Now that the CFTC has begun their investigation of One World Capital expect some rather unsavory things to come out in the next few months. The Chicago Sun Times just ran this story today on the suit filed against One World:
Feds freeze assets of Winnetka trading firm :: CHICAGO SUN-TIMES :: Business
Quote:
Feds freeze assets of Winnetka trading firm
December 19, 2007
BY DAVID ROEDER Staff Reporter
Federal regulators have obtained a court order freezing the assets of a Winnetka trading firm after customers said it denied them access to their cash.
The Commodity Futures Trading Commission sued the firm, One World Capital Group LLC, and its president, John Edward Walsh, 59, of Lake Forest. The firm specializes in foreign currency markets, allowing customers to conduct trading through specialized software.
The CFTC said that since Nov. 2, customers have reported that redemption requests exceeding $4 million have been denied. The agency, which regulates futures trading, also said One World has been unable to prove it has net capital of at least $1 million, the minimum required of foreign currency traders.
“It is true that some customer redemptions have not been satisfied,” said Kevin Flynn, an attorney representing Walsh. Flynn said his client is committed to working with the CFTC to resolve any complaints.
The firm has about 1,500 customer accounts, he said, adding that he couldn’t comment on its financial state.
The case is the third major complaint to be filed in recent months against Chicago-area trading firms. The CFTC and other agencies are investigating Sentinel Management Group Inc. and Lake Shore Asset Management Ltd. for alleged misappropriation of customer funds.
Walsh could not be reached. Records with the National Futures Association show that he started One World in 2005 after previous employment with several trading firms, including Rosenthal Collins Group LLC and Commerz Futures LLC.
The NFA also said he has been involved in three cases involving customer reparations, but details were unavailable.
Scott Williamson, deputy regional counsel for the CFTC, said the firm dealt mostly in the cash foreign exchange contract and phased out a business in futures contracts. He said Walsh may have improperly commingled customer funds with his own trading, or failed to hedge its risk.
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So what happened to the money? Well sources are telling me that yesterday Charles Martin threw a big bash at the Chicago House of Blues that cost a fortune. Who is Charles Martin? Well he is the guy who applied with the NFA to become a principal of One World Capital but was turned down because:
BASIC Case Summary
Quote:
in 1997, in the Circuit Court of Cook County, Illinois, Martin pled guilty to the felony offense of possession of less than 15 grams of cocaine. The Notice of Intent charged that Martin's guilty plea to a felony offense disqualifies him from registration under Section 8a(3)(D) of the Commodity Exchange Act ("Act").
In addition, the Notice of Intent alleged that in 2000, also in Cook County, Illinois, Martin pled guilty to and was found guilty of the misdemeanor offense of theft. The Notice of Intent charged that Martin's guilty plea to and conviction of a misdemeanor offense involving theft disqualifies him from registration under Section 8a(3)(E)(iii) of the Act.
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I love Martin's response to the NFA's decision to deny his principalship. He, "did not deny the allegations contained therin. However, he stated that he intended to show that his conditioned registration would not pose a risk to the public."
Riiiiiiiiiiiiiight. Why didn't he just claim to have found Jesus? The NFA still rejected Martin in any case. But that didn't stop him from running the show at One World. The NFA says in its own complaint against One World earlier this year that "NFA received information that Martin was in charge of One World's entire operation and was acting as an undisclosed principal of the firm."
BASIC Case Summary
Last month One World "Agreed" to never allow Charles Martin to set foot in their office again in a settlement with the NFA. But looks like the damage has already been done. Within weeks of the NFA's decision the firm went bust. And Mr. Martin can be seen hoisting a Cold Frosty One at a downtown Chicago bar, laughing all the way to the bank...