Oceanside Forex: Broker Jones Rides Again

[GlimDropper]

oceansideforex.com
oceansidenetwork.com

Justin "Broker" Jones spent several years as a friend and confidant to the Jake Amedee's and Ken Russo's of the ponzi and HYIP world but much like all the programs they promoted, their relationships didn't last and Broker went on to denounce (some of) his former associates and embarked on a career in the honest and ethical world of multi-level marketing. The time line is a bit hazy and Broker Jones (henceforth BJ) seems to have deleted as much of the history as possible but it doesn't appear that there was any one "come to Jesus" moment when BJ left his ponzi past behind to embrace the "lotions and potions" of the MLM world, there clearly was some overlap. But with his past behind him, he is a respected network marketer and now he is part owner of (yet another) offshore pooled Forex program.

BJ and his principle partner Justin (JD) Kaiser have a "black box forex robot" that, in their words, "... There aren't 50 people on this planet that are able to produce the returns that we are." They also claim that the people who programed this "robot" were offered "well over" 100 million for it (elsewhere a claim 1 billion is made) but they decided instead to let BJ and JD open up an Alertpay account to receive the funds from all the "little guys" who their investment program is meant to help. They are currently incorporated in the Nevis Islands but are telling people that they're setting up their own "bankcorp" in New Zealand.

They are, of course completely unlicensed and unregistered, but they cite Section 4(2) of the Securities Act and rule 506 to claim some form of blanket exemption from regulation. They seem to believe that a "sophisticated investor" is anyone who signs a form saying they are one and that no matter how many websites, blogs and webinars they use to advertise their program they are still making a "private offering." Why they feel their supposed ability to skirt the laws intended to protect their investors is some form of selling point for their program is as of yet, an unanswered question.

Their "official" website names $50,000 as the minimum amount needed to open an account with them, but their blogs and webinars explain how you can join with as little as $250. OceansideNetwork is the now abandoned MLM aspect of their program which once claimed that if you could recruit enough $250 (and $27/month) members, you could get your own $250 spot for just the $27/month. BJ and JD seem to differ on the reasons for abandoning their MLM program but the $27/month (plus a % of the profits) seems to still be the monthly fee.

Their Performance page has an interesting little glitch, after claiming monthly results of +5.13%, +8%, +4.1% and +6.4 we hit last February with their first down month (-8.12%) followed by no results at all for the month of March. Their official explanation for this is:

Due to the situation that occured with an unexpected server switch, our trades were reset back to the date of February 25th and as a result the performance for the month of March was neutralized.

Therefore, there were no profits or losses.

All trades and positions that were opened and closed in the month of March literally do not exist. The Broker absorbed the losses in order to serve

O C E A N S I D E in the best customer service possible.

I'm not sure what to make of that, most of these "programs" don't start blaming servers or Russian hackers until they need to come up with excuses why payout requests need to be delayed, but we'll see. But the good news is they rebounded in April with a claimed +6.54% month and May results should be up in a few days but will doubtlessly be similarly stellar.

[notorial dissent]

Fantasy is the word that immediately leaps to mind, funny would be next, followed by farce, and fraud would be last and the winner. Imagine that, 4 f's.

[JD Kaiser]

Everyone here is certainly more than welcome to get ALL of the correct information themselves by attending one of our live webinars Monday - Friday twice a day by going here: http://www.oceansideforex.com/webinars.html

This week is a unique week and a few of them will be cancelled because my partner Broker Jones will be in a seminar in the mornings.

We are in the middle of our 9th month of trading and are fully transparent by showing an actual live account so you can see our proprietary black box system trade live. It is a multi-engined system consisting of The Waverunner, The Surfboard, and soon to be Barracuda. Each engine has a different trading methodology and together they are nothing short of impressive.

We also have a demo available for you to download and watch on your own computer. I have made a YouTube video explaining how to do so here: http://www.youtube.com/watch?v=EB6DqlxsVZA

We encourage you to get on as many webinars as you would like until it makes sense to you. For some it may take 1, for the skeptical it may take 100, for the cynical, it may take 1000. We have a few investors that have been on a few hundred of our webinars since we started doing them in October of 2009.

The choice is yours, you can either continue to listen to the garbage being spewed here or you can make an intelligent business decision and get yourself educated on what is really going on by seeing it with your own eyes.

