Problem recovering my funds from Globus Trading LLC

When Team Trading folded, two traders organized a Yahoo group by posting messages on these boards, and many traders who they didn't have contact information for ended up joining the group (around 80+ traders, myself included).

If you do end up creating a Yahoo group then you can organize privately and discuss what steps to take in order to resolve your dispute with the firm.

The op mentioned class action. It depends on how many traders have been affected and what kind of money is at stake. Again, with Team Trading, approximately $2 million was owed among 500 traders. It was enough for a law firm to look into it, however they did not find any assets under the LLC or the owners' names, and thus did not pursue the case.

Another post mentioned the Ontario Securities Commission. While that's a good start, I'm not sure if the regulators will help you recover funds from an unregistered firm. However, they may look into the broker/dealers associated with Globus, so at least you may be able to locate where your funds were held.

If you are unable to collect directly from the owners or their brokers, then the cheapest route to take is small claims, but for that you'll need a correct address to file the official notice, and you'll probably need more proof than just some receipt you gave to the Montreal office. Team Trading had a very specific clause in their contract which clearly stated that 100% of any remaining deposit would be returned within 45 days of written notice. This was in plain black and white. Hopefully you have such a written agreement of some sort.

Many of us former Team Trading customers eventually got paid, however it was a collective effort and took about a year to resolve. Unfortunately, many did not and are still using their various options to resolve their individual claims.

So it really depends on how much time, energy and effort you are willing to put in, and whether you find enough traders who are in the same boat and can help you with the necessary legwork required.

For us it was not just about the money, it was a matter of principle. Most were owed less than $5k each, some even less, some a lot more, from 10k up to 80k. Trading is a tough business as it is, and we all lose money to the markets, but getting funds outright stolen is an entirely different matter.

Our attitude in the Yahoo group towards the owners of Team Trading was simple: You're not walking away from a $2 million dollar scam, file new LLC's in a different name, and expect people to just sit back and do nothing!
 
Quote from ScalperJoe:

When Team Trading folded, two traders organized a Yahoo group by posting messages on these boards, and many traders who they didn't have contact information for ended up joining the group (around 80+ traders, myself included).

If you do end up creating a Yahoo group then you can organize privately and discuss what steps to take in order to resolve your dispute with the firm.

The op mentioned class action. It depends on how many traders have been affected and what kind of money is at stake. Again, with Team Trading, approximately $2 million was owed among 500 traders. It was enough for a law firm to look into it, however they did not find any assets under the LLC or the owners' names, and thus did not pursue the case.

Another post mentioned the Ontario Securities Commission. While that's a good start, I'm not sure if the regulators will help you recover funds from an unregistered firm. However, they may look into the broker/dealers associated with Globus, so at least you may be able to locate where your funds were held.

If you are unable to collect directly from the owners or their brokers, then the cheapest route to take is small claims, but for that you'll need a correct address to file the official notice, and you'll probably need more proof than just some receipt you gave to the Montreal office. Team Trading had a very specific clause in their contract which clearly stated that 100% of any remaining deposit would be returned within 45 days of written notice. This was in plain black and white. Hopefully you have such a written agreement of some sort.

Many of us former Team Trading customers eventually got paid, however it was a collective effort and took about a year to resolve. Unfortunately, many did not and are still using their various options to resolve their individual claims.

So it really depends on how much time, energy and effort you are willing to put in, and whether you find enough traders who are in the same boat and can help you with the necessary legwork required.

For us it was not just about the money, it was a matter of principle. Most were owed less than $5k each, some even less, some a lot more, from 10k up to 80k. Trading is a tough business as it is, and we all lose money to the markets, but getting funds outright stolen is an entirely different matter.

Our attitude in the Yahoo group towards the owners of Team Trading was simple: You're not walking away from a $2 million dollar scam, file new LLC's in a different name, and expect people to just sit back and do nothing!
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Got an e-mail from a trader that sais he is owed by Globus a lot more than I am. He has knowledge of a couple more traders from different parts of Canada that are also owed. One of them supposedly is already pursuing more serious action.

Collectedly, from what he told me, not as much as the 2 mill you mention, but not a small amount either. Quantities vary from 50k to 3k. Seems he’s trying to get the group together to put up a common front.

The problem here is how much is Globus interested in protecting their reputation, seems not a hell of a lot. Like you say, it’s an unregulated business and they can just open a new LLC under a different name. I hope at least this thread will keep other traders from losing their money. The way they operate is by simulating everything is ok until you decide to close the account.

Like you say, trading is hard enough to be ripped off on top of that. And I agree, it’s not just about the money but the principle. I think Globus is betting on people owed small amount to find it very cumbersome and expensive to pursue the issue.

I appreciate your active involvement on the thread, it keeps it going, for whatever its worth.
 
Quote from traderefe:

Got an e-mail from a trader that sais he is owed by Globus a lot more than I am. He has knowledge of a couple more traders from different parts of Canada that are also owed. One of them supposedly is already pursuing more serious action.

