Complaint Review: Rothman Group Las Vegas Florida - Internet Internet

I received a phone call from Michael Rothman asking me if I had received his brochure.   I was caught by surprise and couldn't remember if I had since I had been very busy with important issues.   On looking at my mail from the past week I found the information he sent but I still couldn't remember his company.   I see now that when I was looking into buying bullion I must have filled out a request for information (including my phone number) and must have answered something on the internet that linked me to that site.   All well and good, because I was interested in this service.

My talk with Michael put me on the spot because he was very forceful and seemed to assume that I was ready to send a check to him immediately.   At no time did I insinuate anything of this sort.   I recognized an arrogance that seemed very much out of character for any professional person with a service to sell me.

A couple weeks later (1/19/16) I received another call where the conversation included my intentions and actions I had made for investing in the money market.    He ridiculed my decisions and argued with me about many things related to my choices.   He was very arrogant and offensive.

I told him about his lack of consideration for me while we were discussing a potential business matter and he became even more offensive.   I told him that he was 'blowing it very badly' meaning that I was not about to choose to do business with him and he became even more angry.   The call ended after he had been over talking me and I mentioned how unprofessional that was.   He then hung up.

The brochures are very professional looking except for a couple spelling errors that are typical of young kids who lack a proper education.   I also notice that the organization of the information was not in any form that would allow anyone to gain the necessary advice I was looking for.   It seemed to be a compilation of other well written documents from other sources and included a graph that appeared to come from standard business software.   I am not impressed!   I now see that I had also looked into some things on zacks.com and that has been spamming me ever since.

I use my gut feelings often and this situation gives me a creepy feeling, especially upon finding that RgPm is also located in Las Vegas, NV and also Las Vegas, FL.   I don't know if anything about this company is ligitamete or not, but it seems that I may have saved myself from being a donar to a corrupt organization.

Randy Thompson

[email protected]

First of all I would like to thank everyone who responded to my initial posting. Per the overwhelming requests and concerns I will explain the flaws with this type of program. The only person at the end of the day that  makes money is the owners. 

Outrageous Fees make it virtually impossible to make any money

Let me begin by pointing out the fees then I will give you an example of just how difficult it  is to make money with this type of investment. Typical FEES you are paying with  this type of invest are as follows:    

• Commission- Most people pay between 3-7% of the metal value. For example if you invested $10,000 and only used 2.5 to 1 leverage you are paying (based on 5%) $1250 up front that
  goes right into the owners pocket. Now your initial investment is only worth $8750   


•  Next most companies charge a spread. A spread is the difference between the "real" or "spot" price of the metal and the "actual" price you pay. In the case of Palladium the spread is typically 5% above spot. 
  For example if the spot price is $600 per ounce you are actually paying $630 per ounce. Some of that spread goes directly into the owners pocket. So on a $10,000 investment using 2.5 to 1 leverage you would be able to purchase approximately 
  40 ounces of Palladium. If you multiply 40 times $30 thats another $1200 that you have to over come with a movement in the price of palladium. Now your initial investment is worth only $7550!!!   


• The longer you are in the market without a major move to the upside you continue to lose value to your intiial investment because of the monthly interest being charged. Most companies charge around 9-9.5% annually on the leveraged amount. So on your $10,000 investment with the 2.5 to 1 leverage you would be paying that interest on approximately $15,000 ($1350 annually) or $112.50 per month.   

•  Lastly the "hidden" storage fees that they charge every month.....while they are minimal they still add up and help to reduce your investment on a daily basis. The worst part about this is the question of do they REALLY have the metal. My suggestion is to call the depository the claim is storing your metal and see what they have to say about your account. These are just a few reasons why it is extremely difficult to ever make money unless you see a huge move to the upside in a very short period of time, which has obviously not happened. Even with a $100 move in Palladium chances are you will not make any money....or at least the type of money that make the risk worth it. 
  
  

Remember this is a unregulated industry and many companies have gone out of business leaving the clients with nothing. Don't take my word for it check it out on your own. One Florida company called Global Bullion Exchange was actually featured on 60 minutes for milking investors of almost 28 million dollars!!!!!

They still don't know what happened to all the money. If you have any questions or concerns or simply want an exit strategy give me a call and I will be more then happy to assist you. Remember these are not brokers your dealing with....they are very talented salespeople who will do anything to get your money. Ask the owners of these firms if they invest in this program and ask them
to give you a list of all the clients that have made money with them.......the list will be short....very short. Look forward to hearing from you.