Once you see what we are really about, we feel you will be faced with an intelligence test that most people will pass.

JD Kaiser, Founder
O C E A N S I D E


PS: We are talking about managed accounts here... There is no licensing for us to have...
Our main brokers however, WSD Direct in New Zealand and MIG Bank in Switzerland are licensed and regulated as required.

[notorial dissent]

Like I said, "Fantasy, Fraud, and Farce".

[wserra]

Welcome to Quatloos, JD Kaiser. I for one am glad that you can correct the "garbage being spewed here ".

Why don't we start with your claim that "there is no licensing for us to have"? From your site, you appear to be money managers - sort of investment advisors on steroids. With certain exceptions not here relevant, 15 USC § 80b–3(a) requires that any investment advisor who uses an "instrumentality of interstate commerce" to sell or advertise its services register with the SEC. The internet is such an instrumentality. American Library Ass’n v. Pataki , 969 F. Supp. 160 (SDNY 1997). You do not appear to have registered with the SEC.

You are permitted not to register, so long as you make it clear that you do not solicit inside the United States and take certain steps to avoid signing up U.S. clients. Your site, and the act of your posting here, surely seem to be actively soliciting in the U.S. So why are you not required to file those documents which 15 USC § 80b–4 requires?

[notorial dissent]

And let's not forget having to be licensed in ANY state that you have customers from, so please explain how and why you are not.

Like I said, "Fantasy, Fraud, and Farce".

[GlimDropper]

I wouldn't presume to speak for JD (or BJ for that matter) but I have seen them field arguments like this one before. It seems they have any number of reasons to believe they are exempt from all licensing and regulation. If you challenge them on one, they'll spout another. If you persist they'll fall back to saying that they have their own lawyers (and will be hiring even more) and all of them say that OceanSide Forex is completely legal. When asked if any of their attorneys would be willing to put their name and bar number on a statement on their website attesting to that opinion, they seem reluctant to reply. Perhaps if JD wanders through again he can address that issue here.

I wish to be very clear in saying that there is no evidence at this time that Oceanside Forex is a ponzi scheme and I am not saying that there are. However, there have been numerous programs that presented themselves to the public as off-shore, pooled money, managed Forex who in truth were nothing but ponzi schemes. The overwhelming majority of the people who invested their money in those programs lost their money. When you invest with people who are unlicensed and unregulated you don't have any of the normal safeguards designed to protect investors from fraud. If there's no independent auditing of the funds being managed there's no earthly way to prove that any "profits" claimed from investment activity actually exist. So there's no way to know if all they are doing is robbing Peter to pay Paul. There's no way to prove you wont be Peter.

If JD was telling the truth when he said that their magic "black box" trading robot was capable of generating returns so high that "There aren't 50 people on this planet that are able to produce the returns that we are" why are they marketing through blogs and webinars, why is Alertpay the only way to fund an account and why try to "fly under the radar" of securities regulations? The standard reply seems to be that they want to help the little guy but I don't see how that holds water. If they could prove their "black box" is as good as they say it is to people with expertise they would have any amount of capitol funding they required to incorporate, become licensed and comply with all regulations and once they did they'd be rich beyond the dream of Avarice. They could also use that fortune to help as many "little guys" as they desired.

I realize that some of this post is made up of my own characterizations of statements made by BJ and JD on other forums. If they find themselves taking exception to how I framed their arguments, I invite them to clarify those issues here.

[notorial dissent]

They may or may not be a true ponzi, I don’t have enough information, or care enough for that matter, to tell. What they are, is running an UNLICENSED broker dealer operation, and that is fraud. They are in fact, just by replying in this forum, violating so many securities and wire fraud laws that they will get to spend the remainder of their otherwise useless and fraud ridden lives in some Federal holding facility once they become worthy of notice, which I suspect they already have by this point. The big problem with Fed enforcement in this arena, is that they tend to be very slow in responding-way too slow, but when they do, they come down like a ten ton hammer on a peanut. I have little hope that any of their victims will ever see a dime of their money back since these types tend to spend quickly whatever they get, and claim unexpected losses to the gullible until they either run out of patience and or money.