Collectedly, from what he told me, not as much as the 2 mill you mention, but not a small amount either. Quantities vary from 50k to 3k. Seems he’s trying to get the group together to put up a common front.

The problem here is how much is Globus interested in protecting their reputation, seems not a hell of a lot. Like you say, it’s an unregulated business and they can just open a new LLC under a different name. I hope at least this thread will keep other traders from losing their money. The way they operate is by simulating everything is ok until you decide to close the account.

Like you say, trading is hard enough to be ripped off on top of that. And I agree, it’s not just about the money but the principle. I think Globus is betting on people owed small amount to find it very cumbersome and expensive to pursue the issue.

I appreciate your active involvement on the thread, it keeps it going, for whatever its worth.
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I'm having a "deja-vu" of the Team Trading debacle, lol. Yes, you're absolutely right, they will bet on people owed small amounts to do nothing. However, it's not very expensive when you consider all of your options:

1. Filing a complaint with the regulators doesn't cost anything. We filled out electronic forms on the SEC site, and started to receive confirmation emails and/or letters a week or two later. Some traders who filed claims early received phone calls and two hour interviews from the regulators. The problem is the regulators will never comment on any pending investigation, so it's a one-way street, you provide them everything, and they will give you nothing, unless and until they make an official claim against the firm.

2. Filing a state claim (or in your case, in the province) was just a matter of going online and filling out the form, then printing it out, making copies of all documents, and sending it via FedEx. We received boilerplate confirmation letters, although I did recieve a phone call from one of the senior investigators of the NY Attorney General's office about six months later. Once again, it's the same rule as SEC, you give them everything you can, and they give you nothing.

3. Private lawsuits and class actions are expensive, and probably not the best route for individuals.

4. In NY the time to file for small claims is 6 years, and to collect is 20 years, with a maximum claim for $5,000. It only costs $20 to file, plus the proof of registered letters to the defendants. Check with your province on the terms of a small claims case.

Small claims in my opinion is by far the most realistic option, especially for those with smaller balances.

Like I posted earlier, if you organize a group, then you can discuss privately on how to best resolve your dispute. If the owners have an ounce of integrity, then you'll hear from them eventually.
 
Quote from ScalperJoe:

I'm having a "deja-vu" of the Team Trading debacle, lol. Yes, you're absolutely right, they will bet on people owed small amounts to do nothing. However, it's not very expensive when you consider all of your options:

1. Filing a complaint with the regulators doesn't cost anything. We filled out electronic forms on the SEC site, and started to receive confirmation emails and/or letters a week or two later. Some traders who filed claims early received phone calls and two hour interviews from the regulators. The problem is the regulators will never comment on any pending investigation, so it's a one-way street, you provide them everything, and they will give you nothing, unless and until they make an official claim against the firm.

2. Filing a state claim (or in your case, in the province) was just a matter of going online and filling out the form, then printing it out, making copies of all documents, and sending it via FedEx. We received boilerplate confirmation letters, although I did recieve a phone call from one of the senior investigators of the NY Attorney General's office about six months later. Once again, it's the same rule as SEC, you give them everything you can, and they give you nothing.

3. Private lawsuits and class actions are expensive, and probably not the best route for individuals.

4. In NY the time to file for small claims is 6 years, and to collect is 20 years, with a maximum claim for $5,000. It only costs $20 to file, plus the proof of registered letters to the defendants. Check with your province on the terms of a small claims case.

Small claims in my opinion is by far the most realistic option, especially for those with smaller balances.

Like I posted earlier, if you organize a group, then you can discuss privately on how to best resolve your dispute. If the owners have an ounce of integrity, then you'll hear from them eventually.
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I got a couple of immediate actions I can take that were recommended by a friend lawyer of mine.

First to file a complaint with the BBB, see what they respond and create an antecedent. A trader contacted me by e-mail saying he’s on the same boat, so I asked him to also place a complaint in the BBB, the more the better, but checked the cite and no complaint filed yet.

The next step would be to report them to the antifraud division of the RCMP, and also to look into small claims court, like you say.
 
When you sue in Small Claims Court, name every individual you have dealt with or are aware of as a separate defendant.

This costs a few dollars extra but is worth it because one of them may have some assets.

If some do not file defenses promptly, you can move for immediate judgment against them.

Even though you are in Quebec, it is probably best suing in Ontario, since most of the assets will be there, unless you think you can more likely collect against the Quebec individuals that are involved. You can do it by mail. You would have to go to Toronto for the eventual trial if there ever is one.

You need to act right away before all of the assets are gone.
 
it sounds terrible. It happened to me once when dealing with an idiot in Toronto (but i eventually recovered my remaining deposit, around 1k). good luck and be wise next time around
 
Seems Globus is in serious trouble. Heard from a trader that they have been going around asking other prop firms for capital and been denied. This is not good for me but worse for the people owed a lot more than me, or if you're still trading with them, kiss the yaya good by.
 
Quote from blueraincap:

what really happened
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Who knows, a tader went bust, spent more than came in, the market is crazy and trader are not making as much, many reasons why a company can go bust, the point is he's not paying.
 
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