Class Action Lawsuit against Precious Metal manipulation If you have suffered losses or damages due to gold and silver manipulation please read carefully below. I personally have invested in two silver mining companies in Australia that have gone into administration due to low silver prices. Dear Mr ......... Thank you for your enquiry about pursuing a claim in relation to the manipulation of gold/silver markets. I would like to explain how this firm proposes to go about investigating and then commencing a potential class action or actions seeking redress for those participants in the gold and silver markets who may have suffered loss and damage as a result of the improper manipulation of the market prices for gold and silver by the financial institutions that participated in the London Gold Fixing and the London Silver Fixing over the course of a lengthy period until 2014. Summary of proposed class action(s) Based on documents in the public domain to which I refer below, I consider that there are good grounds to believe that members of six well-known financial services groups combined together to manipulate the outcome of the London Gold Fixing between about 2004 and 2014 and that members of four of those groups combined to manipulate the outcome of the London Silver Fixing between about 1999 and 2014. The effect of this was to create false market prices, in particular by artificially depressing prices after the 3pm (London time) Gold Price Fixing and to increase bid-offer spreads in physical gold, physical silver and their respective derivative instruments. The relevant institutions did this to increase their profits from their own activities in these markets at the expense of other market participants who have therefore suffered loss and damage, probably running into hundreds of millions of pounds in aggregate. If it can be established that these financial institutions participated in price fixing then we consider that there can be little doubt that they have breached section 2 of the Competition Act 1998 and are liable to pay damages to any other market participant that suffered loss and damage as a result. Market participants who have suffered loss and damage are entitled to claim damages in proceedings in the Competition Appeal Tribunal ("CAT") in a class action pursued either on an 'opt-out' or an 'opt-in' basis. 1. Introduction to Leon Kaye Solicitors The firm was established in 1974 and since the mid-1990s we have developed particular experience and expertise in the specialised field of class action litigation, specifically in relation to investments/collective investments. Our major class action cases include claims in respect of Business Expansion Schemes, Resort Hotels, Equitable Life, RBS's 2008 Rights Issue and Split Capital Investment Trusts. On behalf of clients we have established two important court rulings which are fundamental to the ability of class action claimants to participate in such claims on a reasonable risk/reward basis. Leon Kaye has been working closely with 'Own Bullion' who are community for the mining and metals industry. 2. Gold and silver price manipulation the facts as we currently understand them It has long time been rumoured in the market that prices have been consistently manipulated by the major financial institutions via the London Gold Fixing and the London Silver Fixing. Until recently, this view was based on anecdotal evidence and the frequency of significant market price changes which could not be objectively explained in any other way. However, in recent months evidence has emerged which suggests that the market prices of both gold and silver have been consistently manipulated in the London Gold Fixing and the London Silver Fixing. We summarise part of that evidence below. Deutsche Bank settled class actions in New York On 13 and 14 April 2016 it was publicly announced that Deutsche Bank had agreed to settle two claims against it in the New York court that it had conspired with other financial institutions to fix gold and silver prices at the expense of investors. The agreed terms in relation to the Gold and Silver market have now been made public and settlements of $60 million and $38 million, respectively, have been agreed with between Deutsche Bank and the Claimant investors. Deutsche Bank have also agreed to provide documents and information to assist the investors to pursue claims against the other conspirators. The other alleged conspirators were named as Bank of Nova Scotia, Barclays, HSBC, Socit Gnral and UBS in the case of the gold market claim and Scotia Bank (part of the Bank of Nova Scotia group), HSBC and UBS in the silver market claim. In particular Barclays Bank were fined 26 million in May 2014 over gold price fixing. The formal Complaint of the claimants in the gold market case in the New York court relies on extensive statistical work which appears to show that the relevant institutions consistently artificially suppressed the price of gold at the 3pm (London time) daily Gold Price Fixing. The claimants in that case are market participants who sold gold and gold derivatives following the afternoon fix and therefore claim to have received artificially low prices. We have not been able to locate the equivalent Complaint in the silver market case. Further to these revelations above, documentation recently filed by plaintiffs in New York in December 2016 revealed possible collusion by traders to 'push', 'smack' and 'whack' gold prices suggesting activity was not just limited to the London fix. We can also advise that JP Morgan are back in Court in the USA in connection to silver manipulation. Class actions in Ontario, Canada On 18 December 2015, a class action was commenced in the Superior Court of Ontario, Canada on behalf of all person or entities in Canada who between 1 January 