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US broker PFGBest freezes funds after founder's suicide attempt

  • #81
  • Jul 11, 2012 6:31pm Jul 11, 2012 6:31pm
Quoting PoundTrader
if you only knew how much money i had with these guys, lets just say i would of finish the job Mr. wasendorth couldn't
And I think the judge would have let you off.
Come with me if you want to live....
  • #82
  • Jul 11, 2012 7:18pm Jul 11, 2012 7:18pm
Interesting information on PFG


http://www.foxbusiness.com/industrie...ures-industry/
  • #83
  • Jul 11, 2012 9:32pm Jul 11, 2012 9:32pm
I feel sorry for MF Global clients that went with Pfgbest, this time they might not get any money back
  • #84
  • Jul 11, 2012 9:58pm Jul 11, 2012 9:58pm
seems they have more assets then liabilities??? I'm not a lawyer...does this mean clients will get their money back? Do we have any lawyers in the forum who can explain please? thank you

On Tuesday evening, Peregrine filed to liquidate under Chapter 7 of the U.S. bankruptcy code, with between $500 million and $1 billion of assets, between $100 million and $500 million of liabilities, and between 10,000 and 25,000 creditors. The Chapter 7 filing suggests the company is winding down

Read more: http://www.foxbusiness.com/industrie...#ixzz20NCrY15a

the BK filing is here:

http://www.foxbusiness.com/industrie...-7-bankruptcy/
BarrySDCA Commercial Network Services
  • #85
  • Jul 11, 2012 10:04pm Jul 11, 2012 10:04pm
http://www.nfa.futures.org/NFA-inves...ation/PFG.HTML
Important Message for Customers of Peregrine Financial Group and Peregrine Asset Management - Updated on July 11, 2012


On July 9, 2012, National Futures Association took an emergency enforcement action against Peregrine Financial Group, Inc. (PFG), an NFA Member futures commission merchant (FCM) and Forex Dealer Member (FDM) and Peregrine Asset Management, Inc. (PAM), an NFA Member commodity trading advisor (CTA) and commodity pool operator (CPO) which is closely affiliated with PFG.
NFA took this action because NFA believes that PFG failed to maintain adequate funds in segregated accounts. The shortfall exceeds $200 million. In addition, PFG has filed false reports and has falsified bank records.
It is NFA's understanding that almost all open customer positions at PFG have since been liquidated and that PFG will be generating accurate account statements as soon as possible.
On July 10, 2012, the Commodity Futures Trading Commission (CFTC) filed an injunctive action in Chicago, and as a result, the court has appointed a receiver in the case.
In addition, PFG has filed for liquidation in a U. S. bankruptcy court in Chicago. A bankruptcy trustee will be appointed in this case as well.
When it becomes clear whether the receiver or the trustee will have primary responsibility for liquidating PFG's assets, NFA will provide additional information via email and on the NFA website.
Online access about the CFTC action and the bankruptcy case are available through the PACER system. You can enroll for the PACER service at http://www.pacer.gov/register.html.
If you are a customer of PFG and have additional questions, please contact Toni Rossetti (312-781-1422, [email protected]), Matthew Pendell (312-781-1318, [email protected]) or Lauren Brinati (312-781-1215, [email protected]).
  • #86
  • Jul 11, 2012 10:06pm Jul 11, 2012 10:06pm
Im not sure. But I did listen to the CFTC commissioner interview on Fox business network and to use his words "Pfg clients are screwed." That can't be good for PFG clients coming from him.
  • #87
  • Jul 11, 2012 10:30pm Jul 11, 2012 10:30pm
Quoting DesertSky
Im not sure. But I did listen to the CFTC commissioner interview on Fox business network and to use his words "Pfg clients are screwed." That can't be good for PFG clients coming from him.
yep, i just listen to it, BTW he should be fire, he talk about they did something since the MF Global fall, yeah right tell me one thing they did to prevent this
  • #88
  • Jul 11, 2012 10:47pm Jul 11, 2012 10:47pm
According to a Reuters article it sounds like NFA did alter their procedures to check seg account balances directly with the banks electronically (as opposed to relying on brokers to send them bank statements previously), and PFG did not cooperate. So NFA grew suspicious and the thing blew up pretty soon after.

So, it would be fair to say that the regulator actually uncovered it. Altho rather late, since apparently the shortfall was going on since 2 years.

Will be interesting what actually happend to the cash.
  • #89
  • Jul 12, 2012 12:45am Jul 12, 2012 12:45am
I have an account with PFG, thankfully a very small one.

There will be a free emergency webinar held by an attorney with a background in insolvency in the forex industry at 1300GMT (9am New York summer time?) on Friday. They tell me a recording should be available later, all being well.

http://www.fxstreet.com/webinars/ses...8-142a732d4a62

I do hope you all get something back, especially those with meaningful balances in your accounts.

All the very Best
  • #90
  • Jul 12, 2012 2:27am Jul 12, 2012 2:27am
I've been demo trading with PFG for about 8 months. This recent news has come as a massive shock especially given that it was only last week the rep at PFG telephoned me during which time we discussed, among other things, funding a live account!

What this says to me is either the new business managers were under instruction to bring as much fresh cash on board as quickly as possible or they really did not know anything about the impending bombshell and it was business as normal. Either way the results are profound.

