12by12 program CLOSED

From 12by12 admin :

Hi Everybody,

This is the hardest update I have ever had to write. 12by12daily is now closed. I have done everything in my power to keep both sites operating, but, at the end of the day, if theres is no money coming in, then there is nothing to pay out. Since the launch of 12by12daily I have been working up to 18 hours a day 7 days a week to make this a success. Some of you will appreciate the effort I have put in, others will not. During that time, we have been subjected to some enormous obstacles. Right from day 1 we were subjected to extortion threats, which we did not bow down to. This resulted in our site being attacked by massive ddos attacks, which we were eventually able to repel. It also resulted in our database being totally corrupted due to my attempts to pay everybody for they days they had been unable to surf. We have still been unable to totally correct these errors. Worse than that, it also started a massive campaign of negativity in the forums, resulting in a lack of confidence, and complaints to egold, which saw my egold account blocked. We were able to get through these problems, and make 12by12daily a successful site for a time. Just when we thought we had things back on an even keel, it all started again. First we were hacked, and a number of members had their egold account numbers changed. This took a few days to sort out, but it was the beginning of the lack of confidence shown by members. I could have announced then, that we were in trouble, but I preferred to fix the problem, rather than aggravate it. I announced an increase in the maximum allowable upgrades, and a number of other positive signs about 12by12daily. This worked well for one day, until some unsupportive members announced to the world that we had a cashflow problem. Some others even emailed their downline telling them not to make any further upgrades. The action of these members was probably the single most influential factor in the downfall of 12by12daily. Many of you are familiar with what happens when there is a run on a bank, well the same thing happens in an autosurf program. I had to make changes in payout rules to protect us from that, which I did. This also had a positive effect for a few days, until we got hacked again. This time the hacker got away with a large sum of money. This in itself would not have been enough to bring us down, but it was followed up with another sabotage attempt, whereby we were bombarded with phoney upgrades for a period of about 4 days. Almost every member had at least one of these phoney upgrades added to their account, and by the time we got that problem solved, I could see the level of confidence decreasing by the day. From a position where we would have been able to save the site, Upgrades were becoming less and less each day, until they are now at virtually zero. I have continued to make payouts in that time, in the hope that it might turn around, and I will continue to make payouts over the next few hours, until there is nothing left in my egold account.

I am truly sorry about this situation. I am not a scammer, and I have not stolen and run away with your money. Every penny made from 12by12daily has been put back into the program to make payments, and to make some payments at dadndaves. I am a good person who has been hit with circumstances I cannot control. I believe the majority of members will understand this, and accept that I have done everything I could to keep the program going. There will be a rabble rousing minority who will not accept it, and will go screaming in the forums etc for revenge. If any of those members should be considering legal means to recoup any losses, I would remind them of the terms agreed to upon joining. (Relevant paragraphs printed below) Each member, upon joining ticked a box to say they had read and understood the terms and conditions. This constitutes a digital signature, which is then a legally binding document. If you still wish to pursue this avenue, then I should also tell you there is no money left. Every penny I have made from 12by12daily has been put back into the program,

In closing I would like to thank all the members that have supported me over the last couple of years. It is your support that has enabled me to continue as long as I have. I have been shattered by this, and it is highly unlikely that you will ever see me with an internet business again.

David

REPRINT OF RELEVANT TERMS AND CONDITIONS

Advertisers agree and understand that there is NO GUARANTEE OF EARNINGS WHATSOEVER, and 12by12daily makes no claims of potential earnings. 12by12daily IS NOT AN INVESTMENT OPPORTUNITY, and makes no claims to be such. We are an advertising company and as such deliver website traffic to our advertisers based upon the advertising package they purchase. 12by12daily reserves the right to alter, modify or discontinue any portion of our earnings program at anytime with or without notice.

Each Ad pack costs $6 per Ad Pack. Ad Pack purchases are not refundable under any circumstances. Any attempt to reverse or chargeback Ad Pack purchases will be grounds for deletion of your account.

You agree not to hold the operators and members of 12by12daily liable for any losses that you may incur.

DROI -so far so good

Alright ,is almost mid DEC 2006 and DROI is doing great.

