Topic: Patrick Harnett - Kraken Fund (Read 5061 times)
Man, totally forgotten about this....anything ever come of it?
That sux. I liked Patrick...
Well his credit ratings were comedy gold.
Other than that what was there to like about the guy? He was an apologist for BFL and GigaVPS, and Pirateat40. He promoted stock vehicles guaranteed to fail including the outrageous PPT.DIV that would have been a huge loser for investors even if Pirate didn't default.
I couldn't stand the twat from the first day I browsed this site.
The only thing that makes me sad is that no one pursued him for real world consequences.
That sux. I liked Patrick...
I was surprised that he disappeared. What's the purpose in that?
Assuming he was not using someone else's identity:
http://www.stuff.co.nz/dominion-post/capital-life/5175189/Happy-helping-the-homeless
http://www.rbzgroup.com/people/ph.html
It is almost certain he is not using someone else's identity as he used his srgexpert.com email address for correspondence.http://www.stuff.co.nz/dominion-post/capital-life/5175189/Happy-helping-the-homeless
http://www.rbzgroup.com/people/ph.html
I emailed them
Assuming he was not using someone else's identity:
http://www.stuff.co.nz/dominion-post/capital-life/5175189/Happy-helping-the-homeless
http://www.rbzgroup.com/people/ph.html
It is almost certain he is not using someone else's identity as he used his srgexpert.com email address for correspondence. http://www.stuff.co.nz/dominion-post/capital-life/5175189/Happy-helping-the-homeless
http://www.rbzgroup.com/people/ph.html
Assuming he was not using someone else's identity:
http://www.stuff.co.nz/dominion-post/capital-life/5175189/Happy-helping-the-homeless
http://www.rbzgroup.com/people/ph.html
http://www.stuff.co.nz/dominion-post/capital-life/5175189/Happy-helping-the-homeless
http://www.rbzgroup.com/people/ph.html
http://www.srgexpert.com/patrick.html is this him ?
Scammer-tagged. He is obviously guilty of breaking his contracts here and in the MPOE-PR case, and he apparently hasn't been talking to his victims or arranging repayments. The tag can maybe be removed if he negotiates a reasonable repayment plan and makes payments for a while.
Patrick was the one who bought some PPT operations on GLBSE from original PPT operators just a couple of weeks before pirate defaulted. Those PPTs were "insured", so obviously he had to get some liquidity to pay out the insured bonds. He might have been honest at first but after stepping in too much shit he's saving his own ass 
LOL another one bites the dust...
We got a lot of suckers around here huh?
We got a lot of suckers around here huh?
Definitely Scammer.
This was a bait and switch on a massive scale.
I agree. I can't find any mitigating factors here. There's absolutely no rational explanation for why he would borrow other people's money to buy bad Pirate debt other than to sell his own bad Pirate debt at an above-market rate. That is, I believe that he used Kraken to bail out himself, probably knowing all along he'd renege on the guarantee. The evidence strongly suggests that he put those who trusted him with their money, both through Kraken and through the earlier loans, last.Unfortunately, the scenario that I think is most likely is this one: Patrick put his personal profits from his loan business into Pirate. When Pirate defaulted, he lost a personal fortune and was left holding a pile of bad Pirate debt. To preserve his personal funds, Patrick created Kraken to use other people's money to buy his personal bad Pirate debt at rates well above market. He had to have realized that there was a significant chance that Pirate would never pay a dime and he already knew his own portfolio was shaky. So I can't see his personal guarantee of Kraken as anything but an outright scam for him to take other people's money and make it his money by exploiting this conflict of interest.
Surely that justifies a scammer tag, Joel.
I think so as well.
Quote
Certainly any reasonable expectation of movement in asset values was probably going to be in the 10%-20% range, and that was manageable. A 100% loss wasn’t in the plan, and while actual losses may not be at that level, it is not sensible to continue with the current situation.
If it's only reasonable to cover 10-20% of the loss then he should have said that up front to begin with, instead of promising 100%.
Surely that justifies a scammer tag, Joel.
I think so. In fact, I find it hard to believe that Kraken is playing out any differently than he intended it to from the beginning. I think it's quite likely that he pocketed most of the Kraken fund investments by using them to buy his own Pirate debt at rates well over market. Personally, I see exploiting this conflict of interest as not significantly different from just outright stealing the funds.This was a bait and switch on a massive scale.
