Frequently Asked Questions

1. What are the differences between the two separate cases against James Mason pending before the United States District Court?

On March 27, 2013, the U.S. Commodity Futures Trading Commission (the “CFTC”) filed a civil complaint against James H. Mason as Defendant and The JHM Forex Only Pool (f/k/a The JHM Forex Only Pool, LP) and Forex Trading At Home as Relief Defendants, initiating case number 3:13-cv-196 (the “Civil Case”). The primary purpose of the Civil Case is to protect investors who may have been injured by the commercial activities of James Mason and/or Mason’s related entities, namely by enjoining any such activities and offering compensation to injured investors.

On April 5, 2013, the United States of America initiated a criminal case against James H. Mason, case number 3:13-cr-118 (the “Criminal Case”), and the N.C. Secretary of State (“NCSOS”) is assisting the United States in the Criminal Case. The primary purpose of the Criminal Case is to punish James Mason for any crimes he may have committed in connection with his forex trading operation.

2. Why was a receiver appointed and what functions does the receiver perform?

Joseph W. Grier, III (the “Receiver”) was appointed in the Civil Case to take exclusive custody and control of all funds, property and other assets owned, possessed or controlled by James Mason, the Relief Defendants, and/or Mason’s related entities for the purpose of preserving those assets in the event James Mason is held liable for the claims alleged by the CFTC in the Civil Case.

At an appropriate time, the Court will direct the Receiver to liquidate the assets. If the court determines that James Mason should be liable for the claims raised by the CFTC, then the court will direct the Receiver to use the proceeds of the assets to make distributions to injured investors. More specifically, the value of the liquidated assets will be first committed to the payment of expenses incurred in the administration of the receivership estate, with the remainder being distributed to injured investors on a pro rata basis, based on the amount of each investor’s principal investment minus any amounts withdrawn from Mason’s forex trading enterprise.

3. How does the Receiver identify assets available for the distribution to investors?

The Receiver is in the process of reviewing the financial, business and personal records of James Mason, the Relief Defendants, and Mason’s related entities to discover potentially recoverable assets. Some of these records were obtained by the Receiver through subpoenas sent to various banks and some were obtained by NCSOS via search warrant and then passed along to the Receiver. The Receiver also indentifies and interviews persons who are believed to have information that may lead to recoverable assets. Moreover, the Receiver conducts searches of the public records in order to identify potentially recoverable assets.

4. Will the Receiver sue investors who have received more money back from James Mason and/or Mason’s related entities than they paid in?

The Receiver is still in the investigation phase of the case but intends to bring any lawsuit that has a solid basis in law and a practical chance of netting a recovery for investors.

5. How often does the Receiver report to the court and what information is included in the reports?

The Receiver anticipates filing status reports with the U.S. District Court approximately once per quarter. Generally, these reports will summarize the Receiver’s efforts to marshal and collect assets, administer the receivership estate and otherwise perform the duties imposed on the Receiver by the court. Specifically, the reports will, among other things, detail the measures taken by the Receiver to identify assets and communicate with investors. In addition, the reports will update the court on the Receiver’s efforts to sell assets, efforts to determine amounts invested by each customer and the customer’s resulting claim and distributions made to customers, should the receivership progress to that far.

6. Where can I find the receivership reports and other pleadings filed in both the civil and criminal cases?

Certain pleadings filed in the Civil Case (including the receivership reports) and the Criminal Case will be posted on this website. Also, all pleadings filed in either the Civil Case or the Criminal Case are available through the federal courts’ electronic public access service, “PACER” (public access to court electronic records), at a cost of $0.10 per page.

7. As an investor with James Mason and/or Mason’s related entities, what information does the Receiver need from me and when does he need it?

Initially, the Receiver does not need any information specific to particular investors; however, if you believe you have information likely to lead to assets of which the Receiver is currently unaware, please contact the Receiver at the following email address: masonreceivership@grierlaw.com.

If the Civil Case progresses to a point where the Receiver will be disbursing money to injured investors, then the Receiver will file with the court, publish on this website and email to all known customers a notice soliciting specific details as to each customer’s investments with James Mason and/or Mason’s related entities.

8. What effort is the Receiver making to ensure he obtains a comprehensive list of all persons potentially injured by James Mason and/or Mason’s related entities?

James Mason maintained on his personal computers—and frequently updated—lists of persons subscribing to or investing in his forex trading enterprise. The Receiver is in possession of copies of the hard drives from Mason’s personal computers and is in the process of compiling and synthesizing the many customer lists into one master list.

9. How will the Receiver apportion the assets recovered and liquidated?

If and when the court authorizes him to do so, the Receiver will make a distribution to injured investors. The Receiver is still in the investigation phase of the case and has yet not determined the specific methodology for apportioning assets that he will recommend to the court in the Civil Case, if so directed by the court. Whatever the methodology, the Receiver will propose the same for the court’s approval and will notice the proposed apportionment methodology to all interested parties in the case, giving any injured investor an opportunity to object to the proposal or to otherwise be heard on the matter.

10. What percentage of my investment should I expect to get back and when will I get it?

The Receiver is still in the investigation phase of the case and is not able to predict the amount of any dividend that could be paid out from the receivership estate at this time. Similarly, the Receiver is also unable to predict how long it will take to fully adjudicate the Civil Case or how long it would take to liquidate all of the assets owned or controlled by James Mason and Mason’s related entities.

11. What if I have additional questions?

If you have additional questions about this receivership and/or the Civil Case, please email the Receiver at masonreceivership@grierlaw.com, and the Receiver will answer questions as time and resources allow, with a focus on fielding inquiries that have general applicability to all investors and/or the general public.

If you have additional questions about the Criminal Case, please email Ms. Mary Lee with NCSOS at: mlee@sosnc.com.

3 Responses to “Frequently Asked Questions”

  1. Steve Rose May 30, 2013 at 12:13 am #

    I am sure once the receiver, who is way over priced for his services,, is done with all this and he of course gets his money along with the court first there won’t be much left for the rest of us

  2. Chris hunter June 12, 2013 at 9:45 pm #

    I agree with Steve Rose

  3. Keith Toad December 6, 2013 at 2:00 pm #

    At the beginning of this blog, it says: “The primary purpose of the Civil Case is to protect investors who may have been injured by the commercial activities of James Mason….”.
    Currently, I do not know of ANY individual investors who have been injured, let alone “may have been injured”, except by the CFTC’s intervention. What ever happened to due process of the law and right to a speedy trial and INNOCENT UNTIL PROVEN GUILTY. I would think that the CFTC would first ask stupid questions like, “who may be injured in the dealings with Mason, then identify them by name and then WHO IS INJURED”. Perhaps we need to contact all investors to initiate a class action lawsuit against the CFTC and other government entities for INJURING our business investment.

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