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Strategies & Market Trends : Banned.......Replies to the A@P thread. -- Ignore unavailable to you. Want to Upgrade?

To: Janice Shell who wrote (2221)	1/19/2005 10:22:37 PM
From: olivier asser	Read Replies (1) \| Respond to of 5425

That's the problem Janice. Because in effect Rea and TP giving the advice were a paid arm of the brokers Berber and Moor, I was getting advice from a de facto unlicensed broker, but the problem here is disclosure. If any of us had known that Rea/TP had these arrangements with Berber/Moor then we would never have paid him for the advice, would have known that the calls were made to generate commissions as their first goal, profitability bedamned. In the end, if you pay an IA for advice then you deserve the best advice he can give you in good-faith, if a call loses because of misjudgment of market conditions fair enough, there are risks in trading and investing, but the IA owes it to his client to disclose any and all arrangements that might conflict with his duty to you to deliver the product for which you paid: his best effort at reading the market. HGM earlier said you don't necessarily have to make the calls to be liable for the results. If you exert undue influence over them in another way then you're liable, as for example Berber and Moor are because they bribed Rea to make them, in plain language stole the advice from TP members for their own commission motives. For Berber and Moor to escape RICO liability there would have to be an intervening cause severing them "proximately" (legally) from the calls that caused the damages, but there is no intervening cause; the calls were a direct result of their pattern of bribery: without the kickbacks, we would have been given honest advice. In more ways than one, Rea was used by Berber and Moor. That's what they mean when they say RICO means "conducting the affairs of an enterprise through a pattern of racketeering activity." In this case, Berber and Moor conducted their commission-generating affairs through the legitimate enterprise TP through their monthly volume-based kickbacks to TP.