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A lengthly email explaining clearly of the situation from Paul, NSFG.
Good Morning everyone,
As you can no doubt imagine this last week has been a little hectic for me, I have enjoyed speaking with many of you personally over the phone and all the ideas that you guys have put forward.
Some of them are viable, some of them not so.
Some people have questioned the validity of our claim in respect to the seizure of the funds. To this end we are compiling the Case File along with the Bank Statements and Ken will be personally visiting one of the Forum Members, Cralle/cs65, who will independently verify the situation. I understand that they are going to be meeting this coming weekend and Cralle will no doubt post on the forums in respect to this meeting.
While a vast majority of you have given your support in what needs to be done over the coming months, one problem did occur over and over again, and that was in respect to the lock-in period we applied last week.
Taking these comments on board I have decided that choice is indeed important. No one likes to be told what to do, and especially told what they can not do! To this end then we are going to open up for withdrawals at the end of this month and give you guys the choice of what you want to do.
This will work in the following way. First of all we must establish what the liquidity % is at the end of the month so we know where we all are.
What I will then do is reflect this in your statements, the only way I have of doing this is by showing it as a trading loss. I want to emphasize at this point that we will return the fund to 100% liquidity and that this balance will purely show what your account is currently valued at should you choose to withdraw and close at this point.
If you do decide to take this amount now, it WILL close your account as there will be no more money in your account if you take it out now.
For example:
If your account currently stands at $100 and the liquidity % is determined to be 30%, your account statement will show a balance of $30.
You have the option now of withdrawing this money (or part thereof) or not.
If you choose to take all $30, it would close your account with the Northsea Pool.
I would like everyone to be 100% clear on this fact, by taking this action you now have the choice to do nothing and let your account grow back up to its correct level as per the end of September or withdraw now.
Interest will be added to your accounts each month to this lower balance as we resolve this issue. This means that the interest gains will allow us to build your accounts back up faster than we can by just adding our own money into the fund. The interest however will be added to the lower liquidity figure and NOT the end of September Balance. However you will retain the choice of being able to withdraw.
To summarize the above, the liquidity % will be determined at the end of the month. Your Month end statements will reflect this new figure and withdrawals will be opened as normal till the 15th of the month. Interest will be frozen on your account at the end of September account balance, but you will see your account balance grow each month as the interest and our own funds boost the pool back to its September Balance.
I would like to re-iterate here that the only reason we are showing you the balance that would be currently available is so you have the choice for yourselves to withdraw or not, and not be told that you can not by us.
We have complete and total confidence in getting back to the September Balances, it will cost Ken and I a great deal of our own money to do it, but we will get there!
Okay moving onto other news. We have been in the process these last few months of developing an auto-trading system that will work around the clock trading high-probability set-ups. We have worked out several set-ups which statistically have proven very effective. The problem with statistics is that you have to trade each and every set-up that comes along…fine when your awake and in front of the computer. However we needed something that would work for us while we are not there, and started development on such a project a while back.
We are now in the final testing phase of this system, and while there are still a few minor bugs it has performed very well for us. We will be using the next month or so to fine tune it and then go live with it. Data so far has been very encouraging and we are very excited by its prospects. It is unfortunate that this turn of events has happened right now as had this system been operational these last few months we would have returned some very good %’s and this problem would have resolved itself.
In my previous update I mentioned the fact that we would be separating the Pool Fund more directly from Northsea so that we can become FSA compliant. This will quite possibly be happening over the course of the next couple of months.
You will not actually notice a difference in anything in the first instance other than there being a website dedicated solely for the Pooled Fund or your statements coming from a different address. If it is logistically possible then the database may be placed online so you can view your account online as well as the monthly statements.
The other factor that you will notice is that the performance fee will be reduced. The exact level has yet to be determined, but until your balances are returned to their September level it is not something that you will be paying anyway.
That about wraps it up, as soon as know the exact liquidity % I will advise you all accordingly.
Yours,
Paul
Popularity: 3% [?]
I have no doubt that P&K will get over this delema fairly quickly. I still have my trust in NSFG as always high. Once everything is back to normal I plan to increase my investment here.
actually i trust them and will stay with them… but i don’t like the idea with autotrading… it can bring more losses to us…
anyway i’ll stay till the end…:)
I think I’ll stay.
I’ll lose if I choose to withdraw.
