Wednesday, April 29, 2009

Another post I did not make

I have been following the Paradigm Global/Ponta Negra and Stanford links for some time.  

The first post - on Ponta Negra - got heavy lawyers letters - so I disappeared.  There were lots of posts I did not make.  

However here is one - quite tame really - that I did not make only a couple of days ago.  It was labelled "A service to the clients of Onyx Capital".


A service to the clients of Onyx Capital

Onyx Capital is updating its website.  Onyx Capital is – as their website used to say – a marketer of hedge funds.  All it has on the site is a picture of some text.  I duplicate it here.


It’s a “picture of text”, not “actual text” which means that it is not findable by Google – nor will it be archived in the Google cache.  So when removed it will disappear forever from Onyx's site but will be stored for posterity here.  It is strange to construct a website of entirely pictures rather than searchable text – but that is the way that Onyx seems always to operate.

The current “picture” says that they are updating their personal contact details.  At the moment the website contains no phone numbers, no address and no way of contacting Onyx. 

If you have your money allocated by Onyx you might find that unacceptable.  So I am going to help you out.

Here are the contact details of Onyx before they chose to update their website.  It was also in the form of a picture (not text) so you will not find these contacts archived in the Google cache.  This makes it very hard indeed for clients to find contact details for Onyx.  I copied that picture about a month ago.


Strangely even these marketing details contain no street address – only phone numbers. 

Now – Onyx is a financial services marketing organisation.  And like all marketing organisations it wants clients to be able to find it.  But strangely their contact details have always been in the form of “pictures of text” rather than plain text – and hence have never been archived by Google – making them difficult to find. 

To help Onyx in its marketing I have chosen to repeat three of the contact details.

Jeffry Schneider
512 617 6335

Justin Hare
Director of Investor Relations
713 320 2767

Alla Babikova
Managing Director
New York Office
646 594 7598
I have also sought some information about these people – again for the benefit of Onyx clients.

Jeffry Schneider is a hedge fund marketer and financial professional with some standing.  He has several CVs on the internet (one of which I have repeated below).  He is quoted in this Wall Street Journal story explaining the business relationship between Paradigm Global (a fund of hedge funds) and a certain Alan Stanford.  The relationship is minor.  Stanford used to market Paradigm’s products (including a cobranded product) and Paradigm held some Stanford moneys.  There is no evidence that Paradigm ever allocated any of their client moneys to Stanford.  There is no evidence of wrongdoing – only that Paradigm Global are less careful than they should have been about whose name they attached to their product.  As there is no evidence of wrongdoing the relationship would not be worthy of an article in the Wall Street Journal except that Paradigm Global is owned by Hunter Biden and James Biden who are Vice President Joe Biden’s son and brother respectively.  The link between Stanford and the Bidens is tenuous – at least in the WSJ article.  The link between Onyx and the Bidens is strong.

Schneider is also listed as a contact on other funds marketed from the 17th Floor of 650 Fifth Avenue New York.  (It turns out that the other funds included Ponta Negra.)

650 Fifth Avenue (17th Floor) is the address of Paradigm Global so he has managed to garner other clients on that floor.  If he got clients knocking door to door or by word of mouth on that floor – good luck to him.

Justin Hare has had a dual career.  He has worked for Onyx as the head of investor relations (sales) whilst simultaneously working in “relationship management” (sales) for Stanford (which is widely believed to have been a pure ponzi scheme). 

I am guessing that the Stanford relationship is the reason that Onyx needs to update its contact details.  That however is a pure guess.

Alla Babikova – who works in the New York office of Onyx also sometimes gives her career as the head of marketing for Paradigm Global.  The only CV I can find on the web suggests she joined Onyx in September 2009 – something that appears impossible.  That said – the CV on the web speaks to a long marketing career.

Jeffry Schneider also acts as the marketing agent for other hedge funds – sometimes with Jared Toren who is not mentioned on these contact details.

Jeffry Schneider and Jared Toren were once sued for allegedly stealing a hedge fund marketing database.  They then – alledged in this lawsuit – set up Onyx Capital.  The lawsuit gives Onxy’s address – something that is also missing from the contacts page:

6835 Bee Caves Road
Suite 245
Austin Texas

For the benefit of Onyx clients I have repeated – for searching by Google – the physical address of Onyx’s Austin Texas operations.  The website did not contain the NYC office address and I do not know it.

I hope this helps Onyx’s clients keep in contact with Onyx.  Meanwhile Onyx should – at a minimum – give some contact details on their website and I am looking forward to the website’s next update.


As promised - Jeffry Schneider's CV

Jeffry Schneider, Financial Services Entrepreneur
Jeffry Schneider is a highly successful professional in the securities and investment banking industry. After several years with other capital management firms, JeffrySchneider started his own firm, Onyx Capital, in 2006. Jeffry Schneider has consistently outperformed his competitors in his chosen field of financial services, providing alternative investing opportunities for private clients and small institutions.
Jeffry Schneider created Onyx Capital in response to the high level of interest in alternative investments emanating from high net-worth households and small firm and institutional investors.  Despite the growth in allocations to hedge funds, private equity, real estate, and other alternative investments, private clients and smaller institutions have not had adequate assistance in identifying and investing in top-tier talent. JeffrySchneider secured a place for just that niche. 

