US broker PFGBest freezes funds after founder's suicide attempt | Page 10 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

MBT or Pfgbest? 40 replies

how about the broker of Pfgbest? 1 reply

PFGBest - DEMO Server Down for You Too? 7 replies

IkonFX Viking Trader or Pfgbest Viking Trader? 2 replies

New problems with broker, requotes and freezes 0 replies

US broker PFGBest freezes funds after founder's suicide attempt

  • #181
  • Jul 18, 2012 2:15pm Jul 18, 2012 2:15pm
citi, for example

Quoting PoundTrader
seems like the bigger the broker the easier they fall, wasn't like that back in the day, look like american greed has taken over
  • #182
  • Jul 18, 2012 2:23pm Jul 18, 2012 2:23pm
People might want to consider not just how good the capital base of a broker is but also WHY it is so good / how they earned that money.

Jason... besides my comments to your wonderful "help" to the community (or was it for yourself? I don't remember...) maybe you can shed some light on the way fxcm has acquired such a fantastic capital base? I am sure other marketmakers can learn a lot from that... a lot... The question is though... in what kind of way...
  • #183
  • Jul 18, 2012 2:40pm Jul 18, 2012 2:40pm
Quoting PeterE
citi, for example
do your research before you speak
  • #184
  • Jul 18, 2012 2:51pm Jul 18, 2012 2:51pm
it's a good point, the trader needs to investigate both the financial health of their broker to be, as well as the trading environment: spreads, fills, technology etc

the financial health of a broker is something that the retail trader rarely considers, they are too focused on spreads, fills, profit etc, which is important, but at the cost of a thorough understanding of the financial health of the broker they are dealing with

on the matter of FXCMs malpractice, another trader pointed out to me that it may actually be the catalyst for it to eventually become better than most.........time will tell

Quoting unknown4x
People might want to consider not just how good the capital base of a broker is but also WHY it is so good / how they earned that money.
  • #185
  • Jul 18, 2012 3:08pm Jul 18, 2012 3:08pm
A good calculation is multiple all regulatory fines by 10 or better 20 (regulatory fines are on average probably not even 1/10th of the gains from the "actions" and max 1/10 of all actions are fined so it would be more like *100) and deduct that number from the capital base. It is funny how one crook goes under and the even much bigger ones creep out of any corner telling people how wonderful they are. Get some dignity scumbags.

Thank god there is fxcm and people like Jason helping all the clueless ones out with their honest unselfish intentions.
  • #186
  • Jul 18, 2012 4:59pm Jul 18, 2012 4:59pm
I read somewhere that the only traders (so far) who will get their money back from PFG are Canadian because of the tight regulations there. If that is true, whatever the rules are in Canada must be enough to ensure that brokers have to adhere to the rules and not screw Canadian traders of out their money or presumably the wrath of Canada will come at them full force. Is that really the case? I've never had a reason to look into Canadian regulators over forex brokers, so I am curious on that point.

If the regulations in Canada are able to protect a trader's money, why can't the US regulators do the same for traders in the US?
  • #187
  • Jul 19, 2012 6:38am Jul 19, 2012 6:38am
Quoting 9thInning
If the regulations in Canada are able to protect a trader's money, why can't the US regulators do the same for traders in the US?
Because the regulators in the US are the same people who are in charge of their own brokerages.

Wolves guarding the hen house.
  • #188
  • Jul 20, 2012 3:03am Jul 20, 2012 3:03am
Quoting PoundTrader
seems like the bigger the broker the easier they fall, wasn't like that back in the day, look like american greed has taken over

so your saying citi will fall? i think u should change to a smaller broker......the smaller the broker the harder they fall
  • #189
  • Jul 20, 2012 3:08am Jul 20, 2012 3:08am
Common situation, as it was with JadeFX broker, but this on with PFG is much more bigger. In JadeFX case money have been refunded to clients after almost 1,5 year. I hope for PFG clients it will be faster. But investigation can last long now
  • #190
  • Jul 28, 2012 5:14pm Jul 28, 2012 5:14pm
Quoting Futures Magazine

Futures regulators chastised in House hearing

By Michael McFarlin
July 25, 2012



http://media.futuresmag.com/futuresm...ze-380x300.jpg


Members of the House Agriculture Committee had the opportunity to grill members of the futures industry regulatory regime today in a hearing that focused on recent scandals. Unlike a recent hearing in the Senate, the House hearing was much more charged emotionally.

Split in two panels, members of the Committee first questioned Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler on topics ranging from Dodd-Frank implementation, to the action taken against Barclays for manipulation of the London Interbank Offered Rate (Libor), to the recent PFGBest fraud and bankruptcy. His written testimony is linked below.
Of particular interest to Congressmen was the subject of the futures industry’s self-regulatory model. Rep. Marcia Fudge (D-Ohio) at one point asked Gensler, “Is the NFA up to the task [of regulating], or would the public be better served by a single regulator?”

