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The second season “Games of Thrones” in Exante

08 October 2015

Since September, Exante’s case has moved like in a series “Games of Thrones”.

Let’s remember what happened in the last season of this “fascinating series”.

The SEC (Security Exchange Commission) froze the assets of the Exante’s clients, claimed the broker company as a defendant in the case with insider trading for the amount $100 million. American investigators estimate Exante could have made in excess of $24 million through the scam over the past five years. The company disputes these statements and explains: “The SEC has assumed that we are a ‘hedge fund’ and that we were making these trades for our own benefit. The reality – which is very easy to prove from our MFSA license and our audited financial reports – is that we are an executing broker”. Part of the SEC’s case is based on the fact that an IP address that turned up during their investigations was used by one of the Exante partners – but Mr Eglitis said that this address was the public Wi-Fi at Riga airport and it meant nothing more than someone using internet at the same airport within a few months of other defendants. Exante has freely admitted that some of its customers may have been implicated in the case similarly to clients of other brokerage companies listed in the case. The US District Court in Newark has indicated that it would be willing to release the assets in the frozen accounts within a few weeks “following the receipt of additional consistent information establishing that the assets’ owners are unrelated to the alleged illicit trading scheme”. So far, Exante’s legal representative found that only a few Exante customers were involved in the alleged illicit trades, and that 99.9 per cent of the assets in Exante’s frozen accounts bear no connection to any of the defendants identified in the complaint. It also noted that 92 of the 102 customers whose assets were frozen never traded in any American securities during the period being investigated.

All these events happened in August and September. In September I called to an executive director Exante Vladimir Maslyakov. In each of our phone conversations he finished his explanation that Exante’s advocates did not give any information. And often he was telling me nervously to go to their office and demand an explanation from the CEO and advocates, but if they didn’t give him the explanation then he would help the clients with complaints about Exante. In his words the situation was complicated since the CEO Alexey Kirienko is not the client- oriented person and he often claims: If somebody doesn’t like his management then he would convene a board of directors to reelect him. In such case the change of the CEO may redouble the situation – said Maslyakov. After that the manager Danil entered into a “Games of Thrones”. He began working together with Maslyakov. Part of information from advocates communicated from Danil and other from Vladimir. Also, Vladimir couldn’t go the office, which seemed strange for me. One day I opened the Exante’s website and didn’t find in the team the information about Vladimir. Now Danil realizes all contacts with clients. Danila is talking without nervous and defends Exante. Therefore, if Exante solve all its problems with SEC, then Danil will be a top-manager of the company. In the middle of September, Exante’s management asked its clients to submit a petition for the SEC to defreeze their assets. In exchange for the petition, Exante gave back 10% from assets to each client and explained that in spite of this case the clients continue to open the broker accounts and transfer money to the new accounts. After that Exante has not given back money. I was waiting two weeks and hearing every day that the SEC got all necessary documents to prove their innocence. I decided to come into the operation. First, I explored a procedure for complaint in the web-site Malta Financial Service Authority (MFSA). Secondly, I lodged a complaint to Exante and some days after sent the complaint to the MFSA. When I sent the complaint, Danil called me and said that in their case happened during a crucial moment and they were waiting for the SEC to unfreeze the assets of clients for 2 weeks. I was skeptical about this information and proposed that I would file a lawsuit in the Malta court to help Exante prove the innocence its clients. Such activity can help to show the SEC and the MFSA that Exante has real clients because Daniel said that they have some doubt in the reality of Exante’s clients. So, I created a group of Exante’s clients to file the lawsuit in the Malta court. We are looking for the advocates in Malta. If our assets are not frozen in the middle of October we will prove our innocence in the Malta court. 

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