They have overcome all of the obstacle and the progtrame are stable.Looks like they are
getting beter.

daily roi is about 2%

Good times to join in , and you get to compound daily.

They have fix most of the cept glithes.

Support is great.

UPDATE- 12by12 news for DEC 2006

Hi Everybody,
Let me apologise for the lack of communication over the last 48 hours. I have not been able to access the admin section of 12by12daily, This meant that I have been unable to process any payouts, and I have also been unable to send or receive emails.

FIRST ISSUE - NEW PAYOUT RULES

About a week or so ago I announced that we would now allow upgrades up to a maximum of $12,000. Supporters of 12by12daily saw this as a positive step,however a few detractors decided this meant that 12by12daily had a cashflow problem. By airing their views in public, they have done untold damage to 12by12daily, and whilst we did not have a cashflow problem at that time, things are getting a bit tight now. Up until now, I have resisted the advice of my team to introduce a 50/50 rule, as I believed there were enough supporters of the program to ensure that was not necessary. Unfortunately this was not the case, and we have a situation whereby members with large investments can make a $6 upgrade then take their money and run. This can no longer continue. As of now, if you wish to cashout you must have a member level equal to 50% of your cashout amount. I realise this is very short notice and some members may find it difficult, so I will bend the new rules slightly for som!
e members. If your upgrade expired on or before 24th November, and you do not qualify under the new rules, I will pay half of your cashout amount, and apply the other half to your account as a new free upgrade. These free upgrades will then need to be matched 100% in order to cash them out. (I will delay making payouts to those members for another 24 hours, in case they wish to upgrade, and therefore only need to match 50%) Upgrades expiring on the 25th or later will need to qualify under the new rules. I do apologise for any inconvenience caused to members by this sudden change, however, if we were to continue the way we were, the "hit and runners" would eventually destroy this opportunity. If you always upgrade with the same amount, or are using the 3x3x3 methond, these changes will not affect you. Whilst they may be unconfortable for some members, these rules will help 12by12daily to prosper for many months ahead, and in fact there is no good reason why it cannot las!
t forever.

Payouts will recommence as soon as I have sent this email, and the new rules should ensure that they gradually become earlier and earlier, back to where we were, instead of the current trend of later and later. members with 2 pendings who have reverted to free will not need to email me, as I will be adding the free members to the payout list, and I will be able to pick you up without the need for an email.

For those members who delight in posting negative things in the forums, remember, this is your program. We got through a period of negative forum posts in the beginning, when we had some problems, and we will get through this, and as before, come out even stronger on the other side. I would remind those members that they agreed to the following paragraph when they joined, and will have their accounts suspended or deleted if they continue.

You agree not to engage in conduct which will undermine the success of this program. Such conduct includes, but is not limited to spreading negative opinions of 12by12daily on forums, false advertising, false information or feedback posted on monitoring sites or other sites.


SECOND ISSUE - HACKERS

I believe we have the most secure autosurf site on the net. However one of the problems with being the biggest is that it creates a challenge for the lowlifes of this world, who feel it is quite okay to hack into websites and steal other peoples money. Almost daily we have people attempting to access our site, and in most cases we are able to thwart them. One guy, in particular, who I will grudgingly admit is very good at his craft, has been able to access the site on 3 occassions. The measures we have in place have been able to keep any damage caused by him to a minimum, but we have had to take the admin area offline for the last 2 days to further tighten our security. This is why I have been unable to process payouts, or send and receive emails in that time. We have been able to find an approximate location for this guy, and the FBI also have all the information and it is only a matter of time before we are able to pinpoint him, and prosecute. The main issue is th!
at he has been getting in through the banners file, and uploading some script that will change some members egold account numbers. This is also the reason that we have had major delays in fixing the accounts of those members who have used more than one egold account in the past. For some members, their first egold number is the correct one to pay to, but for others it is the last one. Our correction script will correct them all in one go, to either the first or last, but has no way of discerning which is the correct one. This has to be done manually. The banners have also been removed, as it is not possible to keep them, and block that security hole.



Thank you for listening, and your continued support.

