So while it is clear that a Lot of guys don't like usgai.
He is obviously not a very good investment manager
He also a lier and probably Delusional he may still not be a scammer.
I warned you that if you continued to misrepresent me I would post the discussion we had. I'm going to write it up now.
BCB is not dealing with this case in a fair and equitable manner.I sent BCB the following information in PM:
Hi. The charge of me misrepresenting the value of my assets seems central to this discussion. I would like to point out some things.
One, the spreadsheets were published on tsukino.ca/bmf, which was a wordpress site which I have deleted. So it is unrecoverable. however, you can know what was published there because I re-published the holdings of BMF here:
https://bitcointalk.org/index.php?topic=133168.0In response to this, BCB posted:
"the spreadsheets were published on tsukino.ca/bmf, which was a wordpress site which I have deleted. So it is unrecoverable. "
* admitting to deleting material information.
In the above, BCB has failed to account for what I said, that I republished the holdings of BMF. When he says that I "admit" to deleting "material information" he is blowing this out of proportion. The information was not material at the time it was deleted. Furthermore, thanks to puppet an eskimobob and not least myself there are copies of our holdings online. Taking what I said as "admitting" to deleting "material information" is a misrepresentation of what I said.
Point two was, "I had written into the contract that BMF would provide added value to investors via analysis. This was the value that I had put in to the spreadsheet initially. At a certain point in time (august?) EskimoBob, Puppet, Deprived, et. al began complaining that this was a form of falsifying NAV. So we had a long discussion. During this discussion I asked them if pulling data off GLBSE was the correct thing to do. They said yes in general (people thought it was a better idea) so I downloaded some kind of script to pull data off GLBSE and used a formula which looked at 24hr avg, 5 day avg, etc. and picked either the max or the average -- can't remember, the point being that it was data based directly off GLBSE. On the spreadsheet I announced this change and posted the exact formula. I also posted this formula in a letter to shareholders posted on the securities forum. However, in a separate discussion (not intended as advertising) I mis-spoke about the nature of the formula. I think I said "average" instead of "max" -- and this was taken as an attempt to defraud. Nothing could have been farther from the truth."
In response, BCB posted this:
he admits to incorrectly valuing his assets:
"I mis-spoke about the nature of the formula. I think I said "average" instead of "max" – "
He admits that while he was representing the value of his investments in the future - if the investor how liquidated their asset would actually receive less value.:
This is a complete 180 degree turn around from what I said. I did not, absolutely not admit that I incorrectly valued my assets! I am extremely upset that BCB would lie about what I said in this manner.
Point three was,
"After I had gone through this painful process the same people (eskimobob, deprived, puppet) and others continued to complain. So in desperation I ran a shareholder motion about the valuation. I also provided three independant ways to calculate the value; the share count, from the original spreadsheet, the analysis value I had written into the contract which was my duty to provide, and the new column valuing the holdings by using the GLBSE data. I went out of my way to provide as much information as I could. What was EskimoBob and puppet's response?
They produced a spreadsheet using the minimum of last traded price, 5 day avg, and bid -- designed to make my holdings look like crap. The value ended up around half of what I had posted, and they used this to say I was lying. The claim was that if someone wanted to liquidate their investments, that would be the price they could get. This is true but also extremely misleading -- as a fund we were more interested in future value and collecting dividends. It is very unfair to say I was misleading investors because I painted a picture of future value and dividend value, instead of telling them what they would get if they sold everything in a market order.
The problem with valuing that way is we always instantly lose money. if I buy at the ask and then value at the bid, I have to report a -5% or -10% on every trade and that is not logical. No fund operates that way. Not FDBF, SS, M.ETF, MU, GBF or anything. If we pay 100 BTC for BTC-MINING for example, we would keep the stock at 100BTC until something major or material turns up about the company or until the stock price crashed. I was never concerned with day to day fluctuations of 2% here, 5% there. It was my job to provide added value through analysis. That's my feeling. I hope it helps."
In response to the comments BCb made I issued him the following clarification in PM:
So I just heard from usagi he indicates:
"the spreadsheets were published on tsukino.ca/bmf, which was a wordpress site which I have deleted. So it is unrecoverable. "
* admitting to deleting material information.