I’ve heard the “magic box”, “trading strategy”, “special knowledge” etc, etc, claims too many times before, and there ain’t no such animal. The closest you can come is computer based trading that is dependent upon really complicated data bases and trend following algorithms, and quite honestly you have about as much luck taking a dartboard and darts and making your decisions that way. The only thing I have ever seen computer trading good for is starting runs on a stock, and usually bad ones.

[wserra]

I’ve heard the “magic box”, “trading strategy”, “special knowledge” etc, etc, claims too many times before, and there ain’t no such animal.

Let alone returns averaging five percent a month:

If JD was telling the truth when he said that their magic "black box" trading robot was capable of generating returns so high that "There aren't 50 people on this planet that are able to produce the returns that we are" why are they marketing through blogs and webinars, why is Alertpay the only way to fund an account and why try to "fly under the radar" of securities regulations?

Bingo.

You guys say that there is no proof that Oceanside is running a ponzi. Why aren't all these observations exactly that?

[notorial dissent]

Let’s see, we have, “magic box”, “trading strategy”, “special knowledge”, “black box trading robot”, "There aren't 50 people on this planet that are able to produce the returns that we are", “multi-engined system” with silly names as an extra added bonus, “trades were reset back to the date of February 25th”, "private offering", the magic words just keep coming.

Then just to be sure we have “incorporated in the Nevis Islands but are telling people that they're setting up their own "bankcorp" in New Zealand”, a sure fire guarantee of soundness and sure fire respectability.

Then, just for giggles, there is nothing in Section 4(2) that even comes close to exempting them from regulation, in fact I would say the opposite.

They’re selling what amounts to securities, or pretending to trade them at any rate, either way, it is unlicensed, unregulated, and so very illegal as to be scary.

There is nothing about this that doesn’t scream fraud, and the only reason I hesitate in calling it a ponzi is that I don’t think anyone by the masterminds are actually getting anything out of it.

In fact, the only truthful statement in the whole mess is "There aren't 50 people on this planet that are able to produce the returns that we are" for the simple fact that NO ONE can make the returns they are claiming.

[wserra]

I think it worth pointing out the type of information the law requires firms like Oceanside to (a) keep and (b) file with the SEC. Doing that makes it clear why these guys would rather pull their own heads off.

First of all, 15 USC §§ 80b–4 and 78c(a)(37) require that all such firms maintain "accounts, correspondence, memorandums, tapes, discs, papers, books, and other documents or transcribed information of any type, whether expressed in ordinary or machine language". Those records are subject to inspection by the SEC at any time. Whatcha think, guys - are Oceanside's records gonna show five percent a month? Given what they say, I don't think I'd want folks with the power to shut me down and recommend prosecution to see them either.

And then there is what they must file with the SEC. It's called "Form ADV". I don't want to plow through the CFR, so here's the SEC's plain-language description:

Form ADV sets forth the information that the SEC requires advisers to provide in an application for registration. Once registered, an adviser must update the form at least once a year, and more frequently if required by instructions to the form.69 Form ADV consists of two parts:
1. Part 1. Part 1 is primarily for SEC use. It requires information about the adviser’s business, ownership, clients, employees, business practices (especially those involving potential conflicts with clients), and any disciplinary events of the adviser or its employees. The SEC uses information from this part of the form to make its registration determination and to manage its regulatory and examination programs. Part 1 is organized in a check-the-box, fill-in-the blank format.
2. Part II. Part II, which can be given to clients to satisfy the “brochure rule” (discussed below), is primarily for client use. It contains information such as the types of advisory services offered, the adviser’s fee schedule, and the educational and business background of management and key advisory personnel of the adviser; it also contains information about
arrangements that the adviser has that involve conflicts, such as when the adviser uses an affiliate to execute client transactions.

"Business practices"? "Disciplinary events"? "Fee schedule"? Management and key personnel "background"? Can't imagine why Oceanside wouldn't want to disclose this stuff.

"JD Kaiser"? Oceanside?

Anybody home?

[GlimDropper]

So, what's been happening with Justin "Broker" Jones? Well he got one of his blogs taken offline very shortly after publishing the personal information of five of his internet critics. The information he posted was in most cases only partly accurate as if once provided with IP and E-Mail addresses the investigator he hired was either lazy or less than qualified. How could he acquire IP and E-Mail addresses for five posters over at scam.com? Good question. Another good question is why did he pick the five persons he did to "out", after all three of them never said a word about him on that or any other website. But all five are people who Len Clements harbored grudges against and Len used to have access to all posters IP and E-Mail addresses. Len's first public action as an admin at scam was to delete a thread critical of Broker Jones and their relationship goes back to when they were both posters on MLM.com. All told it fair does make a person say Hmmmm.