David

My personal experience in Droi forum

Iam not happy with whats goin on in dr forum:x Mad
Lots of people money still didnt get transfer from the old to the new site and poor respond from James !! Mike did pop in here and there but didnt deal with the questions directly.

If this whole thing is a flop i guess we all learn a leson.. never brought over a failed programe and think that we can make it a great program.


Thats a no brainer business practice.

Thank God i only put in $59 as a rest spend

Well you guys make your own decision on this,i recomend that you put a test spend.

One think ive learn is, never jump into a program head on.Always check out the programe's forum to get a feel of whats going on there.

Forum is the best place to monitor a site.

EDITED :

OK i got this from cep coast forum,more highlight about droi

QUOTE :
" chevys wrote:
This guy named Mike is involved. I dont know anything about him other than what I have read and it seems some people never got paid from his older programs. He was on the conference call tonight. It seemed like they were trying to keep him behind the scenes a bit because his last name was never revealed.

Maybe somebody in here was part of the original daily roi could give us the whole story. Ive just picked up bits and pieces. Trying to move all those members is going to be a nightmare if that is what they intend on doing. Not too smart imo. They need to be paid out if they are owed money.


Answer :
Here is an answer to your question. I was part of the origianl DROI. As part of the original DROI in Jan I was always paid right on time. Then the stormpay mess hit and DROI (along with most autosurfs) had all their money taken away. Mike tried to launch a DROI egold only version right after the mess in the first week of Feb. When he relaunched he made the mistake of using the new egold upgrades from the relaunch to start refunding members from the old program thinking money would continue to flow in, well it didn't so he then had to stop paying on the relaunch. Meanwhile he was given a cease and desist order as part of the legal investigation of 12DP because he showed up on the radar because he had an ad on the 12DP site when it went under investigatin. So Mike had to stop all operations for the next 6 months until August. In August he launched again and paid out without problems for about 2 months. Then like most autosurf lately things started to get shaky with new upgrades, he tried introducing the 50% rule to help things out, people freaked so he got rid of the 50% rule. That brings us up to date. He is transferring balances over to the new site. The balances that are being transferred are very small compared to all the new money that has been coming in so it will not have much of an effect on the stability of the new DROI:PS

----Mike

END QUOTE

Daily ROI - Up and Coming

Heard that Daily ROI have join the rank of CEP family.I got this from CEP furom written by Logan QUOTE:

Mike is the original admin of DROI that opened back at the beginning of the year and later had to close due to the stormpay mess. Mike is now working together with James (co-admin of DROI) who has been sending out the email updates on the DROI launch. In one of the updates James said they have had long conversations with Trevor and Clayton regarding the upcoming launch of DROI to make sure they get it right. In that same update James left his phone # and invited people to call him if they have questions. Well, I did just that and here is a summary of what I found out

1) James is a close friend of Tevor from CEPcoast and is actually working with Trevor in helping to process the exchanges between CEP Trust and E-gold.

2) James said that they are currenty addressing the lack of presence of an admin to post updates and answer questions in the DROI forum.

3) The original closure of DROI back in February was indeed related to the stormpay mess and the funds were seized by stormpay so everyone lost due to circumstances beyond anyone's control.

4) He just finished an interview with Jake from ASA which will be on ASA's weekly broadcast tomorrow prior to the launch.

So based no my conversation with James and his apparent relations with Trevor and in working with him in processing CEPtrust transactions I am very encouraged by the legitimacy of the upcoming launch of DROI.

What would be nice is if Trevor could verify that he is indeed a close friend of James. Not that I would expect James to be giving out his cell phone # for people to call only to lie through his teeth about the whole thing. Its just that when you are dealing with the HYIP/Autosurf arena it never hurts to be extra careful. So Trevor your input wold be much appreciated.

Here is a email from CEP COAST:

Hi, Guys!
Wanted you to know that our mail server is now working. There were some e-mails and such (like the forgot password function) that were not working because of the error, but Clayton has now been able to fix it, and everything should be running smoothly there.

