FF Update
FF, one of the oldest high yield investment pools has gone near bankrupt when the U.S. government indicted E-gold and froze money from most of the largest account holders. Many investors who had stakes there can do no more than mourn there loss and hope for a slight compensation. FF has always dealt in an honest and straightforward way when hit by calamity. This time again, they were completely transparent toward their membership, and have arranged to compensate the membership using remaining funds. Would this be the symbolic downfall of the high yield arena?
… The court case reference was the same USA vs E-gold indictment that allows for the forfeiture of E-gold assets by the US government for specifically the operation of any unlicenced exchange operation or any unlicenced investment.
There is not the slightest hope of recovering this money. This action is not an injunction, it is a forfeiture (confiscation) of e-gold assets. The principal targets were the large exchangers, namely 1mdc, Icegold and Omnipay but dozens of large accounts have also been seized. We understand that the US government has already forced E-gold to pay them $11-15 million by exchanging this amount of gold associated with the forfeitures. For any hope of this money to be returned, E-gold would have to be found innocent and despite that being the case, this is not the outcome that will prevail through the courts, in our opinion.
This situation means the almost total ruin of #FF# and there is absolutely no way that it can either try and recover these losses or on the otherhand, make any further offering with such potential legal issues surrounding it. It is an extremely sad and disappointing end, especially as we had made significant inroads to finding very profitable and stable regulated opportunities. We had high hopes for #FF# but ultimately it has failed for many reasons, some within our control and others beyond it. We know many Members will be very angry and upset that it has come to this, but there is little more to do apart from liquidate the remaining assets and move on with life.
Source: FF (real name of the program is kept private for security reasons)
2 responses so far ↓
HYIP: Playing It Right // June 16, 2007 at 18:58 |
Mention anything that could lead to High Yield Investment Programs and people will listen. There are good HYIP’s and there are bad. Anything that is good has always attracted the wrong people.
HYIP’s has been around for so long coming in different names and guises but no matter what, it has not …
LRHyip // January 31, 2008 at 14:13 |
I dont have to much confidence left in E-gold nowadays.. Thy block accounts on daily bassis , ask for documents to be send or even DELETE accounts without paying you the balance..
And guess what .per their terms they have the right to do it:
” 4.6. Right of Association Issuer reserves the right to refuse service to particular individuals or entities, at its sole discretion, with or without cause.”
Read a story on my blog on how a guy got his account frozen with $5500 inside
http://blog.lrhyip.com/payments/e-gold-blocked-account-with-5500-inside/