I originally joined as I believed NSFG to be honest and reliable. I have learnt over the last year that there are a lot of situations out there that can happen to good people doing the right thing, still one learns from errors and pitfalls and I think this will be the case with NSFG. I will be staying. “What doesn’t kill you makes you stronger” - NSFG isn’t dead and I believe can become stronger.
I’ll stay with them. I still kind of trust them, and if I choose to withdraw I will only regret that when they are up and running again (hopefully
).
regards adam
I’ll probably stay in, since it’s not really worth withdrawing with such a loss.
I am going to stay with them since we know they are for real; unlike many other programs. This may be the time to increase your investment with them since the value is low.
No wait Qassets, “since the value is low”? Could you explain?
the loss is already a big one, so I think it worth the risk, ….I’m going to stay.
I’m still feeling negative over being lied to, however, if I withdraw now I’ll trigger a MASSIVE capital loss. Do I trust Paul and Ken? Since my trust in them has already been violated I no longer trust them at this time. Once trust is lost it’s well neigh impossible to regain but not out of the realm of impossibility. Against my better judgement I’ll keep what’s left of my money in the pool until it reaches the level reflected in the September statement then withdraw the majority of it but leave a token amount to see what P & K do with it. I don’t really think it’s in P & K’s interest to screw with us any further and they no doubt know that as well since we all not only know who they are but also where they live too. Not that I’d do anything crazy but I’m sure at least one pool member out there has seriously considered a more final option…a final solution.
I really feel I can’t trust them but taking a 70% loss is no good to me either.
Guess I will have to wait it out and hope they can claw it back.
I’t kind of a strange situation where those that sit still and wait (for P&K to grow the fund back) will benefit the more people withdraw and close their account balances now.
Those who decide to withdraw will realize a big big loss, but at the same time ease the recovery situation for those remaining, as the total amount to recover will be lowered.
I’m not sure what to do. Personally I’m pissed cuz they didn’t tell me what happened when it happened. On the other hand I still think P&K will do their utmost to recover the funds, so I’m leaning towards staying put.
However, it’ll benefit if you other guys bail out now
Gold777
You know the old saying “don’t invest what you can’t afford to lose”. Might as well let it ride.
I am not sure what to do. I don’t trust them anymore, but taking 70% loss is almost like losing everything. So probably I’ll gamble what’s left (and I guess will lose it too)
I really wish they would stop with their ‘liquidity’ crap.
I think as most others here I’ll stay in for now. I’ll risk the remaining 30% for a chance to make it back to 100% if they really are using their own money to fund this recovery. At current rates and assuming a very generous 100% co-contribution this will take about 6-9 months.
I am staying too. Rule 1: Never invest more then you can afford to lose.
Bad idea to withdraw at this time. Besides it is close to Black December and like most, you will not have a place to keep the funds except in Egold which isn’t the safest place plus the risk that gold prices might go yoyo.
A nice side effect is that if anyone does withdraw it will probably be the smaller investors ($100 - $300 range). The capital loss for larger investors will be much higher and i don’t think most want to do that.
Better to risk that 30% to make 100% then have no place to put it or risk more leaving it in Egold.
I still have trust in Paul and Ken but i think it will take them a long time to gain back people’s trust. If they pull thru this, it will be a most valuable lesson learnt.
i’ll stay with NSFG
I will just let my $$ rot there….
Some points must be considered:
1-Assuming a 70% loss,means they must produce 330% in order to make up our Sep balance.That would be equal to a +10% compounded monthly for about 14 months.Even an unrealistic expectation of a +20% per month needs about 8 months to reach there.
2-Look at their past performance,are they able to make those profits by not risking a great deal of the fund?I do remember the credit many gave them making 3.5-5% by their last months’ so-called logical,low risk trading.
3-The most important factor that affects my current feelings on them is whether Paul just did not tell us the truth about the funds being seized or made up those “lies” regarding enormous problems NSFG encountered in the last 7-8 months?
So I would say:
a)If you know any place more reliable in regards to the aspects mentioned above(= being more trustworthy and making more monthly gains),why even hesitate to pull out?
b)If other available programs you know of,are worse (less transparent /more risky/making less) or even the same,why even hesitate to stay?
c)If you are like me who has a faint hope of recovery and also a fear of becoming more disappointed in the future,take out 50% and let the rest remain “IF POSSIBLE”.I doubt the possibility.
d)If you stay,don’t hope a good account balance for any time sooner than Beijing Olympic games
Some points must be considered:
1-Assuming a 70% loss,means they must produce 330% in order to make up our Sep balance.That would be equal to a 10% compounded monthly for about 14 months.Even an unrealistic expectation of a 20% per month needs about 8 months to reach there.