Throughout his testimony, Gensler defended the model as being a hallmark of the futures industry, but conceded some changes may be needed. Additionally, when Rep. Marlin Stutzman (R-Ind.) asked about implementing an insurance fund for futures customers, Gensler answered that it is a matter of cost vs. benefit.

In the second panel, the Committee heard testimony from CME Group Executive Chairman Terry Duffy, National Futures Association (NFA) President Dan Roth and Futures Industry Association (FIA) President Walter Lukken. This was the first Congressional appearance for each since the fraud at PFGBest came to light earlier this month, and questions focused on NFA's role in overseeing PFGBest and how the actions of PFGBest are affecting the rest of the industry. Links to their written testimonies are below.

While each expressed sadness and regret for the recent events, that did little to placate the ire of Committee members. Rather than question any members of the panel, Rep. Steve Southerland (R-Fla.) used his allotted time to chastise the panel saying, “You represent an industry that has an integrity crisis.… What have you done to deserve self-regulation?”

Much of the panel’s defense pointed to the elaborate forgeries created by former PFGBest CEO Russell Wasendorf, Sr. through the 20-year fraud. Multiple panel members alluded to police not being able to stop every bank robbery.
When asked if PFGBest could be characterized as a Ponzi scheme, Roth said, “PFGBest was not a Ponzi scheme, it was an outright theft.”

Looking ahead, the hearing briefly touched on proposals made by CME Group and FIA to enhance customer protection.
Testimony of CFTC Chairman Gary Gensler
Testimony of CME Group Executive Chairman Terry Duffy
Testimony of NFA President Dan Roth
Testimony of FIA President Walter Lukken

STORY LINK
Panel members excuse: the police can't stop every bank robbery so we should be excused from doing our job.

Really good to pass the blame on someone else. If you go to the wolf and ask "Mr. Wolf you told me you would protect my sheep what excuse you have?"

"My stomach made me do it." replied the wolf.
  • #191
  • Jul 28, 2012 9:21pm Jul 28, 2012 9:21pm
Quoting pip_seeker
Panel members excuse: the police can't stop every bank robbery so we should be excused from doing our job.

Really good to pass the blame on someone else. If you go to the wolf and ask "Mr. Wolf you told me you would protect my sheep what excuse you have?"

"My stomach made me do it." replied the wolf.
LOL! Ah, the congress!

Hard to define who is worst. The CFTC, PFG, or the congress.

A institution that has people like Barney Frank signing a law in my opinion has no credibility.
  • #192
  • Jul 29, 2012 3:14am Jul 29, 2012 3:14am
I got this email yesterday from Rust Consulting/Omni Bankruptcy

Quoting Omni Bankruptcy

Subject: In re: Peregrine Financial Group, Inc., Case No. 12-27488. Service of Motion and Notice of Motion Re: Trustee's Motion For Order Approving Procedures For Fixing Pricing And Claim Amounts In Connection With The Termination And Liquidation Of Foreign Exchange Customer Agreements.

Body:
Attached hereto, please find a link to the following service documents:

Trustee's Motion For Order Approving Procedures For Fixing Pricing And Claim Amounts In Connection With The Termination And Liquidation Of Foreign Exchange Customer Agreements.

Notice of Motion

If you have any questions regarding this email, please contact Rust Consulting/Omni Bankruptcy (the Debtors' Claims and Noticing Agent) at 877-465-1849.


Peregrine Financial Group, Inc. dba PFG Best
C/O Rust Consulting/Omni Bankruptcy
5955 DeSoto Avenue, Suite #100
Woodland Hills, CA 91367
877-465-1849 Telephone
Email: [email protected]
Did anyone else (former pfgbest customer or prospective customer) get this?
Measure trends automatically with zero lag
  • #193
  • Jul 30, 2012 12:25am Jul 30, 2012 12:25am
Quoting ybfjax
I got this email yesterday from Rust Consulting/Omni Bankruptcy



Did anyone else (former pfgbest customer or prospective customer) get this?
Nope
  • #194
  • Jul 30, 2012 1:02am Jul 30, 2012 1:02am
People got their funds?
  • #195
  • Aug 1, 2012 3:20pm Aug 1, 2012 3:20pm
I live in Germany and got a letter today from Omnimgt. I don't fully understand what it's about. I think I was asked to be present in Chicago on 9th of August

This probably means, my money is lost, right?
  • #196
  • Aug 2, 2012 12:40pm Aug 2, 2012 12:40pm
Quoting adamp
I live in Germany and got a letter today from Omnimgt. I don't fully understand what it's about. I think I was asked to be present in Chicago on 9th of August

This probably means, my money is lost, right?
Some of our money is gone, but not all. The question is HOW MUCH we get back and WHEN. Try this web site www.PFGChapter7.com for the latest info.