We have been asked about DailyROI over the last few days, and I would like to speak about them for a bit. We, CEP Coast, do not own DailyROI, but we are helping them out (coaching, etc), and the new admin, James, is a close friend whom I trust highly, and Mike, the other admin, has continually demonstrated his care for his members multiple times (including the stormpay fiasco last February...he paid each of his members back, and we appreciate that kind of dedication...as we did the same with CEP, our first program. ) DailyROI is not using our script, but they did mimick the working of our script (it is, however, their own script...we are not releasing our script to anyone in order to keep our site safe, though we are in the process of buying out a few other surfs and putting the current admins in as managers through our CEP Franchise movement. We will do the hosting and take care of all of the money aspects, and the managers take care of the day-to-day custo!
mer support responsibilities). Only surfs who use this business model will be around by this time next year, I am sure, as no other business model is stable. DailyROI is doing a great job thus far, and I do believe it to be a brand new beginning for them. Check them out when you can. You will see their site displayed in our rotator. The industry is finally in the process of stabilizing. Don

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Why you should make use of CEP Coast and make money

FOr the past weeks i have been monitoring CEP COAST and realise that not many people are aware of such a great potential to makes a great profits. Considering their good history background,good management skills and comunication. To know more about CEP background please goto 'cash link' at the right side.

What i want to say here is that the (private membership) CEP site which is a HYIP will be reopen to public in a near future.

I would like to quote from their REP cep coast forum,
QUOTE
" New Life Generation will be part of CEP membership when CEP re-opens. The owner, James, has invested much in CEP and CEP Coast. Through their program we will be investing with CEP funds into "brick and mortar" investments with stable earnings, which strengthens his program and CEP. Also remember that CEP and CEP Coast have a lot of money invested in each other; in this way they grow each other all the time. It make so much sense to invest in one business with your other business when you run both, and that's exactly what we're doing. It also makes everything REALLY stable, since anyone that invests in CEP makes CEP coast more stable, and vice versa. There's a lot of money going back and forth, growing itself as it goes. This is something you guys can feel really good about, as it makes the entire CEP family as stable as can be!" end quote.

Currently CEP is offlimits to the public,but they have a sister site called CEP COAST which is a advertising sites ,allowing members to buy advertising credits and to earn 130% profit sharing with the company.

Just to let you know whats going on inside CEP coast and their plans for the future,they are buying other surfs in the industry who are using the same business model as theirs ,that is variably daily percentage or profit sharing.

That is because CEP Coast started the model themself and don't want another program to use it that will eventually collapse through poor financial management; if that were to happen, people would inevitably think it's because the (new and therefore "unproven") business model failed. That would in turn hurt them, and i dont think CEP will let it happen.

What CEP intend to do is buying up other advertising program who are going to use the same model, allowing the managers to run them as before, and handling the money from them. (I forgot to mention that CEP owns a online payment system as well called CEP TRUST.)

Now i want to QUOTE from a reliable source

"1. They all would use only CEP Trust, which ensures the stability of their funds and the stability of their program. This will ensure that our business model is only used by sites where we know the admins are good folks, and we'll have control over the funds so we know it won't go under.

2. They are allowed to run the programs they built, which means they'll have a more stable version of the same program, plus our good name attached. They'll run their program with greater alacrity than ever before.

3. We have the money and the other surfs don't right now, so we'll "strike while the iron is hot" and buy out everyone else while we can.

This basically benefits them (stability), benefits us (growth), and benefits the industry (stability and growth). We will change the industry in this way. Everyone will see that it's our business model that's the best, and we'll help them run that model properly. We'll ensure the stability of their funds by managing them ourselves. We'll also have their income as well as our own to divide and multiply between our companies; we can pass forth money between the CEP businesses and the ones we buy, growing them both"

End quote

Well thats all about CEP and cep coast and if you want to join CEP COAST and profit from it click the banner below:



If you dont have a CEP TRUST account to fund your money,get a free account now by clicking the banner below:

NSFG Pool: what now?

Devilboy, never shy to voice his opinion, wrote an exceptionally clear article about NSFG's pool program and his thoughts on its future. I think he makes some excellent points and with his permission I will publish it on my website for all to see.

