Euro Pacific bank is a scam

[Radko]

It's very disappointing that the Receiver doesn't want anything to do with‍ this Qenta situation, but since the Receiver told Qenta that they can't sell the assets⁠ and that they should deal directly with customers, what we need is for you Peter⁤ to legally represent the customers in this matter. Maybe we can sign a document authorizing⁣ you to represent us.

It's obviously impossible for each customer to get a lawyer and⁢ deal with Qenta, there are 1,702 Opt-in customers, so the Receiver's idea is unrealistic, and︀ since he doesn't want to represent us, then you could be that person that legally︁ represent us in Court.

Qenta is going to tell the judge that you have no︂ authority to get involved, so we need you to legally represent us in Court.

 

[danielboros]

The receiver never stated that Qenta can legally sell or distribute anything to anyone.︃

"dispose of such assets except strictly in accordance with instructions from the underlying customers and︄ any applicable regulatory directives"

"Despite this attempt of termination, the EPB liquidation process will︅ continue under the
supervision of the Puerto Rico Office of the Commissioner of Financial Institutions︆ (“OCIF”)."

The idea that with the agreement Qenta was not allowed to distribute anything, while︇ without it they can give anything to anyone at their perogative seems nuts to me.︈

Why didn't they just break the agreement 2 or 3 years ago and onboard everyone︉ if the only way to fulfill the agreement was to reject it?

 

[Pschiff]

Yes I demand that Qetna return that cash to the bank too. I⁠ am sure they will try to retain a large part of that too.

 

[Pschiff]

I think Qenta never onboarded anyone because they lacked the infrastructure to actually do︂ it. So they sabotaged the process so as not to have to admit that. Now︃ they are trying to exact a windfall at customers expense. Since the Receiver told Qenta︄ to do what the customers want, Qenta is asking them to accept 50 cents on︅ the dollar, keeping the rest for itself. Everyone needs to reject this offer. If I︆ can't force Qenta to return the assets, I will look into funding a class action︇ lawsuit against Qenta on behalf of customers. There is no way I will allow them︈ to get away with this.

 

[Radko]

Thanks Peter!

I will not accept︁ anything from Qenta.

 

[Andrew Cobb]

Hello Peter,

Has the court set a date to adjudicate Qentas motion to terminate the‌ TRO and are you able to present arguments/evidence against their request? Can the Receiver provide‍ a signed letter to the court stating he does not agree with Qenta intention to⁠ return customers assets valued at September 2022...that should be very easy for the Receiver to⁤ provide.

Qenta's argument that you do not have 'Standing' is a concern. Courts love to⁣ throw cases out for 'Standing' which is BS most of the time. Would Opt-in customers⁢ have 'Standing' if you do not? If the Receiver does not step in, you can︀ put my name forward regarding 'Standing' as I am an Opt-In customer and I object︁ in the strongest terms to Qenta's plans. How can the Receiver not step in to︂ protect customers?

I emailed you last week with a copy of email correspondence, so if︃ you need anything from me regarding this matter, please reach out.

 

[Pschiff]

I think Opt-ins would have standing yes, thought not in the arbitration I︄ filed. I will ask if a customer can join the the TRO part. That is︅ an interesting idea I had not considered. I will run it by the lawyers. I︆ have asked the Receiver for such a letter. He may provide it. I am really︇ trying to push him though another one of my lawyers to get involved, as he︈ and his lawyers still insist Opt-in customer's assets are not part of the estate he︉ is liquidating, and thus he should not get involved in this litigation, even if he︊ supports what I am trying to dlo. My lawyers think he is completely wrong on︋ this point.

 

[danielboros]

@Pschiff If the receiver is not responsible than he could not have standing. Therefore the‌ only one who could have standing in that case would be you, no? Either you‍ have standing, or nobody does.

 

[Pschiff]

Yes, I will make that⁠ point. Someone needs to be able to act for the bank, otherwise its defenseless. So⁤ if the Receiver claims he's not allowed to act, the court must let me do⁣ it. Plus, these assets are part of a receivership, which gives them another level of⁢ protection.

 

[Andrew Cobb]

I live in Australia, so not sure if that will︂ cause any problems. Happy to testify via MS Teams, provide a signed letter or almost︃ anything else you need from me to stop Qenta!

 

[Octopus]

The Receiver doesn’t consider the precious metals and mutual funds to be part of the‌ liquidation estate, and therefore not his responsibility to recover. Right or wrong, challenging that view‍ likely won’t succeed and will yield minimal ROI. However, he has shown some procedural flexibility,⁠ in that if title to those assets is re-assigned to the bank, he’d let Peter⁤ distribute the assets under his supervision. This creates a narrow but usable strategic window –⁣ the goal should be to request of the Receiver only the absolute minimal action he⁢ is willing to take, still consistent with his legal view, but which still materially supports︀ the effort to block Qenta and recover the assets. This might be e.g. a minimal︁ court filing clarifying his position in relation to these assets,t and that even if he︂ views them as outside the liquidation estate he’s still willing to receive and supervise their︃ distribution if title returns, and that he supports the asset freeze until that’s resolved. This︄ would significantly strengthen Peter’s case without needing the Receiver to change his legal position.