I'm almost positive you are not needed in Chicago at this time. Why not use the contact info on the letter you got from Omnimgt and ask for an explanation? - Lou
  • #197
  • Aug 6, 2012 11:54am Aug 6, 2012 11:54am
This week the CFTC will be holding a public roundtable to address the concerns of traders in response to the bankruptcies of PFG and MF Global. FXCM would like to announce its own proposals to help restore confidence for futures and forex traders in the United States.


Proposals to Bring Full Market Transparency and Accountability to the Futures/Forex Industry


The collapse of PFG Best (following so closely after the collapse of MF Global) has sent shockwaves all across the United States. The trading public has serious concerns about the integrity of the futures market and many are questioning whether Futures Commission Merchants (FCM’s) can be trusted to hold client funds. There exists today a crisis of confidence amongst retail futures and forex traders that has never existed before. If not addressed immediately, these markets will be irreparably damaged for years to come.

The following proposals are intended to bring market transparency to the industry by restoring investor confidence in FCM’s.


1) Require All FCM’s to Publicly Publish Their Financials Once a Quarter:

Currently, the CFTC publishes monthly “Net Capital” reports that disclose to the public how much money a Futures Commission Merchant has set aside in capital. However, that report provides very little insight into how well the company is doing financially. By requiring FCM’s to publish their audited financials the trading public will know how much risk they are taking with each firm since investors will be able to weigh the liabilities along with the excess capital that a Futures Commission Merchant has.

Furthermore, the published financial statement should include everything (i.e. holding company’s financials) since what happens to other subsidiaries of the company can easily effect the regulated FCM. Each company should be required to provide a link to its financials on its own homepage so that the public can do its proper due diligence.

Too often, those FCM’s that are teetering on the edge of bankruptcy lure customers in by offering unsustainable gimmicks (dirt cheap commissions, account opening bonuses) that temporarily puts off the inevitable. Customers should be aware of the perilous finances of those FCM’s that would offer these kinds of gimmicks before opening an account with such a firm. PFG Best was a classic example of a firm that used such gimmicks as they routinely low balled their competitors with uneconomical discounts that no reputable, legally compliant firm could match.

2) Require all FCM’s to Employ a Top Ten Accounting Firm:

There need to be much higher accounting standards than currently exist in the FCM world. The Platt Group publishes an annual ranking of public accounting firms that could be used by FCM’s. Whether it is top 10 or top 25, the main point is that FCM’s must use a nationally recognized and respected accounting firm that could apply the same tough standards to FCM’s that publicly traded companies must meet.

The Public Trust
While no one proposal will guarantee that a future FCM will not fail, these proposals will help restore the confidence of traders by bringing greater market transparency and accountability into the world of futures/forex trading.

Traders can show their support for these proposals by leaving comments with the CFTC using the following web page:

http://comments.cftc.gov/PublicComme...m.aspx?id=1250


Charles Delano
Director of Government Affairs
FXCM, LLC
http://www.fxcm.com/financials.jsp
  • #198
  • Edited 7:33pm Aug 6, 2012 12:18pm | Edited 7:33pm
I just don’t get why FXCM is posting here... Ain't it a bit like being a vulture. Damn.

You guys have so many law suites/fines against you, pls stop…

It ain't helping anyone besides yourselves.


Ramy3
Director of my accounts.
Ramy3, LLC.
Fuck Forex Factory.Wake up people.
  • #199
  • Aug 6, 2012 12:49pm Aug 6, 2012 12:49pm
Quoting FCM-Reform
This week the CFTC will be holding a public roundtable to address the concerns of traders in response to the bankruptcies of PFG and MF Global. FXCM would like to announce its own proposals to help restore confidence for futures and forex traders in the United States.


Proposals to Bring Full Market Transparency and Accountability to the Futures/Forex Industry

...
Have you already puked today? If not... wow.

How is this supposed to fight white collar crime like execution manipulation that generates much much more profit than the money that has been lost in those cases? How does publishing strong financials help when those financials have been aquired by such fraudulent activities?

  • #200
  • Aug 6, 2012 12:51pm Aug 6, 2012 12:51pm
yeah sure have a round tree discussion with the wolves who guard the hen house and the herd grazing in the distant valley.

If CFTC, NFA et all want to bring confidence back heads need to roll at these inept excuses for regulation.

Client funds need to be insured, these funds sit in the brokers bank account so make the bank insure these funds and segregate them with a certain guarantee of funds to trade with for the trader.

Make the brokers comply electronically where the regulators get notices if bank balances fall below certain thresholds within any one 24hr period.

This is 2012, we have apps on cell phones that we can track balances from our own checking / savings accounts so there is no excuse good enough for the level of stupidity these "out to lunch" regulators have shown over the past several years.

The audits should be done electronically, with no ability of anyone person or group of persons to distort reality or cook the books to make you think the firm is illusionary sound when it's not.

Remove Brokerage heads from NFA / CFTC positions of power. This is certainly a conflict of interest and should not be allowed. No any one brokerage head should sit on any advisory board for NFA / CFTC.
0 traders viewing now