Another recent Hold Brothers red flag:
http://www.sec.gov/litigation/litreleases/2014/lr23143.htm
I think you'd be crazy to even affiliate with them let alone send them any capital.
Interesting that they DID pay the first installment of over $500k, and they DID pay their Class B members (see item 31 in the complaint, link below).
However, I'm not sure you're aware that Hold Brothers has TWO companies, Hold Brothers Online Investment Services ("Hold Brothers") and Hold Brothers Capital, LLC. The complaint deals with the FINRA firm (now terminated). The licensed Series 56 prop traders are members of Hold Brothers Capital,
not Hold Brothers, which is the firm mentioned in the SEC complaint. Also, if you do a FINRA broker check, it clearly says that Hold Brothers does not owe any customers any money. In other words, customers got their money back, and Hold Brothers also paid $1.4 million to twenty three Class B traders who had equity stakes in Hold Brothers.
I guess the SEC still wants the remaining $2 million in fines that Hold Brothers agreed to pay in the settlement. Maybe they get it eventually, maybe not. When you look at damages, who really suffered as a result of their "spoofing" activities? The SEC? The exchanges? Gimme a break!
Here's a suggestion for the SEC: if you end up getting the remaining $2 million out of the Hold Brothers, then maybe you can do your jobs, and provide relief to those who suffered
REAL damages, the former Team Trading traders, many who never got their money back.
http://www.sec.gov/litigation/complaints/2014/comp23143.pdf