I agree. I can't find any mitigating factors here. There's absolutely no rational explanation for why he would borrow other people's money to buy bad Pirate debt other than to sell his own bad Pirate debt at an above-market rate. That is, I believe that he used Kraken to bail out himself, probably knowing all along he'd renege on the guarantee. The evidence strongly suggests that he put those who trusted him with their money, both through Kraken and through the earlier loans, last.Unfortunately, the scenario that I think is most likely is this one: Patrick put his personal profits from his loan business into Pirate. When Pirate defaulted, he lost a personal fortune and was left holding a pile of bad Pirate debt. To preserve his personal funds, Patrick created Kraken to use other people's money to buy his personal bad Pirate debt at rates well above market. He had to have realized that there was a significant chance that Pirate would never pay a dime and he already knew his own portfolio was shaky. So I can't see his personal guarantee of Kraken as anything but an outright scam for him to take other people's money and make it his money by exploiting this conflict of interest.
Surely that justifies a scammer tag, Joel.
This was a bait and switch on a massive scale.
I agree. I can't find any mitigating factors here. There's absolutely no rational explanation for why he would borrow other people's money to buy bad Pirate debt other than to sell his own bad Pirate debt at an above-market rate. That is, I believe that he used Kraken to bail out himself, probably knowing all along he'd renege on the guarantee. The evidence strongly suggests that he put those who trusted him with their money, both through Kraken and through the earlier loans, last.Unfortunately, the scenario that I think is most likely is this one: Patrick put his personal profits from his loan business into Pirate. When Pirate defaulted, he lost a personal fortune and was left holding a pile of bad Pirate debt. To preserve his personal funds, Patrick created Kraken to use other people's money to buy his personal bad Pirate debt at rates well above market. He had to have realized that there was a significant chance that Pirate would never pay a dime and he already knew his own portfolio was shaky. So I can't see his personal guarantee of Kraken as anything but an outright scam for him to take other people's money and make it his money by exploiting this conflict of interest.
Its no different to NcKrazze or Clipse or any of the other douchebags who claimed the money wasnt invested with pirate.
This was a bait and switch on a massive scale.
I agree. I can't find any mitigating factors here. There's absolutely no rational explanation for why he would borrow other people's money to buy bad Pirate debt other than to sell his own bad Pirate debt at an above-market rate. That is, I believe that he used Kraken to bail out himself, probably knowing all along he'd renege on the guarantee. The evidence strongly suggests that he put those who trusted him with their money, both through Kraken and through the earlier loans, last.Unfortunately, the scenario that I think is most likely is this one: Patrick put his personal profits from his loan business into Pirate. When Pirate defaulted, he lost a personal fortune and was left holding a pile of bad Pirate debt. To preserve his personal funds, Patrick created Kraken to use other people's money to buy his personal bad Pirate debt at rates well above market. He had to have realized that there was a significant chance that Pirate would never pay a dime and he already knew his own portfolio was shaky. So I can't see his personal guarantee of Kraken as anything but an outright scam for him to take other people's money and make it his money by exploiting this conflict of interest.
It has only been a few days. I haven't gotten a hold of him just yet, but from the last newsletter he sent:
http://www.4shared.com/zip/9Lj1yWKB/krakenreports.html
He will not pay anything before he extract something out of BS&T which is not what he promised.
http://www.4shared.com/zip/9Lj1yWKB/krakenreports.html
Quote
The realisation of value out of the bulk of the Kraken portfolio proceeds at
glacial pace. That is, of course, extracting something back from the BS&T
assets.
The most likely course of action that I have been advised of is pursuing
Trendon via the SEC. Although providing an affidavit and details to the US
government is not my preferred choice, and there is no guarantee that it will
help, it becomes part of the process. Additionally, I expect it to remain a
slow process largely in someone else’s hands.
Because of the slowness in extracting and returning funds, and being mindful
of several outstanding requests, I have done some work on getting additional
liquidity. Again, this has not been particularly easy with assets locked up in
a non-functioning exchange and a variety of other places.
What I have managed to organise is an option for anyone that wishes to exit
during November at 50% of the face value of your Kraken investment. The
alternative is to wait and see how the SEC process pans out.
glacial pace. That is, of course, extracting something back from the BS&T
assets.