But don't worry about Broker, he has plenty of other blogs. My favorite is the Oceanside Forex blog with the video's of his new hot blond spokes person. She's so cute when she mentions something about no longer being able to advertise the program because it's a "private offering" and immediately launching into a sales pitch. And I'm genuinely touched by the concern the blog expresses for professional athletes who mismanage their money and after they retire are left bankrupt. Oceanside Forex now offers them help to do that:

What’s happening to the NFL, NBA and MLB players is that they are getting snagged by these so called “financial experts” who often times have no further knowledge of how to produce returns on investment than the players do, and they are given a great sales pitch and their agents tell them “it’s ok many players use these guys”, and then basically millions of dollars end up going down a dark……”black hole” and the Financial Advisors get RICH…..and more often than not……the Player gets screwed.

If the blog entry ended right there I would salute BJ and JD for their honesty, but it didn't so I wont.

[wserra]

All true, GD. Still, as with any HYIP ponzi, just three common-sense questions are enough to send any sensible (i.e., not blinded by greed) potential investor running for the hills.

(1) Anyone here could throw up a series of websites, making exactly the same claims as does Oceanside, and provide exactly the same level of proof - namely none. If they are actually getting the returns they claim, they should be broadcasting the proof of those returns to anyone who would listen, and their success would be the talk of the financial industry. Kaiser Jones would be on the cover of Forbes. Why isn't that happening?

(2) If their "system" could do what they claim, why are they marketing it to little folks who might blunder across their website? Why are they posting on bulletin boards? All of those guys who are too big to fail would make them overnight billionaires for something like that. Of course, the guys who are too big to fail also know bullshit when they see it, and the little guys might not.

(3) If their "system" could do what they claim, why do they need your money? Forget the big guys - Kaiser Jones would be billionaires on their own, and within a few years could buy their own country. Why the trolling in shallow waters?

Obvious answer to (1)-(3): because it's all bullshit.

[littleroundman]

Obvious answer to (1)-(3): because it's all bullshit.

To be accurate, your analysis of Broker Jones/Oceanside/Kaiser is not quite accurate.

Bullshit AKA male bovine excreta AKA cow dung (usually combined with soiled bedding and urine) is often used as manure (agricultural fertilizer). If not recycled into the soil by species such as earthworms and dung beetles, bullshit / male bovine excreta / cow dung can dry out and remain on the pasture, creating an area of grazing land which is unpalatable to livestock.

In many parts of the developing world, caked and dried bullshit / male bovine excreta / cow dung is used as fuel.

Bullshit / male bovine excreta / cow dung may also be collected and used to produce biogas to generate electricity and heat. The gas is rich in methane and is used in rural areas of India/Pakistan and elsewhere to provide a renewable and stable source of electricity.

Bullshit / male bovine excreta / cow dung is also used to line the floor and walls of buildings owing to its insect repellent properties for some types of insects (not flies or dung beetles). In central Africa, Maasai villages have burned bullshit / male bovine excreta / cow dung inside to repel mosquitoes. In cold places, cow dung is used to line the walls of rustic houses as a cheap thermal insulator.

It was also used extensively on Indian Railways to seal smokeboxes on steam locomotives.

Bullshit / male bovine excreta / cow dung is also an optional ingredient in the manufacture of adobe mud brick housing depending on the availability of materials at hand.

Bullshit / male bovine excreta / cow dung is widely referred to as a "cowpie" when fresh. Also known as "cow chips" when dry, it is used in the practice of "cow chip throwing" popularized in Beaver, Oklahoma in 1970 Another game is Cow Chip Bingo.

So,

unlike Broker Jones/Oceanside Wealth/Kaiser, "bullshit" actually serves some useful purpose and is undeserving of any association with Broker Jones/Oceanside Wealth/Kaiser, no matter how innocently such association/s may be made.

[wserra]

Very good. I stand corrected.

[wserra]

In a blog entry from last week, Oceanside brags about finally hiring a lawyer. I mean, I'm impressed with how much they could get wrong about the law thus far entirely on their own. Wanna bet nothing changes?

