Great News from Robb Evans

This is what we have today. Yay.. !
Finally our clients will get all their money back.

ROBB EVANS & ASSOCIATES, LLC Receiver of Forex Liquidity LLC 11450 Sheldon Street Sun Valley, California 91352-1121 Telephone No.: 818 768-8100 Facsimile No.: 818 768-8802

August 4, 2008 NOTICE TO NON-FX ASIA CUSTOMERS This message is to inform you that Robb Evans and Associates LLC, the receiver of Forex Liquidity LCC, has entered into an agreement to transfer all the accounts, which are not part of the FX Asia accounts, to Global Futures & Forex, Ltd. (GFT). This transfer was approved by United States District Court, Central District of California. You will receive information regarding GFT on August 5, 2008 and additional information regarding your account at the time of the transfer on August 6th, 2008. Once the transfer is completed, everything regarding your account will be serviced by GFT, a financially stable FCM registered with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA). In addition, GFT is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Financial Supervisory Agency (FSA) in Japan, and the Financial Services Authority (FSA) in the United Kingdom. Please note that GFT will be in contact with you about your trading account transfer, including accessing your funds, which will be available for either trading activities or withdrawal. Updates and information will be available from GFT via online at http://www.gftforex.com/trade as well as via a special toll-free hotline 1.888.694.0011; international customers call 616.956.6423. For additional information about the receivership in the CFTC v. Forex Liquidity LLC case or the Court approved orders, please refer to the receiver’s website at http://www.robbevans.com/html/forexlq.html. Thank you, Robb Evans & Associates LLC

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FXLQ New News Out

Another news’ been out today. A fellow (Nickname TripTrap) in the FF forum has just posted Lillian’s reply to his mails.

The Receiver just filed the 2nd report with the Court this week. Below please find the link to our report:

http://www.robbevans.com/pdf/forexlqreport02.pdf

We are filing the motion for the distributions with the Court in a very near future. Once the Court approves our motion, distribution can be made. The hearing date will most likely be scheduled on July 14th. As required by law, the hearing for the motion is required to be scheduled within a reasonable timeline from the time the motion is filed to allow all parties to have a chance to review/oppose to the motion. Therefore, if we file the report in mid-June, the earliest the Court can approve the motion would be somewhere around mid-July.

Very truly yours,

Lillian Lee
Deputy to the Receiver

And there’s also another additional answers from Lillian:

Lillian,

Thank you for the fast reply and all the news!

Do you think it is likely for those that have claims will oppose the motion to distribute funds delaying us even more? Also, how long in these cases does it generally take for the checks to be sent out to the customers once the court approves of the motion?

Sincerely,

———————————————————————————————————-,

I really do not know who will oppose to our motion or how the Court will decide at this point. The possible parties who may oppose to the motion would be FXLQ’s shareholders, mainly Mr. Gray, brokers and creditors (as they won’t receive 100% of their claims, at least not now). Let’s hope that it will not affect the Court’s approval for the distribution to customers.

Based on our other cases, typically the distribution can be made within few weeks (many times within a week) from the Court’s approval.

Regards,
Lillian Lee
Deputy to the Receiver

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Receiver’s Notice to Customers of FXLQ

Here’s an update on the case:

On March 31, 2008 the Commodity Futures Trading Commission (CFTC) filed an unopposed motion with the United States District Court to extend the March 31, 2008 deadline for FXLQ to reply to the CFTC’s complaint by 60 days or until May 30, 2008. The United States District Court granted the motion on April 2, 2008.

This proposed extension does not affect the Receiver’s intentions to make a recommendation to the United States District Court for an interim distribution to FXLQ’s customers within 60 days.

Visit the receiver’s FXLQ pages.

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FXLQ Update: Retail Clients Have Priority

A buddy in the Forexfactory Forum posted today an update in a thread regarding the FXLQ crisis.

I spoke to a lady at the receiver law firm. They are awaiting FXLQ and other associated parties for responses, by February 15th.

Then, they will await until March 31st until they make any formal recommendations to the judge… as FXLQ may file for appeal or settle something with CFTC by then. FXLQ has $26million in cash, and $30million in liability. They need to get $6 million to be back in business… a seemingly trivial sum of cash in this business and to meet excess fund requirements.

If in fact there is dissolution, they will recommend that retail clients have priority.

Funds will be returned within two months of March 31st….

This has been a nice indication that trading with a regulated broker, even if it’s an OTC kind of market, still is a wise choice. In an event like this, clients have a proper protection. But we’ll need to wait for another 3 months to get this premise be proven completely.

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FXLQ Update: Waiting for January 28

According to this latest press release regarding the case in CFTC’s website (January 10), the hearing would be at January 28, 2008.

