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| Version 1 | Version 2 |
|---|---|
| Investor says sorry for huge losses | Investor says sorry for huge losses |
| (about 1 hour later) | |
| The boss of a Florida-based financial firm has made a tearful video apology to clients after bad bets on oil and natural gas prices wiped out their investments. | The boss of a Florida-based financial firm has made a tearful video apology to clients after bad bets on oil and natural gas prices wiped out their investments. |
| James Cordier blamed a recent bout of market volatility for the losses, which are set to destroy his firm. | James Cordier blamed a recent bout of market volatility for the losses, which are set to destroy his firm. |
| "I truly invested your funds like you were family," he said in the 10-minute video posted on YouTube. | |
| "I'm sorry that this rogue wave capsized our boat." | "I'm sorry that this rogue wave capsized our boat." |
| Natural gas prices enjoyed their biggest one-day percentage gain in eight years on Wednesday last week, only to suffered their largest one-day loss in 15 years the very next day. | Natural gas prices enjoyed their biggest one-day percentage gain in eight years on Wednesday last week, only to suffered their largest one-day loss in 15 years the very next day. |
| Meanwhile, oil prices have also fallen sharply. | Meanwhile, oil prices have also fallen sharply. |
| Mr Cordier is president of OptionSellers.com, based in Tampa, and co-wrote a book called The Complete Guide to Option Selling. | Mr Cordier is president of OptionSellers.com, based in Tampa, and co-wrote a book called The Complete Guide to Option Selling. |
| The company managed money for wealthy investors and specialised in options, which give investors the right to buy or sell at a pre-determined price. | The company managed money for wealthy investors and specialised in options, which give investors the right to buy or sell at a pre-determined price. |
| OptionSellers said the losses were its "clients' private business. We are in communication with them." | OptionSellers said the losses were its "clients' private business. We are in communication with them." |
| It was not clear how much money the firm managed or the size of the losses. Mr Cordier said in his video that he had 290 clients. | It was not clear how much money the firm managed or the size of the losses. Mr Cordier said in his video that he had 290 clients. |
| However, the losses could total more than $150m, according to Ohio lawyer Jason Albin, who has been in contact with about 80 clients. | However, the losses could total more than $150m, according to Ohio lawyer Jason Albin, who has been in contact with about 80 clients. |
| Mr Albin said he thought the trades, which in some cases involved retirement accounts, should not have been permitted because of the risk involved. | Mr Albin said he thought the trades, which in some cases involved retirement accounts, should not have been permitted because of the risk involved. |
| He is looking at taking legal action against INTL FCStone, the brokerage that cleared the bets on behalf of Mr Cordier's company. | He is looking at taking legal action against INTL FCStone, the brokerage that cleared the bets on behalf of Mr Cordier's company. |
| INTL FCStone declined to comment on the claims. | INTL FCStone declined to comment on the claims. |
| The firm said accounts managed by Optionsellers.com were liquidated after "unprecedented volatility" in the oil and gas markets last week. | The firm said accounts managed by Optionsellers.com were liquidated after "unprecedented volatility" in the oil and gas markets last week. |
| "Although well collateralized, accounts managed by a commodities trading advisor, Optionsellers.com, had to be liquidated as a result of these moves," the company said. | "Although well collateralized, accounts managed by a commodities trading advisor, Optionsellers.com, had to be liquidated as a result of these moves," the company said. |
| "Liquidation of these accounts was in accordance with our customer agreements and our obligations under market regulation and standards." | "Liquidation of these accounts was in accordance with our customer agreements and our obligations under market regulation and standards." |