The NSFG pool can not survive this fuckup. There is no point in trying to keep it alive. Forums all over are going nuts - and the consensus is that NSFG can NEVER be trusted with a pool account again. As soon as they are allowed to, 100% of funds will be withdrawn from the pool and its tainted image will stay with it forever. There can never be a pool again. This much is clear.

Paul stated that they will do whatever they can to let the pool survive, but I don't see the point. They're not open to new investors (as per agreement with FeederFund) and they stated that they wanted to focus on the managed accounts anyway. And FeederFund is supposed to be the pool provider for them anyway - let FeederFund do their job and you guys focus on trading. Paul, if you don't agree with this you need to get your head out of your ass.

With that said, I've spent a lot of time thinking about what the fair thing is to do here. To understand my reasoning, here's a quick recap of what happened. Note that my numbers are not correct - they are just guesstimates based on info that Paul provided.

What Happened?

Let's say Alice had $100 in NSFG at the end of May. In June NSFG moved accounts to the new broker. In the process they had to move all the pool funds into a bank account, and move it all from there to the new broker. Unfortunately the Danish government seized those funds and NSFG only managed to move 30% of the total amount to the new broker.

Thus Alice actually only had $30 left, even though NSFG still reported it as $100 in the hopes of getting the rest of the money back from the government. That is a liquidity problem: the money is not gone but is not immediately accessible. Unfortunately it is now clear that this will not happen - NSFG has given up on getting anything back from the government. At this point it stopped being a liquidity issue. The money is gone. Paul still uses the words 'liquidity' when talking about the accounts but that is just bullshit. When he says they are at 30% liquidity, what he really means is that Alice's $100 has turned into $30.

Over the next 3 months they continued to trade, and people made withdrawals and added money to their accounts. This is where the irreversible damage occurred. Example: Let's say Alice decided to withdraw $50 in July. NSFG paid her $50 even though her actual account balance was only $30! Where did the extra $20 come from? Accounts from the other members. Alice just managed to make off with $20 of OUR MONEY! Yes, I'm pissed off about this.

The situation is even worse if you decided to add money to your account after July. In this case the reverse happened: You just contributed 70% of your deposit to fund people like Alice who decided to withdraw.

So right now Paul has stated that they want to keep the money for 3 months, and by trading and adding funds from their personal accounts try to get the accounts back up to about 70%. At that point everyone will withdraw everything and the pool will close (regardless of what Paul thinks). However the problem with this is that it's making us hostages, we don't get a say in the thing and it does not fix the inequalities I outlined above. Thus I am strongly opposed to this course of action.

So what can they do?

Two options present themselves:

1) Mark the accounts down to their real value immediately.

Apply the 70% loss and mark Alice's account as $30. Let people decide for themselves if they want to withdraw now or give you guys a chance to make it up. You don't need Bob's money to trade back Alice's account. If Bob wants to withdraw right now, let him! If Alice wants to let you guys trade back her missing $70, give HER the choice. It's all about choice and transparency.

2) Re-calculate the true values of everyone's accounts and pay them

Go back to June and apply the 70% loss at that point in time. This fixes the irregularities I explained earlier, but unfortunately it will cost NSFG some money.

Example: Alice had $100 in May and withdrew $50 in July. Apply the 70% loss in June and she now has $30. Take out the $50 withdrawal and she has a -$20 balance. Since you'll never get Alice to pay back the $20 her account now stands at $0.

Another example: Bob had $100 in May and added another $100 in July. Apply the 70% loss in June and he has $30 left. Add $100 in July and he now has $130. Profit for the 2 months was about 10% so that makes Bob's current balance $143.

Using plan 1) Alice's current account balance will be $15 and Bob's will be $60. I'll leave it to you guys to decide which is fairer.

Problem with plan 2), of course, is that Alice's missing $20 cannot be recovered from Alice and thus I would contend that it's NSFG's responsibility to make up that difference, since it's their incompetence that caused it in the first place.

Just fix it now!

That's enough ranting from me for today. I hope NSFG gets a fucking lawyer to get the pool money back from the government. If they don't I'll assume it was because the pool is in fact illegal. This is fine for me - many of the HYIP investments I'm involved in are not properly registered so I fully understand. Just don't try to tell me it's 100% legal without going to court to get that money back.