The most likely course of action that I have been advised of is pursuing
Trendon via the SEC. Although providing an affidavit and details to the US
government is not my preferred choice, and there is no guarantee that it will
help, it becomes part of the process. Additionally, I expect it to remain a
slow process largely in someone else’s hands.
Because of the slowness in extracting and returning funds, and being mindful
of several outstanding requests, I have done some work on getting additional
liquidity. Again, this has not been particularly easy with assets locked up in
a non-functioning exchange and a variety of other places.
What I have managed to organise is an option for anyone that wishes to exit
during November at 50% of the face value of your Kraken investment. The
alternative is to wait and see how the SEC process pans out.
He will not pay anything before he extract something out of BS&T which is not what he promised.
If people wanted to invest in toxic pirate debt they could have done so themselves. This was a bait and switch on a massive scale.
Might as well publish the last email that was sent to investors (Nov 8th 2012):
Quote from: PatrickHarnett
I was asked earlier this week if the previous offer I had made (offering to pay 50% of face value) indicated I was going to default given I had undertaken to back Kraken with my own funds. Certainly any reasonable expectation of movement in asset values was probably going to be in the 10%-20% range, and that was manageable. A 100% loss wasn’t in the plan, and while actual losses may not be at that level, it is not sensible to continue with the current situation. So, given the circumstances, I reluctantly have fallen short of the promise that I had originally made, and I am sincerely sorry for that.
So, I have today made a set of payments to Kraken unit holders. Over the past 10 weeks the fund has paid 5.6% and I have repaid over 4000 BTC from my own assets that I have converted into BTC. Where practical, today’s payments have been a minimum of 100BTC and otherwise 50% of the remaining balance. (about 75%) If I do eventually recover more from the “toxic” and illiquid assets I hold, then I have the addresses for returning the balances for the ten people that I still have outstanding obligations to.
So, I have today made a set of payments to Kraken unit holders. Over the past 10 weeks the fund has paid 5.6% and I have repaid over 4000 BTC from my own assets that I have converted into BTC. Where practical, today’s payments have been a minimum of 100BTC and otherwise 50% of the remaining balance. (about 75%) If I do eventually recover more from the “toxic” and illiquid assets I hold, then I have the addresses for returning the balances for the ten people that I still have outstanding obligations to.
It has only been a few days. I haven't gotten a hold of him just yet, but from the last newsletter he sent:
http://www.4shared.com/zip/9Lj1yWKB/krakenreports.html
He will not pay anything before he extract something out of BS&T which is not what he promised.
http://www.4shared.com/zip/9Lj1yWKB/krakenreports.html
Quote
The realisation of value out of the bulk of the Kraken portfolio proceeds at
glacial pace. That is, of course, extracting something back from the BS&T
assets.
The most likely course of action that I have been advised of is pursuing
Trendon via the SEC. Although providing an affidavit and details to the US
government is not my preferred choice, and there is no guarantee that it will
help, it becomes part of the process. Additionally, I expect it to remain a
slow process largely in someone else’s hands.
Because of the slowness in extracting and returning funds, and being mindful
of several outstanding requests, I have done some work on getting additional
liquidity. Again, this has not been particularly easy with assets locked up in
a non-functioning exchange and a variety of other places.
What I have managed to organise is an option for anyone that wishes to exit
during November at 50% of the face value of your Kraken investment. The
alternative is to wait and see how the SEC process pans out.
glacial pace. That is, of course, extracting something back from the BS&T
assets.
The most likely course of action that I have been advised of is pursuing
Trendon via the SEC. Although providing an affidavit and details to the US
government is not my preferred choice, and there is no guarantee that it will
help, it becomes part of the process. Additionally, I expect it to remain a
slow process largely in someone else’s hands.
Because of the slowness in extracting and returning funds, and being mindful
of several outstanding requests, I have done some work on getting additional
liquidity. Again, this has not been particularly easy with assets locked up in
a non-functioning exchange and a variety of other places.
What I have managed to organise is an option for anyone that wishes to exit
during November at 50% of the face value of your Kraken investment. The
alternative is to wait and see how the SEC process pans out.
He will not pay anything before he extract something out of BS&T which is not what he promised.
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