Anyway, in the same blog entry they repeat their ridiculous assertion that (even though they openly solicit business in the US) they "are actually not even within the SEC’s jurisdiction". For some reason, they plaster a big copy of the SEC seal right alongside their post. Now, we know they don't want to disclose the things the SEC requires them to disclose, but this is ridiculous, even for trolling in shallow waters.


BTW, I have nothing to do with the FBI.

[notorial dissent]

i would expect that the Australian and New Zealand SEC's would be interested to know that Oceanside thinks they are outside of their jurisdiction, even though they are incorporated and doing business there.

Just my opinion, but what the heck.

[wserra]

Well, it's been nearly three months. I guess neither "JD Kaiser" nor "Broker Jones" plans to show up again. From their posts on another forum, I was looking forward to some fireworks:

Like this one:

I've got the names/addresses/background histories/criminal records/affiliations and other important information of most of their prominent players.....including liveandlearn here.

They are all going down.

1 by 1.

Grab your popcorn MLM.com'ers.

The sleeping giant, has been awoke.

And this one:

One thing you will learn about me is that I don't bluff.
...
If you think I'm bluffing?

Re-read that above statement.

I'm one pissed off father and husband....in addition to an angered (likely multi millionaire) business man.

I will own that forum when I'm done.

Like I said.

Bring your popcorn.

And this one:

I will post an update on the Civil Litigations when they begin. You'll find that everything we do at Oceanside is transparent. (to a fault my partner says.)

It will take some time, and the expense will be a nice tax write off for us, and "hell for those who will need to hire counsel". (And you may be correct..... and we may or may not win. But it will send a message. If you want to challenge us. We will meet you.)

We can prove damages, and we will, and it will probably cost 100,000 in legal fees on our end.....and 100,000 in legal fees on the other side as well. At our present rate of growth......it will be an insignificant cost to us and we'll write it off in taxes.

Imagine my disappointment when they write the following in a blog entry from a couple of days ago:

In 2010 we also were assaulted by “Trolls” all over the internet. Claiming we were a scam, or a ponzi, or an illegal operation, and that the owners were “all going to jail.”
...
At first we tried to “combat” these keyboard “warriors” with logic, and patience, but over time we realized that more we replied, the uglier it got. It was clear they were not interested in seeking facts, and that their ulterior motives was simply to attempt to “destroy”.
...
We did learn our lesson however and we left the public forums well over 2 months ago, vowing never to return. It was a pointless and futile battle, and a lesson learned.

These guys have non-standard definitions of "logic" and "patience". And I guess they were, in fact, bluffing.

[littleroundman]

Oceanside Network temporarily closed to US based investors.
by Dwayne Stevens on Wednesday, August 4th, 2010 | No Comments
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Directly from the President of Oceanside, Broker Jones

Oceanside Network = CLOSED Temporarily, to US Based Investors. — Oceanside Forex Managed Accounts are Open. We are working on a $2,500 managed account solution.

COMING SOON: US DOMESTIC FUND offered exclusively for US Investors. Updates will be on our blog!!!

((If you sat on the fence on this one……you’ve missed out for the time being.))

http://www.yoursuccessmission.com/2010/ ... investors/

Anyone interested in taking bets on why this happened ????

or maybe someone could explain why this has happened:

MANAGED ACCOUNT TYPES

We are not accepting any new managed accounts until September 1st.

http://oceansideforex.com/getstarted.html

[Gregg]

Me and Broker go back a bit, but that's another story....

What I always found interesting about his latest scam is a few little details.

Anyone ever notice that neither he nor JD write out Oceanside normally, they always space it out in what looks like way to hide it from search engines. O c e a n s i d e

Also, Oceanside is in fact the name of an earlier Ponzi/HYIP scam that Broker was deeply involved in and while he now backpedals on how involved he was, he doesn't deny it was a flat out scam. So what bothers me about this is if he's such a marketing genius, why did he name a new finance company after a cheap ponzi scheme? Was that a PR masterstroke so brilliant that I missed it when I was in B School?

You won't be seeing them posting here again, their general MO is to try to BS people who don't know any better and then flash the "we got big time lawyers, WHO ARE YOU COMPARED TO THEM?" which works on Talkgold, but I don't think they realized the general clientele around here. I'm sure they're trying to figure out a way to keep this thread from showing up on google.