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Yes, I think you nailed it. The "scheme trades" were placed to recover the losses. However, if the trades were intentionally designed to generate the incentive fees, then the weight of evidence is definitely against her. The spread sheet described in Paragraph 3 is quite damaging to any...

Perhaps the strategy was sound, and she goofed by over leverage. The SEC doesn't give a damn about a trading strategy as long as there is proper disclosure. This case is regarding disclosure. She failed to properly disclose how she would collect incentive fees. Then she placed what the SEC...

It's a new filing, where the SEC has asked the court for a preliminary injunction and a jury trial, so it's very early in the game. Whatever is left in the account will have to be settled after the jury trial or if Karen makes a deal for restitution. Maybe she can provide a valid defense to...

You bring up an interesting point. I made a comment on the other thread regarding this structure. She paid half of her fees to a tax-exempt foundation, were SHE was president. That foundation had $10 million of assets, which were invested IN HER OWN HEDGE FUND, lol! So the fees she collected...

Yes, typical of any ponzi, some investors get out with a BANG, and others are left holding the BAG.

Upon further review, it seems her charity was actually structured as a tax exempt foundation in which she was president, lol! That foundation simply made grants to a charity...HER charity which she founded. Guess where the $10 million of assets of the foundation were being invested? In HER...

Not sure about how she feels, but it's an interesting case since she gave away 50% of her fees to a charity. The charity is named in the SEC complaint as a "relief defendant" but was obviously not charged since they played no role in the trading scheme. Regarding Tasty Trade, I'll bet the...

Yes, and the NFA conducted an audit in 2013, so obviously she was made aware of the convoluted trades. Also, having had 25 years of experience as a practicing CPA, her actions are more egregious. You can take big risks running a hedge fund, AND it's even acceptable to lose money. That's why...

Traders "blow up" all the time. It's fraud when a trader using investors' money fails to make proper disclosures on the losses. https://www.sec.gov/litigation/complaints/2016/comp-pr2016-98.pdf

"does anyone know the name of the fund or the person?" https://www.sec.gov/litigation/complaints/2016/comp-pr2016-98.pdf

lol, good one. I remember watching her interviews on YouTube and believed the results, so I guess I was duped by her incredible trading abilities. Perhaps she's an accomplished CPA with 25 years of experience, but that's no excuse to then mask the losses to her investors. What's more sad is...

You're exactly right, it was indeed a ponzi scheme. See complaint at paragraphs 105-108. https://www.sec.gov/litigation/complaints/2016/comp-pr2016-98.pdf The most revealing part of the ponzi is in paragraph 108, quoted below (emphasis of the ponzi in bold): "The manner by which the HI Fund...

The gullibility is also on the part of the main investor who didn't understand the calculation of how she booked profits. These are supposedly "sophisticated investors" as defined by SEC, and they have access to hedge fund attorneys who can evaluate the private placement memorandum BEFORE...

One of the more egregious elements of her deceptive scheme is in paragraph 97 (emphasis in bold): "For example, in October of 2014, Hope experienced massive trading losses as a result of volatility in the market. The HI Fund and the HDB Fund collectively ended the month with unrealized losses...

If you want to see exactly how she ran the scheme... https://www.sec.gov/litigation/complaints/2016/comp-pr2016-98.pdf

Ok, it seems they're being somewhat flexible with the rules. Perhaps the agenda is to build a database of traders and then pitch expensive education courses, who knows. I just can't see the model being profitable when they have such piker sized stop loss limits.

How do they expect anyone to "build equity" risking a mere 80 cents per trade, lol! Given the parameters, the answer to your thread's title is very simple. It's an emphatic "NO!"

Has anyone used a computer with Linux/Ubuntu for trading futures? I recently saw a thread with this firm mentioned (see link below). I'm looking for a new computer and wanted to know if such a system (non Windows 10) would work with various futures platforms. Any advice would be helpful...

Yes, and with FATCA and FBAR filings, the IRS is required to know of ANY bank or ANY asset you hold in your name worth over $10,000. Even if the foreign country doesn't tax the interest, the U.S. will. These are the list of countries that have agreed with the U.S. regarding FATCA...

I think form 2555 applies if you're actually working overseas (as in employment). If you have a trading account at TD Ameritrade, for example, and rent an apartment overseas where you place all of your trades, you would not qualify for that exemption. Otherwise, traders would simply take their...