2004 and 16 March 2014 transacted in the gold market (i.e. for physical gold or derivatives) claiming compensatory damages limited to $1 billion arising from the manipulation of the London Gold Fixing during that period by the six institutions we have identified above. A detailed Statement of Claim was filed on 15 January 2016. On 15 April 2015 a further class action was commenced in the Superior Court of Ontario, Canada on behalf of all person or entities in Canada who between 1 January 1999 and 14 August 2014 transacted in the silver market (i.e. for physical silver or derivatives) claiming compensatory damages limited to $1 billion arising from the manipulation of the London Silver Fixing during that period by the four institutions we have identified above. It is the above developments, which lead us to conclude that there are good grounds to believe certain that the financial institutions combined together to manipulate gold and silver prices via the London Fixings. 3. Next steps further investigation, litigation funding and seed funding In our view, the matters we have summarised in section 2 above provide a sufficient basis for sending formal Claim Letters to the relevant financial institutions on behalf of any market participants who instruct us to do so. In order to commence proceedings thereafter we would need to establish: 1. A reasonably arguable independent basis for alleging that the financial institutions have combined together to manipulate gold and silver prices. 2. If possible, whether the grounds of complaint in relation to the gold market are confined to the artificial suppression of prices after the 3pm (London time) Gold Price Fixing and whether the grounds of complaint in relation to the silver market are similarly confined. 3. A basis for identifying and calculating the damage suffered by individual market participants. For this purpose we would need to identify one or more market experts to assist in the formulation of the claim. We have obtained initial advice from counsel at our own expense which supports the approach we have outlined above, but further, more extensive advice will be required as the matter progresses. This firm will also require payment for its work on the claim. As the total costs will undoubtedly be very substantial, we do not consider that a class action would be viable without external funding from a funder that was prepared to fund the preparation and pursuit of the claim in return for a share of any eventual damages. We would also need to obtain after the event litigation insurance to indemnify the claimants against any liability for the defendants' costs. In our experience litigation funders will require to see a fully worked up business case before funding any claim, including an assessment of the potential damages on which their fee would be based. We are not aware that any other lawyers are contemplating such proceedings in this country. Based on what you have told us, we would ask you to make a payment based on the scale below to enable us to fund the steps we have outlined above:- Value of Investment Contribution Below 250,000.00 250.00 250,000.00 - 500,000.00 500.00 500,000.00 - 750,000.00 1,000.00 750,000.00 - 1,000,000.00 1,250.00 1,000,000.00 - 5,000.000.00 2,500.00 5,000,000.00 - 10,000.000.00 7,500.00 10,000,000.00 + 10,000.00 On an individual basis this is a nominal sum but with sufficient contributors, it should produce a sizeable fund to enable us to carry out initial investigations and approach funders with a worked up business case. Given the small size of the individual contributions and the need to expend them on an exercise which is not guaranteed of success, the contributions would have to be made on the basis that they are non-returnable. However, in the event that we are unable to commence proceedings for any reason, we will refund any unused balance of contributions to contributing claimants on a pro rata basis. I enclose a basic information sheet to be completed by interested potential claimants which also includes details of how to make payment of your contribution. This should be completed and either posted to us at: Leon Kaye Solicitors 591-593 King's Road London SW6 2EH Or emailed to: [email protected] Please send your initial payment to: Leon Kaye Solicitors Client Account Details Name: Leon Kaye Solicitors Sort Code: 50-21-01 Account Number: 22206019 Branch: NatWest Clapham Junction Branch 66-68 St John's Road Clapham Junction London SW11 1PB BIC: NWBK GB 2L IBAN: GB51 NWBK 5021 0122 2060 19 REF: INITIAL(S) AND SURNAME AS REFERENCE E.G. "JB SMITH" Or telephone our accounts department to make a credit card payment. Please note that payments by card will attract an additional charge payable to the card provider which we will ask you to pay by bank transfer. I also attach my firm's terms of business for your approval. Your reply to this email and receipt of payment will be deemed as your acceptance to these terms. I trust the above gives sufficient information for your purposes but please let me know if I can provide anything further. Regards Sunil Patel Solicitor Leon Kaye Solicitors 591-593, Kings Road, Fulham, London SW6 2EH Tel. 020 7228 2020 or 0207 228 6484 Also at 45 Pont Street, Knightsbridge. London SW3 OBD Tel. 020 7228 2020 or 020 7095 0930 Fax. 020 7228 6484 or 020 7095 0948 DX 161360 Chelsea 4 www.leonkaye.co.uk
So they want people to put money up to make a business case to attract other people to put money up for a "share of any eventual damages". Exactly what share will these earlier investors get?
The Great Silver Ponsi Scheme. On a more serious note, if the price goes down after the end of manuipluation can we sue you?
Oh c'mon Bron.. live a little! nothings as exciting as sending money to a complete stranger. I'll pm my bank account details in a minute.