…the CFTC filed an ex parte motion seeking an order imposing a blanket freeze on FXLQ’s assets, ensuring access to FXLQ’s books and records by representatives of the Commission, and appointing a temporary receiver to marshal FXLQ’s assets. The Court granted this motion and entered a statutory restraining order (SRO). The Court then scheduled a hearing for January 4, 2008 to allow the Defendant to show cause why the SRO should not remain in place and why a preliminary injunction should not be entered finding that FXLQ violated the CEA, and ordering FXLQ not to violate the CEA. Recently, the show cause hearing was rescheduled to January 28, 2008.

It would be next week. In the meantime, the court has orderd that the assets to be under the control of the Court-appointed Receiver Robb Evans & Associates LLC. The Receiver will post the most current information at http://www.robbevans.com/html/forexlq.html.

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FXLQ Update: $8 Million of Incoming Funds

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In a pdf file found in CFTC website (court complaint details document), it is stated that the deficit is now only a $3 million (as of December 13, 2007). This means that a nearly $8 million were coming during the period between Dec 7 to Dec 13. And still several days before the hearing on Jan 4, 2008.
Good luck to us

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FXLQ’s Numbers from CFTC

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CFTC’s number: as of December 7, the adjusted net capital deficit is $11.6.
But, according to several clients who contacted FXLQ for updates on the situation, there has been several million dollars incoming wires into FXLQ’s account at US banks/FCM since the MRA took place. We don’t have any numbers on how many millions they are actually.

Here is the complete copy of the press release on December 19, 2007:

Release: 5426-07
For Release: December 19, 2007

CFTC Sues Futures Commission Merchant Forex Liquidity LLC Alleging Undercapitalization in Excess of $11.6 Million

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that on December 13, 2007, it sued Forex Liquidity LLC (Forex Liquidity), a registered Futures Commission Merchant (FCM) in Santa Ana, California, charging it with being undercapitalized in excess of $11.6 million and also with failing to maintain required books and records.

On December 14, 2007, the CFTC won an asset freeze and other emergency relief that will enable the Commission to freeze the remaining assets of Forex Liquidity and safeguard the interests of its customers.

According to the CFTC complaint, as of November 30, 2007, and perhaps earlier, Forex Liquidity’s net capitalization was below the minimum required by the Commission. As a Forex Dealer Member of the National Futures Association (NFA) offering to be the counterparty to retail customer foreign currency transactions, Forex Liquidity is required to have a minimum adjusted net capital of $1 million; instead, according to the complaint, as of December 7, 2007, it had an adjusted net capital deficit of approximately $11.6 million.

Forex Liquidity is also alleged to have been unable to produce required financial documentation regarding its assets and liabilities. For example, according to the CFTC’s complaint, Forex Liquidity represented in reports and discussions with NFA that its assets at one time included a $35 million ABN-AMRO bond located in Switzerland. The complaint further alleges that Forex Liquidity represented to the NFA that the ABN-AMRO bond (or its proceeds) were transferred to a U.S. registered broker dealer, Commonwealth Financial Network (CFN); however, CFN does not have an account for Forex Liquidity and the account number that the defendant provided to NFA was fictitious.

Accordingly, the CFTC also charged Forex Liquidity with failure to maintain books and records of its business transactions, specifically, current ledgers that accurately reflect its assets and liabilities.

In the ongoing action in the U.S. District Court for the Central District of California, the CFTC seeks an order of permanent injunction against the defendant, monetary penalties, and other relief. The Honorable Cormac J. Carney, U.S. District Judge, issued the restraining order freezing the assets of Forex Liquidity and prohibiting the defendant from destroying documents or denying CFTC staff access to books and records.

The CFTC appreciates the assistance of the National Futures Association in this action.

The following CFTC Division of Enforcement staff members are responsible for this matter: Peter Haas, Richard Foelber, Paul Hayeck, and Joan Manley.
Last Updated: December 19, 2007

Hopefully, we’ll get more facts in the hearing scheduled for January 4, 2008. If they’re good numbers, some other FCMs might be interested in buying the business. In that case, an approximately 1 month would be needed to complete the whole process and we’ll be able to resume trading on our clients’ accounts.

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FXLQ: Important Notice 12/18/2007

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Here is an email FXLQ sent to our client.
We’ll be waiting for the hearing in the District Court on January 4, 2008.

Tuesday, December 18, 2007
RE: Account # 1xxxx

To our Valued Clients:

We have temporarily suspended operations due to a Commodity Futures Trading Commission lawsuit filed against the company in Federal Court. Please be assured that as soon as we are able, we will return any messages.

There is a hearing in the U.S. District Court scheduled for January 4, 2008 where we hope to resolve all issues the CFTC has with our company.

