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Exante VS...

18 December 2015

The third month of suffering for Exante and its clients ended. You can read about what has been happening in the last two months in the articles: The Black August and The Second Season of "Game of Thrones" in Exante.

Exante did a small withdraw (its clients) at the beginning of October. EAM Stocks&Derivatives Strategies hedge fund got only $32,000! I was waiting for this small amount for about 2 weeks although some clients got their money immediately. Exante’s back-office asked me to redo its common statement for withdraws money despite that I sent it many times before. After that Exante called to confirm the bank details of my hedge funds. It was dragging its feet. At this time the administrator APEX decided to zero out the assets of my hedge fund in Exante. The explanation of such decision was simple. If the hedge funds’ clients can’t get their money then such assets equal zero. I was really nervous because in this case I would have to close my hedge fund. If Exante would bring back all assets then such estimation would completely ruin the track-record of the hedge fund. I told manager Daniel about the problem. Daniel contacted me the execution director Gatis Eclitis. Gatis put himself right with me much but he didn’t say the date of payment of the assets. After our conversation, he sent to the administrator of the hedge fund the documents from Exante’s lawyers to solve the problem with estimation of the assets of the hedge fund EAM Stocks&Derivatives Strategies.

In October, the group of clients and I began to find the advocates in Malta. We sent some letters of inquiry and got some good offers for this case. The majority of advocates have heard about the Exante’s case because it was a notorious case for a small country like Malta. We decided to file a claim about an impairment of obligation to clients to deprive Exante of the license for a broker company.  Certainly we understand that to file a claim will not give us a chance to transfer  our assets quickly. However, we want to denote our assets for the SEC and the MFSA because we aren’t sure that Exante has made the full segregation of all clients’ accounts. When I contacted Exante about preparation for the court action, Gatis Eglitis called me to have meeting with me and others clients in Cyprus. Alexey Kirienko, CEO and the founder of Extante, and Gatis Eglitis, the execution director and shareholder, came to our meeting in October.

The meeting with Alexey and Gatis was on 15th of October in Cyprus. They told us about the story with SEC and their innocence. They managed to convince us that the company will soon solve the problem with the SEC. They explained that it is a mere misunderstanding. Exante was included in the list of the suspects by SEC because three clients from the this list were Exante’s clients some years ago. They promised us that we will not lose any a cent from our assets. Alexey and Gatis showed us the documents from the court which said that Exante and the SEC will have to submit the procedure about unfreezing assets of the innocent clients. According to this procedure, the SEC offered to check every client’s guilt by association using five items: type of security, period of trading, IP connection, and the two more which I forgot. In conclusion of our meeting, we agreed that if Exante doesn’t start to transfer our assets before the end of October, then Alexey Kirienko will send us the schedule of withdraw our money from November 01.

On the next day, 16th of October, when Alexey and Gatis flew back, the article was published about Exante in Malta’s newspaper: 

All criminal and civil allegations brought against Exante and its directors on the island have been dropped by the Maltese Attorney General and local government bodies, the company said in a statement.

The money laundering allegations which Exante rigorously defended from the outset eventually led to the temporary freezing of Exante’s accounts. Due to the recent decision all their accounts on the island are now fully operational as the company seeks to recover from what they considered sensationalized allegations.

"We were sure from the outset we would be cleared of all wrong doing,” stated Patrick J O Brien, Exante’s communication director. “We have been very transparent with the MFSA, our regulatory body, and were able to provide all documentation to all parties which proved the companies innocence on these matters”

Exante said it firmly believed that a lack of understanding on its business model were the main reason for the initial allegations and are still shocked and dismayed that no communication had been made with the company before the allegations became headline news.

“We would like now to continue doing, what we do best and are so thankful for the support both from our clients, local businesses and of course our staff,” Mr O’ Brien said.

 

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