I really do feel for the people who've lost money here, especially when as investors we place our faith in the condition that a segregated account means our accounts are segregated. What a joke.
  • #91
  • Jul 12, 2012 4:07am Jul 12, 2012 4:07am
I am hearing that there was a corporate jet, 24 million dollar building, trip to Northern Italy for the restaurant staff and a bookeeper that was the CFO. Here is the link to a news report that takes a half hour dedicated to the PFG scam.


Inserted Video
  • #92
  • Jul 12, 2012 4:24am Jul 12, 2012 4:24am
I lost my primary trading account with PFG this week and my trading career is currently over. If anyone can offer a glimmer of hope, I'd love to hear it.

FYI - PLEASE make sure your clearing firm is as high up on this list as possible:

http://www.zerohedge.com/news/first-...w-pfg-who-next
  • #93
  • Jul 12, 2012 4:49am Jul 12, 2012 4:49am
PFG BEST didn't fail there customers, the regulators fail to protect customers. this is not a broker problem it a regulator problem that needs to be fix
  • #94
  • Jul 12, 2012 5:08am Jul 12, 2012 5:08am
don't put all good brokers with pfgbest....we all know pfgbest is a small broker.......go with citifx...they are a huge bank with huge liquidity so they are relatively safer......when brokers claim they offest your risk in trading and only earn from spreads, they are bullshitting u......all brokers are your counter-party and they trade against you.....all depends on how deep the broker's pocket is to lose to a profitable trader
  • #95
  • Jul 12, 2012 5:14am Jul 12, 2012 5:14am
Quoting Bohsen
I lost my primary trading account with PFG this week and my trading career is currently over. If anyone can offer a glimmer of hope, I'd love to hear it.

FYI - PLEASE make sure your clearing firm is as high up on this list as possible:

http://www.zerohedge.com/news/first-...w-pfg-who-next
Thanks Bohsen , thats very useful , i used to work with Dukascopy but had to change to PFG couple of month ago , its our fate
  • #96
  • Jul 12, 2012 5:28am Jul 12, 2012 5:28am
Quoting Bohsen
I lost my primary trading account with PFG this week and my trading career is currently over. If anyone can offer a glimmer of hope, I'd love to hear it.

FYI - PLEASE make sure your clearing firm is as high up on this list as possible:

http://www.zerohedge.com/news/first-...w-pfg-who-next
Ive lost money too Bohsen. The WSJ this mornings edition has a good story on this. If money is found Clients "may" have priority over other creditors. i am not holding out hope though. I am trying to move on with my life and this. I agree too the entire system is broken. Wasendorf had been on the advisory board of the NFA and the CFTC basically leaves the NFA to self police itself. Fingerpointing abounds. The bookkeeper or should I say the CFO for PFG also had a seat at the NFA.

The WSJ has two reporters on this so I consider them the lead on this entire story. It will be interesting to see where this missing money went too. Alas we have been scamed.
  • #97
  • Jul 12, 2012 5:41am Jul 12, 2012 5:41am
Quoting slow_trader
don't put all good brokers with pfgbest....we all know pfgbest is a small broker.......go with citifx...they are a huge bank with huge liquidity so they are relatively safer......when brokers claim they offest your risk in trading and only earn from spreads, they are bullshitting u......all brokers are your counter-party and they trade against you.....all depends on how deep the broker's pocket is to lose to a profitable trader
Good point. Just remember though if the FEDS had not backstopped Citi accounts would have been lost there too.
  • #98
  • Jul 12, 2012 5:43am Jul 12, 2012 5:43am
Quoting pber57
Good point. Just remember though if the FEDS had not backstopped Citi accounts would have been lost there too.
citi is what the goverment called- to big to fail.
  • #99
  • Jul 12, 2012 6:05am Jul 12, 2012 6:05am
It appears what brought all this to the forefront was NFA switching to checking bank funds electronically. Although it's rather ironic it took them so long to do this... and in the mean time PFGBest fought the change for some time.

You know I read that even back in 2010 the bank they held the money with made a statement to the fact that the bank account that PFGBest had with them maintained a steady balance of 5 Million.

One thing that is lacking is that the regulators or anyone for that matter has said specifically when the last time PFGBest bank account has had even close to $220 Million in it.

I don't have one cent with PFGBest, but this really makes me mad that we as traders are held to a different standard and all the crap we've had to deal with from FIFO to No Hedging to reduced leverage.

All these rules were supposed to make us safer and bring regulation to an unregulated market for the sake of making us safer. Where is that safety now?

I've always said the NFA / CFTC is nothing more than a couple of "Good Boy" clubs. They can't regulate themselves out of a paper bag. You would have gotten better protection from Barney Fife and the Mayberry Police Dept.

How much more proof do you need that the NFA / CFTC are nothing more than shams themselves. Every single one of them should be hauled off to jail. It inexcusable... there is no excuse valid enough after all of this.
  • #100
  • Jul 12, 2012 7:32am Jul 12, 2012 7:32am
Quoting pip_seeker
It appears what brought all this to the forefront was NFA switching to checking bank funds electronically. Although it's rather ironic it took them so long to do this... and in the mean time PFGBest fought the change for some time.

You know I read that even back in 2010 the bank they held the money with made a statement to the fact that the bank account that PFGBest had with them maintained a steady balance of 5 Million.

One thing that is lacking is that the regulators or anyone for that matter has said specifically when the last time PFGBest...
in china or the arab world they would of executed every last one of the regulators and start new.
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