Equiti Group threatens Elysium Network with legal action
Equiti Group has sent out an email to Elysium Network affiliates, informing them they are “considering all legal and regulatory options against Elysium available under law”.
The email is part of Equiti Groups’ attempt to refuse claims from Elysium Network and founder Fred Stege (right), blaming them for investor losses.
Back in May Elysium Network claimed it had “detected errors” in its Equiti Group accounts.
These errors purportedly led to Equity Network collapsing, and Fred Stege washing his hands of any responsibility.
Stege was quick to wash his hands of any responsibility. Elysium Network was promptly rebooted as a crypto advice subscription scheme.
Equiti Group claims this version of events is “misleading” and “defamatory”.
Equiti is an execution-only broker, and serves as the venue of execution for your trades.
Equiti does not provide advisory or management services to its clients.
Elysium used to act, in its capacity as your asset manager, for your account with Equiti, and Elysium alone was authorised to execute trades on your behalf.
As such, the performance of your managed account, including the losses sustained, were caused solely by the trading strategy employed by Elysium.
Majority of the trades Elysium made were loss making due to Elysium’s poor trading.
Elysium kept such loss-making trades open for prolonged periods of time, sustaining heavy losses, and closed winning trades, which were in the minority.
Elysium Network affiliates claim to have lost on average 70% of funds invested through Elysium Network.
Equiti Group claims Stege hid massive losses by only reporting winning trades to Elysium Network affiliates.
The result of Elysium’s loss-making strategy was that the overall equity in your account steadily diminished over time.
Equiti Group states that when it decided to close some Elysium Network accounts in mid May, the
majority of the positions at the time of their closing were loss-making, resulting in your losses being crystalised.
Rather than acknowledge it was unable to generate external revenue via profitable trading, Equiti Group claims Stege blamed it in an “attempt to distract clients”.
For your information, Equiti has legally notified Elysium against continuing to spread misinformation and to defame Equiti.
Equiti is considering all legal and regulatory options against Elysium available under law, at all appropriate forums, should Elysium continue its actions.
We hope the above clarification addresses your concerns. Equiti is available if you have any questions whatsoever.
Equiti are taking this matter very seriously and will deal with your queries on priority. Please do not hesitate to contact us.
Stege has moved on forex trading and now markets himself as a crypto expert.
Elysium Capital affiliates are expected to pay €99 EUR a month for Stege’s thoughts on bitcoin’s day-to-day price movements after the fact.
There is a problem with Equiti’s statement. The problem is, as much as I know, that Elysium has provided notes (I have seen them) showing same strategy deployed on different brokers: on one broker trading strategy was profitable while on Equiti’s side that strategy began to perform poorly after some time. How does Equiti explain that?
If someone is thinking that brokers are on their clients’ side – good luck.
There might be good brokers, but I have seen too much bad things with brokers during the years (both my personal experience and reports on multiples of websites and other sources).
What does not help Elysium, is that I have not seen them provide reliable proof of their claims – that would be investor password to MT4 or double verified Myfxbook link so we could verify results ourselves.
Third party audit of trading history I think would also work.
The fact of the matter is if Fred Stege’s Elysium trading bots worked, he wouldn’t have shut everything down and gone crypto pyramid.
Also there’d be no need to commit securities fraud if you weren’t hemorrhaging money on trades and running a scam.
Do you mean the email the “EA Desk” sent out on May 19? Or did you see other notes? In that mail, Elysium claim they had €274,701 with Equiti on May 14, 2021 and € 3,277 with Noor Capital that same day (at 23h00, market close for the weekend).
This allegedly had become €239,292 and 3,298 at the different brokerages by May 18, 2021 at 19h30. They allegedly used the same settings on both. Meaning that their Equiti portfolio allegedly made a loss of 14.80%, whereas their Noor Capital portfolio turned a profit of 0.64%…
Did Elysium offer any proof of that, or is this just something anyone could conjure up in excel in 2 minutes?
You could ask through equiti.com/support/
My guess would be “complete fabrication”.
The simplest explanation is “because any notes or other flimflam provided by Ponzi / pyramid scammers is bollocks until proven otherwise”.
More specifically, if a regulated, apparently reputable financial firm says A and scammers say B, then A is true until proven otherwise.
You forgot to say what the problem was.
Why would anyone need reliable proof if they have Stege’s word? If we can’t trust a financial and legal mastermind with decades of experience in affiliate marketing, frequent guest lecturer at European top-tier universities, who then reinvented himself in the hedgefund industry, who launched and operated several billion-dollar endeavours*; who can we trust?
Seeing how Elysium/Stege used to pride themselves on their transparancy and boast about their 10-year track record (which then became an 11-year track record, which then disappeared), surely they would be able to provide this?