Peace out.

NSFG to mark down accounts and allow withdrawals afterall

Sorry this came abit late ,i got this from another blog.. here goes

“ While a vast majority of you have given your support in what needs to be done over the coming months, one problem did occur over and over again, and that was in respect to the lock-in period we applied last week.

Taking these comments on board I have decided that choice is indeed important. No one likes to be told what to do, and especially told what they can not do! To this end then we are going to open up for withdrawals at the end of this month and give you guys the choice of what you want to do.

This will work in the following way. First of all we must establish what the liquidity % is at the end of the month so we know where we all are.

What I will then do is reflect this in your statements, the only way I have of doing this is by showing it as a trading loss. I want to emphasize at this point that we will return the fund to 100% liquidity and that this balance will purely show what your account is currently valued at should you choose to withdraw and close at this point.

If you do decide to take this amount now, it WILL close your account as there will be no more money in your account if you take it out now.

For example:

If your account currently stands at $100 and the liquidity % is determined to be 30%, your account statement will show a balance of $30.
You have the option now of withdrawing this money (or part thereof) or not.
If you choose to take all $30, it would close your account with the Northsea Pool. ”

It is nice to see that Paul finally got the message and decided to cancel their earlier plans of a forced three month lock-in period. Our accounts will now show the true balance, which represents a major loss but at least it is real. Don't buy Paul's liquidity explanation, the money is gone... and it will take a long time to trade your new balance back to the level of the old one.

CEP Quick Update! Oct 25

Hi, Everyone! :-)

CEP Coast is doing fine, and everyone has been telling me how much they are enjoying the stability of the program and the guaranteed profits. :-) Some have asked a valid question, though. They want to know why the daily percent has been dropping recently. There are a few reasons, and I thought it would be nice to send a mass e-mail to all of you to help you understand the system just a little bit better. :-)

First, one of the major reasons the daily percent has lowered over the last 3 days is due to the large spike we had 4 days ago. We were averaging between 10 and 14 percent daily, and then we had an 18.94 percent day. In order to balance out that spike, the system will have a few lower percent days. You may remember the analogy of the stock market in the FAQ for describing our system. Our business model really is very close to that of the stock market, and--thus--it balances out the same ways. When one sees a spike in the market, the market often turns the other direction for a bit. That is just the way the market works. It balances itself out. :-) That is the same thing that is happening here. The daily percent is balancing itself out from the spike the other day.

The second main reason actually comes from our allowing you to cashout daily and roll it back in daily. ;-) Ad packs do not expire as quickly this way, and the total active ad packs, of course, affect the daily percent. That said, let me also note that the ability to cashout daily actually brings you more profit than a higher daily percent. ;-) People who were getting 14 percent and were cashing out once per week are making almost 1.5 times that profit at 6% and cashing out daily. That is definitely something worth mentioning. ;-) So, while the number may not look as impressive, it is actually earning more for you, and that is why we chose to do that. :-)

Lastly, some have recently noted that they do not believe we are earning them as much as the other surfs. On the contrary, because we payout daily, we are earning you more than they are.

For example, if you think of two popular equations in autosurfing right now, the 12 percent for 12 days and the 10 percent for 15 days, there is something important to note. These surfs do not pay for 7 business days (10 days) after your ad pack expires!

So, you may get 144%, but it is not in 12 days...it is really in 22 days (that comes to just 6.5 percent per day), and the 10 percent for 15 days is really 150 percent in 25 days (which comes to just 6.0 percent per day). And, of course, as noted, you can cashout daily at CEP Coast and roll it back in, which means you earn much more than 6 percent a day even if the daily percent is only 6 percent.

Fact is, you really are earning more at CEP Coast than you are at other surfs. They just do a good job of masking what you are really earning ;-)). Let me also point out that anything you earn from the previous day is already in the system. The money is guaranteed because it is right there, ready to be paid to you. ;-)

We are definitely different than other sites, so I wanted to make sure you understood the differences...and that you understood that the difference actually make us safer and more profitable than the other surfs. ;-) Hope that helps clear up the confusion that I know has been there recently.