Thank you,

Forex Liquidity LLC

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Recent Discussion and Rumors on FXLQ

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Some interesting ongoing discussions in FF Forum, at page 3, page 4, and 5 of a thread regarding the recent MRA to FXLQ.
Some points in the discussion:

• This is not another Refco. This one is very different. Not a bankruptcy story.
• Client’s funds are in separated bank account. The amount is sufficient to cover all client’s withdrawal request, but the NFA wants to see available cash in the amount that’s exceeding all company’s liabilities before approving distributions.
• Executives of FXLQ are said to be doing their best to pull in all of their funds located off shore. Several incoming wire in multi million dollars were done, and still more to come to meet NFA’s requirement.
• Obviously, NFA has a certain agenda. The request to pull in all funds to US-banks was on Monday, and the MRA took place the day after (Tuesday). Everybody knows that repatriating millions of dollars especially if a large sum of them are in the form of bonds is not a one-day procedure.

Still, all we can do is just wait for things to unfold and observe any news and rumors. lol.
Anybody wants some beers?

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Dealers are Still Doing Their Job

We have just received this notification regarding automatic rollover of open position.
Although we have been inactivating our robots since we received the MRA news on December 4, it is good to know that their dealers are still doing their job.

Wednesday, December 05, 2007
RE: Account # 1XXXX

Dear Valued Client:

Please be reminded that your FXLQ Customer Agreement provides for automatic rollover of positions which are not closed during the course of a trading day.

Due to the recent Member Responsibility Action issued by National Futures Association, we are requesting that all clients inform us immediately if they wish to revoke this ongoing assent to automatic rollovers.

If you choose to revoke this ongoing assent to automatically rollover positions, they will be liquidated at market at the end of the trading day, unless you contact us each day to direct us to rollover your open positions during the trading day.

Best Regards,
Forex Liquidity LLC

And up to now, the MT4 client platform is still well connected to FXLQ server, providing live quotes uninteruptably, and the balance of our clients’ funds are still the same as it were.
Maybe they haven’t processed our wd requests yet, but all these facts add more confidence regarding the safety of the funds.

More updates later.

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Need Some Fresh Air

We have just received an update from our contact. It is said that there are two NFA officers in FXLQ’s office today, supervising the process of fund withdrawals to make sure it goes properly. This should add more confidence for a clean finish on this matter.
I need some fresh air. Still holding my breath, tho..

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The Coldest Winter in Chicago

Perhaps it’s the coldest one. Because i can even feel it from here when having this conversation with my contact. I hope things are going well.

Darma: dear P, if you hear any news pls let us know. thanks
P: I will
P: did you send the form?
Darma: yes we have sent the form
Darma: in the case document, i saw this that makes me worry:
“FXLQ is prohibited from distributing, disbursing or transferring any
funds, including to existing customers, without the prior approval of
NFA.”
P: You should have the funds in 3 days
P: from today
Darma: wouldn’t be any delay because of the need for NFA approval for each transfer of money?
P: I don’t think so
P: your money is seperate from the firms money
Darma: and P.. I and my client still trust you. if you have any suggestion on brokers we should choose, pls advice
P: ok , thank you
P: I’m sorry about what happened
P: I will call FXLQ again later
Darma: thank you. i hope we wont get any delays.
Darma: this makes me nervous, actually
P: there shouldn’t be
P: I’ll call later
Darma: you know better the regulation and the situation there.
Darma: yes, please let me know anything you can get.
P: it also happened to One World Forex
Darma: btw, how are you? it is winter there, isnt it?
P: they are cracking down
P: yes
P: COLD
P: I don’t like the cold
P: how about you?
Darma: do you have plan for christmas or new year?
P: no
Darma: im fine, except with this fxlq thing. my multifinance business is going well. as well as the chemicals
P: not yet
P: good for you
P: I need to shower now
Darma: ok P.. good luck to us!
P: you’ll be fine
P: I’ll call them later
P: and make sure
Darma: ok thank you
Darma: thanks.

I prefer spring over winter

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FXLQ notification

We have just received this notification letter from FXLQ.
I immediately discussed it with our clients and we decided to send a withdrawal request.
The completed forms have been sent several hours ago, and we’ll see hows it gonna be.
Wish us luck!

Tuesday, December 04, 2007
RE: Account # 1XXXX

To our Valued Clients:

The National Futures Association has today issued a Member Responsibility Action against FXLQ. You can find the notice on the NFA’s website: http://www.nfa.futures.org/basicnet/Details.aspx?entityid=0362216&rn=Y.

Effective immediately, FXLQ is not allowed to take on any new customer positions. Therefore, all of our systems have been set to allow only rollover and liquidations.

We apologize for any inconvenience this has caused, and direct you to our website if you wish to withdraw your funds: www.fxlq.com/docs.

We are working diligently to clear this up as quickly as possible and look forward to renewing a full relationship with our customers.

Sincerely,

Robert Gray
President
Forex Liquidity LLC

And now we need to find a good UK-based MT4 broker to tap our robots in.

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