As founder and chief executive at Onyx, Jeffry Schneider and his team help bring investors and managers together in the complex alternative investment space. JeffrySchneider’s firm also offers managers a broad array of services, supporting their sales and marketing efforts as well as their compliance and operational needs.

Jeffry Schneider created Onyx after several years of experience working for top firms in highly responsible, professional positions. Before founding Onyx Capital, JeffrySchneider sat at the helm of Paradigm Global Advisors as senior vice president. In this capacity, Jeffry Schneider directed his team in the marketing and structuring department of the firm. Before Jeffry Schneider’s rise to that position, Jeffry Schneiderserved as managing director at Paradigm Global Advisors while also working as a consultant to Puritan Investors in Westport, Conn.

Jeffry Schneider began his professional career as a senior vice president with the corporate and executive services team at CIBC Oppenheimer, a leading integrated financial services corporation in New York, providing wealth management and investment banking services, From there, Jeffry Schneider parlayed his experience to Axiom Capital Management, a full-service broker/dealer with operations in New York and Boca Raton, Fla., as senior vice president. 

Jeffry Schneider holds a Bachelor of Arts degree from the University of Massachusetts at Amherst. Jeffry Schneider currently lives in Austin, Texas, with his wife and three children. 


Anonymous said...

Very good post John

So what do you think will happen next ?

More importantly, what will happen to Biden ?

Nate said...

Very interesting detective work. However, I'm not sure that the formatting of the Onyx website as one big image was a clever tactic to evade Google caching. It's possible, but it's also possible that it was just the laziest/cheapest way to put up a professionally-appearing website for someone who didn't want to pay a real web developer to develop HTML, CSS, etc.

Anonymous said...

I think you are doing a great service with these articles. if the powers that be wont do their job, then the people with the skills and insight simply must.

couple random links
archived copies of most sites on the net at various points in time

whistleblower hosting website

Anonymous said...

John - there is a legitimate reason for using images rather than text for emails; it stops the web spiders used by spam email outfits grabbing your email address.

Research I read few years ago showed that the large majority of spam is directed at email addresses which get on WWW pages. Usenet and other mediums were largely ignored.

Of course also it has the advantage you mentioned of being outside of Google.

Anonymous said...

Yes Biden does seem like a lame duck VP. After Cheney running the world into the ground for 8 years.

Anonymous said...

What is amazing is that the website for Paragidm has apparently been cleansed. The list of personnel is "coming soon" and the brochure is likewise:

In order to read the following PARADIGM Global Advisors, LLC brochures electronically, Adobe Acrobat 4.0 or higher must be properly installed on your computer.

Coming soon..
Coming soon..
Coming soon..

Anonymous said...

I also agree that by using a pdf format for a website is a cheap way to get a professional looking website in place for a new company. So that seems like a dead lead.

Anonymous said...

Ms. Babikova is peripherally known to me and I can say

a) She was in securities sales about 12 years ago.

b) She was/is an exceptionally beautiful young lady.

Anonymous said...

Jeff Schneider is a snake and one of the deals he promoted to me while working with Onyx is now bankrupt and his other land deal is on the verge. Jeff has been and is still linked to investment deals that are flawed and over promised under delivered. Just look at Bella Vista and Potranco land deals with a now closed development company called Blackhawk Development. Matt Hainline and Jeff Schneider were business partners in Onyx AND Matt is the owner of Blackhawk Development. Jeff was encouraged to sell Potranco and Bella Vista to grow his business partners other entity while padding his own pockets with commission and management fess. Although this was disclosed in the PPM Jeff made no additional efforts to make the connection between Matt Hainline and himself known to investors or reps. Jeff Schneider has stopped working under the entity Onyx Capital since this blog was published.

Anonymous said...

There is nothing current about Mr. Schneider in any of his self created self promoting web posts. He boasts about doing triathlons and the iron man.....old new man. We want to know what you have done in the last 10 yeras that has been honest, kind, or for the greater good of man.

Anonymous said...

Mr Schneider is now CEO of Ascendant Capital out of Austin TX. Your posts have been very helpful as I am meeting one of his reps tomorrow.

General disclaimer

The content contained in this blog represents the opinions of Mr. Hempton. You should assume Mr. Hempton and his affiliates have positions in the securities discussed in this blog, and such beneficial ownership can create a conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance and are subject to certain risks, uncertainties and other factors. Certain information in this blog concerning economic trends and performance is based on or derived from information provided by third-party sources. Mr. Hempton does not guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. Such information may change after it is posted and Mr. Hempton is not obligated to, and may not, update it. The commentary in this blog in no way constitutes a solicitation of business, an offer of a security or a solicitation to purchase a security, or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author. In particular this blog is not directed for investment purposes at US Persons.