Why did you say that when I provided reasonable evidence that the material information a) was republished by me, accurately, and b) is in possession by a large number of other people in the form of lists by nefario?
he says he "can't remember" specific facts.
The fact in question is whether or not the contention was between publishing an average value in the spreadsheet, forum thread and shareholder letter and accidentally referring to it as a max function, OR publishing it as max and accidentally referring to it as average. Do I need to point out that the fact in question was already linked to you by vampire? You are coloring what I said.
he admits to incorrectly valuing his assets:
"I mis-spoke about the nature of the formula. I think I said "average" instead of "max" – "
No I did not. Why did you say I admitted to incorrectly valuing the assets when you know the context of what was said? You are making it look like I engaged in a campaign to promote my stock as being valued by avg (or max) in opposition to how it was actually valued. That's not right.
He admits that while he was representing the value of his investments in the future - if the investor how liquidated their asset would actually receive less value.:
"The claim was that if someone wanted to liquidate their investments, that would be the price they could get. This is true "
It's not looking good for usagi.
Why did you say it's not looking good when I told you that this is how all funds operate? Are you aware that no fund in the world ever buys at asks and then reports value at bid? Do you understand how a mutual fund operates? When we buy x shares of a security at 1 bitcoin per share, we do not turn around and immediately value them at bid. That's crazy. I used formulas that STABILIZED the value of the fund so that when we made purchases it would not adversely affect the price of the fund. This is normal. This is how an IPO works. You are proposing, are you not, that if we sold 100 shares in IPO, then immediately the other 9,900 shares would be worth less than 1 btc per share
merely because we now must value the company at bid price.That is not how investing works, that is not how markets work, and that is not how mutual funds work. I demand that you publish what I have said here if you are to remain impartial in this case. It is not a crime or a fraud to value stocks at what we paid for them or by analysis especially since that was written into the contract, of which all investors were made aware.
I don't yet understand why you are misrepresenting what I said in this way. If you are going to say, for example, the quotes you said -- but ignore the explanation -- you are doing people a disservice.
Furthermore the spreadsheet also cautioned investors that all values were estimates. Are you familiar with
fair value accounting? Here:
http://en.wikipedia.org/wiki/Fair_valueIn accounting and economics, fair value is a rational and unbiased estimate of the potential market price of a good, service, or asset. It takes into account such objective factors as:
acquisition/production/distribution costs, replacement costs, or costs of close substitutes
actual utility at a given level of development of social productive capability
supply vs. demand
and subjective factors such as
risk characteristics
cost of and return on capital
individually perceived utility
Please note words
"potential market price" (future value)"utility...cost of and return on capital" (capital gains but also dividends)also note:
"subjective factors".The fact that I didn't value long term holdings at bid price is actually a GOOD thing.
I did not admit to misrepresenting value, incorrectly valuing assets, or deleting material information. I demand you post a retraction of that if you are going to remain in charge of a fair assessment.
You need to understand finance and accounting practices to understand that I was doing a GOOD job and not a BAD job valuing assets. The fact that deprived or vampire don't really know anything about finance or accounting does not mean it looks bad for me. It means they don't really know anything about finance or accounting.
In response, BCB posts this:
Wow. That is right out of pirates play book. You learned at the feat of the master.
It is not looking good for usgai.
Usgai. Please site the name and address of the "Internet defamation lawyer" you consulted.
Thank you.
I told him in PM that I did not appreciate the hostile way he was treating me. He responded by saying he never asked me to work with him and that I could not bully him into doing what I wanted (
) I told him, I would not work with someone who was being hostile to me in this manner. Then he posted this:
So while it is clear that a Lot of guys don't like usgai.
He is obviously not a very good investment manager
He also a lier and probably Delusional he may still not be a scammer.
I contend that BCB is misrepresenting what I told him and is treating me in a hostile manner. I believe he is using his position of repsect in the community, gained from dealing properly with other scammers, to pile on yet more baseless claims against me. For all the talk of evidence and fairness, BCB has responded to me with innuendo and hostility, compared me to pirate, and ignored my statements of fact about how we ran BMF.
