you to default in some or other way, then freeze your account (= steal your money)
Strategy 17 : GKA operatives have many more ways of defrauding you than you could ever imagine.
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