* Free tip to Elysium/Maurice Van Ophoven (as you’re reading this site regularly), please check the pronunciation of the word “endeavour”.
Yes, that is the same report.
That is what I am saying – anyone can conjure up anything in an excel sheet and screenshot whatever they want. I need proof to verify their claims. So far I don’t have proof.
To others, in general:
If you want to be really thorough with your research and you are seeking only facts/truth, you must be objective till the end.
That is to say one should not make statements that Elysium did not trade, or faked their trading results etc.. Nor should one make statements towards other side. I am not interested in emotionalism, noise etc..
Of course, burden of proof is on the one making statements. In this case – it is Elysium. Elysium, please provide reliable, independently verifiable data of trading results.
No legally required audited financial reports = Ponzi scheme.
You shouldn’t have to guess when it comes to verifying external revenue. Legit companies don’t opt to operate illegally.
One additional thing to note is proof of trading != proof of external revenue being used to pay withdrawals.
I can run an MLM Ponzi scheme, generate $1 in “legitimate trading” but still pay $100 in returns. Where did I get the $99 from?
An audit by a third-party will uncover this fraud, which is why audited financial reports are so important.
And also why fraudulent MLM investment companies never provide them.
Elysium Capital pretty much ended on May 18, when Elysium decided to halt trading and put the blame on Equiti.
From August 13,2020 until May 18, 2021 (Alpha Linea getting a margin call on May 7), they traded. Abysmally.
They kept publishing positive figures for all portfolios until February 2021, (even though various sources independently indicated losses of 40 to 85% by that time) after which they added some disclaimer about a “master account”.
They stopped publishing anything after March 2021, and now elysiumcapital.io is unreachable.
Some people got paid out in Elysium Network, which is a ponzi without the external revenue Capital was supposed to generate (Xoom and SoHo being worthless excuse products) Stege never used xoom; SoHo being promised since late 2019 but not active until April 17, 2021 (facebook.com/daniel.john.92775/posts/10225099615254458).
More than a year after the opening of Elysium Network in early April 2020.
Soho boils down to a meme generator, which you can find pretty much anywhere for free.
Ask your upline. Ask Stege.
Any statements by scammers are bollocks until proven otherwise.
If you commit securities fraud while soliciting investment from the public that makes you a scammer.
If someone is making an extraordinary claim (e.g. “I think this regulated firm is lying because a scammer cooked up some graphs”) the onus is on them to provide evidence, not on anyone who declines to believe them.
None of that is emotion or noise, just how objective reality works.
There is no reason not to register your securities offering with the regulatory authorities, unless you’re running a scam. Elysium did not register with the authorities and submit 3rd-party audited reports. Therefore, Elysium was running a scam. Straight-up logic; no emotionalism.
By the same logic, we can conclude Elysium’s trade reports were all bogus. They were not audited, therefore they are suspect. No emotionalism.
It’s impossible to prove a negative, so it’s kind of silly to imply we’re being illogical and emotional when we point out the burden of proof is on the other side.
In a communication of December 23, 2019; Elysium stated:
Ask Elysium to provide those audited results and to name the LEI of that trading desk.
If they can’t or won’t provide that information, sue Elysium for soliciting investment under false pretenses.
Treated myself through eBay to a copy of Stege’s 2011 international bestseller “Awaken your soul in network marketing”.
Proofreading of that book was finished on June 5, 2011 (facebook.com/fredstege/posts/2007206667264), at which point he had already “founded and managed a successful hedge fund”.
So his family office, which he started after being bought out at Vemma in November 2010, had gone through its mutual fund phase in less than half a year, and was already moulded into a successful hedgefund by June 2011? This guy is something else!
So he achieved his law degree and later his finance MBA in his 4 hours of rest a day?
You’d expect there to be some mention of the law and finance degrees he allegedly had by that point in life; or how his soul got awakened by MLM which then enabled him to coast through two master degree courses at a somewhat later age.
Anyone interested in an in-depth discussion of Stege’s fantasy (read: impossible) CV will find entertaining reading in the comments here:
Herr D and PassingBy were valued contributors.
You’re bound to like comment #6, where I misspell “pretentiovs”.
You’re too kind, good Sir. (Don’t forget Jonas and (in his own inimitable way) bypasser)
If only I’d read his book earlier, browsed it yesterday; I don’t work 20 hours a day, but sleep more than four hours, so haven’t read it in depth. Quite a few gems already though.
Should have spent some of that money to hire better proofreaders.
(No mention so far of his time at the prosecutor’s office, or his university degrees, or his retirements, or any verifiable company name. Weird.)
p. 129 in his international bestseller