Complaint Review: MCTS Trading MTK Signal. Patrick Montes - Internet

October 8, 2008 Description of the incident: The following documentation was filed on September 4, 2007 with the Internet Crime Complaint Center (IC3) and a copy of the client's complaint and file was submitted to the National Futures Association (NFA). Note: The complaint on Ripoffreport.com was filed under the name Mark from Slab City, Tennessee; however, these are false, as are many other points made in the complaint. The following documentation accurately details the series events and interactions between the client and Patrick Montes / MCTS Trading. Two emails were sent by the client, one on September 1, 2007 and one on September 3, 2007, misrepresenting facts that were established during a client/broker relationship that started in September 21, 2006. In these two emails the client is lying with regards to the facts and over 500 pages of email correspondence documenting and confirming that all transactions were legitimate and authorized by the client. There are also recorded conversations which is part of industry practice. In these emails the client threatens my livelihood and to try to take away my brokers license which allows me to be the only provider for a family of 5. Here are the documented facts based on emails confirmations and client authorization on every transaction made: Here's a brief synopsis of the client's trading history: 1. An email was received by the client on September 21, 2006 confirming he had traded before and lost $26,000 on his own but wanted to try again. He opened an account with Fox/man on 10/4/06 with $22,000. 2. He was not approved as a managed account due to insufficient funds so he agreed to trade futures under Time and Price Discretion. All trades were confirmed with client on tape and through email confirmations for every trade. 3. The account was transferred to Dorman on 11/18/2006 with a balance of approximately $16,453 (down around 27% from initial investment of $22,000). 4. After transfer to Dorman and initial draw down, client agreed to trade grain options to reduce the risk of trading futures and possibility of margin calls. 5. On 11/29/06 I Initiated an additional compliance confirmation measure to verify with the client that he authorized the trades by sending A NEW TRADE WORKING email before trade was done. This measure was implemented so that it would give client an ADDITIONAL opportunity to change or cancel the trade. The same day, a TRADE CONFIRMATION was sent to confirm the trade was executed as per client's initially authorized trade. 6. On Feb 8, 2007 A CIS SPECIAL grains report was sent to client (approved by Dorman's compliance) confirming the BULL MARKET IN GRAINS! 7. On Feb 11, 2007 client responded with an email, "Patrick, interesting report, should I be buying more?, Thanks, the client." 8. On March 5, 2007 Client requested to close account and a check for the amount of $1000 was sent. 9. On April 25, 2007 client wanted to reopen his account and his commission was reduced from $65 per round turn to $35 in order to help him out. 10. On May 2, 2007 the client sent a letter apologizing for not responding to a margin ($1,100) call that was in violation of NFA rules for more than 3 days on a trade authorized by client. 11. On May 10, email was sent to Mr. Montes by the client regarding margin call, "I acted rashly in typing the letter I sent you. I will continue to use Patrick as my broker." Please note since account was initiated and opened with Fox/Man and Dorman. Every trade has been verified, taped and confirmed on email with time and price discretion.