Capital Blu Management LLC showed their clients solid monthly returns. It looked like a sound investment. The only real warning sign was that the money wasn't in individual accounts, but in a pooled account.

According to the CFTC, while clients thought they were getting those monthly returns, Capital Blu was really losing over $7 million of the $17 million that has been invested. Millions more are unaccounted for, The owners, Donovan Davis, Jr., Blayne Davis, and Damien Bromfield are charged with running a fraudulent commodity pool. In addition to the charges against those individuals and CapitalBlu, a second company, DD International Holdings, LLC, is also charged. Further, there is an issue of money being illegitimately transferred to Nakano Capital Partners, LP, Nakano Capital Advisors, LLC, and/or Nakano Capital Management, LLC.

Some of the money was also misused for personal use. Things like luxury cars and private jet charters were paid for with client funds. Some of it was misused for very personal use. $40,000 was spent for a two night party at a “gentlemen's” club. We are shocked at these abuses of client funds and saddened that none of us ever get invited to that sort of party.

There were about 100 investors involved. That would make the average investment $170,000. 7 million was lost. That cost each investor an average of $70,000. There are millions more unaccounted for.

We wish to give a very special Thank You to the newest member of the FPA's Review Moderation Team for bringing this to our attention earlier today.

The FPA has blacklisted CapitalBlu. We hope that most of the missing money can be recovered so that investors can get at least some of their money back.