2-Look at their past performance,are they able to make those profits by not risking a great deal of the fund?I do remember the credit many gave them making 3.5-5% by their last months’ so-called logical,low risk trading.
3-The most important factor that affects my current feelings on them is whether Paul just did not tell us the truth about the funds being seized or made up those “lies” regarding enormous problems NSFG encountered in the last 7-8 months?
So I would say:
a)If you know any place more reliable in regards to the aspects mentioned above(= being more trustworthy and making more monthly gains),why even hesitate to pull out?
b)If other available programs you know of,are worse (less transparent /more risky/making less) or even the same,why even hesitate to stay?
c)If you are like me who has a faint hope of recovery and also a fear of becoming more disappointed in the future,take out 50% and let the rest remain “IF POSSIBLE”.I doubt the possibility.
d)If you stay,don’t hope a good account balance for any time sooner than Beijing Olympic games
Hi all:
I am considering withdrawing and accepting the 70% loss.
Why?
Well, at this stage the recovery strategy is to ‘trade’ back into the black. So, there may be merit in placing the remaining funds into a program that produces a higher ROI per month, thus beating NSFG’s recovery timeline.
BTW, i have not seen P&K consider the option of recovering the money from the Belgium authorities. that would be a quick fix to the equity balance and requires no trading.
cheers
Some of you obviously have trouble with reading comprehension. Belgian authorities? Try Danish. ROFLMAO Assuming he’s telling the truth, a big risk considering his deception as of late, Paul said the recovery of the pool would be aided by their trading efforts on a performance-fee-free basis IN ADDITION TO PROFITS DERIVED FROM THE MA ACCOUNTS. How quickly we will recover will depend upon how much of that 70% loss is forfeited by leaving members, the percentage of MA profits contributed by P & K, and how many MA members are left in the months to come. As for the veracity of the Danish funds seizure we are all awaiting for some promised closure on this issue. My fingers are crossed.
Of course I will take the 30%, I dont trust them anymore, and also to recover this 70% is very unlikely.
Good luck!
Wow, you guys are bumming!
I have some investments that went down the sh!tter too, but I got my 200 bucks out of NSFG before this big loss. I actually had $200 in, they had a loss, which brought it below $200, then they had a small gain which brought it back up to $200. When my balance went back up to $200, I took my money and got the hell out of there. Losers.
When did you deposit and withdraw your money jonk1969?
$100 to NSFG on March 11, 06
$100 to NSFG on March 19, 06
$201.46 received from NSFG on July 25, 06
$100 deposited on March 11, 06
$100 deposited on March 19, 06
$201.46 received on July 25, 06
Hey Jude - I’m in for only $100, so I’ll stay. If I had more at risk, I’d probably cash out.
- Greg
Consider yourself lucky you got out in time jonk1969. I’m one of those who helped, unknowingly, fund those who were leaving. I invested nearly $20k so I’m sure you can imagine how I’m feeling right now. Hopefully P & K aren’t going to try and bullshit us again. Like I said before I don’t really think they’re dumb enough to do so as some of us bigger investors will find our own solution to this mess…one that won’t meet with P & K’s approval. Anyone here in the big-deposit club?
ok, I’ll stay and hopefully there’ll be no more blunders from Beavis & Butthead…(oh I mean Paul & Ken)
“Consider yourself lucky.”
Not so fast there, Skeptical. I lost over 30K due to the Autosurf/Stormpay fiasco and the MPDW fiasco. (MPDW says they’re working on recovery, but it’s been over six months since they crashed, and I haven’t heard of one single bit of progress being made. They are total losers. I bet they’re using what’s left of our money to either trade with or put into some hyip and keep the money for themselves. Or even maybe they never had a loss, they’re just taking all the money we gave them, trading/putting it into hyips and keeping the profits for themselves.
Jonk1969 I wasn’t being negative towards you only making a statement. I actually applauded you for getting out in time. I only wish I did. As I report NSFG income, or lack thereof, I’m entitled to write off my massive loss
against gains I’m making in the penny stock arena. It could’ve been worse had I not been so meticulous in my record keeping. In this regard any gain, providing P & K haven’t taken the corporate jet to parts unknown, will be a bonus during the new year.