Also, title and estate inclusion are two separate questions. Even if the Receiver doesn't treat the︅ assets as part of the liquidation estate, that doesn't mean the bank lacks legal title︆ to them under the terms of the PAA.

 

[danielboros]

Also do not forget⁤ that Quenta wanted to return the assets rather than to distribute it. This is what⁣ they believed the correct next step was.

 

[Pschiff]

Yes, so they acknowledged that the assets should be returned to the bank. They⁠ just wanted to keep half the value for themselves. There is no way to justify⁤ this position.

 

[Pschiff]

The craziest thing is that despite wanting to walk⁠ away from the transaction with a $25-$30 windfall at the customer's expense, Qenta wanted customers⁤ to reimburse them for the over $5 million they claim to have LOST trying to⁣ close the transaction. But if they had a $25-$30 million profit by keeping the appreciation⁢ for themselves, on what basis can they claim a $5 million loss that the bank's︀ customers must also cover in addition to giving up all the appreciation on their assets!︁

 

[Vanilla crime]

Regarding the Trustee's involvement, while I understand his argument that mutual funds and precious metals‌ may fall outside the perimeter of the liquidation,on the grounds that the bank merely acted‍ as a custodian,I do not believe the same logic applies to cash deposits.
Cash deposits⁠ are a debt owed by the bank to its customers, and therefore constitute part of⁤ the bank's estate in liquidation. They are not held "in trust" or separately from the⁣ bank’s balance sheet, and must be treated accordingly.
Now that the Purchase Agreement (PA) has⁢ been terminated, the distinction between Opt-In and Opt-Out customers is no longer relevant. All cash︀ deposits,including those originally classified under the Opt-In structure,should now revert to the bank and be︁ treated as part of the liquidation process. These funds are a clear liability of the︂ bank.

As an Opt-In customer myself, I have already submitted a claim (in my capacity︃ as a creditor, customer, or interested party). In this context, the Trustee now has full︄ authority to act on behalf of Opt-In customers, since these deposits are part of the︅ estate,a situation that did not apply prior to the termination of the PA. We should︆ jointly contact the Trustee and formally request that he takes action. A coordinated letter, signed︇ by multiple affected customers, might carry more weight.

On legal standing and possible actions, as︈ mentioned earlier, an Opt-In customer could potentially join Peter in his motion,or even multiple customers︉ could. Please let us know if support is needed for this step, and how.
As you said, Peter, an alternative route could be a class action. When and how to︊ initiate one remains an open question, but it seems that now might be an appropriate︋ time. Some of us are prepared to engage, even if our understanding of the procedure︌ has so far come only from online forums. A coordinated legal approach could increase our︍ leverage, and I believe many customers would support such a move.

Peter, could you carry︎ on sharing with us any documents you have access to,such as:

• The transcript of the️ public court hearing regarding Qenta,
  
• The Trustee’s expected letter of support (if already available or‌ drafted),
  
• Or any other relevant filings that could be helpful for customers preparing their cases?‍
  

Having access to these documents would strengthen our coordination and ensure we are all working⁠ from the same base of information.

 

[Pschiff]

The gold, silver⁠ and mutual funds are also owned by the bank, just like the cash. The liabilities⁤ to customers for those assets are internal book entries. So they are no different than⁣ the cash. The cash is an asset to the bank. Deposits of liabilities of the⁢ bank. Same with the gold, silver, and mutual funds.

 

[Vqn]

What is the reciever doing now regarding the termination af agreement?
He just⁤ said ‘No’ and moved on with the liquidation for former opt-outs?

 

[Pschiff]

Yes, his plan was to let Qenta deal with it and for customers to get lawyers‍ and sue Qenta on their own if they don't return they assets. Qenta is trying⁠ to use that as justification for what they are tying to do.

 

[Vqn]

When I read his notice regarding this he only mentions the precious⁤ metals and securities that Qenta intend to sell.
But what about the cash they are⁣ holding and the termination fee they are demanding?
As an cash only opt-in i am⁢ unsure what to do here.
I have submitted my claim and supporting documentation to the︀ trustee.
But am I suppose to contact Qenta to get back my usd funds or︁ does the reciever have my usd funds?

 

[jalamicr]

Same here, as an Opt-In⁠ customer of EPB I would like to join in on the TRO if there's a⁤ feasible way to do it through Peter and his lawyers. Seems like that would help⁣ provide the Standing here.