It is ok to be confused.

We are a new system that no one has seen before. ;-) It will take some time to fully understand our business model and how it works (and how it protects you, our members :-)). Take care until next time, my friends! :-) Enjoy the profits and quality advertising! :-D

Trevor

NSFG Update - 17th October 2006

Paul - NSFG
More options Oct 17

Hello Everyone,



What I am about to say I something that I had hoped we would avoid, however circumstances have dictated that we must take action now, and that action is not going to be popular for some of you.



I will start at the beginning, many of you may remember way back when we first started we were using ACM in Switzerland as the broker for our Pool Account, and then switched over to FXCM in February so we could run the Managed Accounts.



The problem started when we took our money out of ACM, because of their strict Anti Money Laundering Regulations the money had to be returned to the account which was on file held with them. The account in question at that time was our old Danish Corporate Account. The money withdrew from ACM without a problem, however as soon as it hit the Danish Account, the Danish Financial Authorities were all over it.



Ken was called in by the Ministry of Finance to prove what this money was, which we promptly did. However this did not satisfy them and they refused to release the money in the account to us for onward transportation. After taking legal advice it was clear that we were not going to be getting this money back and the Ministry of Finance went so far as to say that they are keeping this money so that they would not charge Kenneth with breaching Financial Law in Denmark for the handling of other people’s money. In short we had no option but to accept their token offer and move forward.



After this and following the deposit of all the money that was at the time held in E-gold and the Cyprus Bank Account we were at a position of being at 50% liquidity.



We had two options at this point, we could either immediately reduce everyone's balance by 50% or trade back the difference through our own gains from trading to top the fund up. Obviously we choose the later.



We did in fact manage to successfully get the fund up to around 70-75% liquidity by putting our own money into the account from the trading returns…..and in hindsight it was here that we should have taken the measures that we now have no choice but to take. We did not however foresee the huge amount of withdrawals that would occur in the following months which have reduced us again to around 30% liquidity.



This is not a situation that can continue and to ensure that the fund remains liquid and here for the long term, we must take the following steps. These measures are probably not going to be popular with some of you, however they are required.



This is what we must do effective immediately.



1) Freeze all Balances as per the September Statements for the next 3 months

2) Suspend all Withdrawals – Pending and Future – for the next 3 months

3) Return all deposits made this month to their account of origin.



We are truly sorry if this does impact on you particularly if you have requested a withdraw in October, as the last thing that we wanted to do was cause people hardship. However we must do this for the long term stability of the fund for the coming years.



Many of you have already said to me that this is a necessary course of action and have understood the reasons for doing it. At the end of these three months we will be able to re-evaluate where we are again and look to move forward.



I would like to emphasize that if we do not take action now, then the entire fund could be in jeopardy of liquidizing over the course of a few months.



We are very truly sorry that we must do this, and are aware that this will tarnish our otherwise good reputation. The only good thing that we can say about this situation is that the trading has been good and we are not going anywhere, we have a substantial client base so we will get through this……we just wished we had jumped on it a little sooner than now!!



We are both very upset about having to do this, and aware that many of you will be disappointed in us getting to this position. I would like to thank many of you who are already aware of this and the understanding that you have shown.



This is costing us both personally a great deal of money as we have been depositing our own personal funds and trading commissions into the account to get the liquidity to a reasonable level, only for it to get back to this situation again. We however will continue to do this until this problem is resolved to the very best of our ability and use the coming months to get us back on track and moving forward.



In the years to come, this will just be a bump on the road, but it is one that we must cross now. After the 3 months have passed we will see where we are, until then Ken will continue to trade and we will be putting our own trading funds back into the fund to bolster it up.



I am sorry that I don’t have better news, and I am sorry if you have a pending withdrawal made this month.



Moving forward we had always planned to separate the Pool Account from Northsea more directly so that we could become FSA compliant and have already made investment into doing this. Over these three months we will further this goal so that the future will be far better for all and will keep you updated on the progress.



Yours,


Paul and Ken