Agree. I am not a legal expert, but as the industry pays these NFA fees for a service, namely protection, why should a law suit not make any sense?
Thanks for the links, very interesting stuff... Gensler and Corzine working at the same time at Goldman... it's an old boys network... I remember back when I worked at a small M&A firm, we hired a colleague from Goldman... I remember very well that he told me that the whole capital markets have been invented to screw the man in the street... seems like this is true in many different ways...
I am wondering whether the companies of the other NFA directors or other cases of PO Box bank statement verifications or the usage of small auditors are now scrutinized with more intensity... if they take this seriously, they would do it...
I was wondering also, how one can do this for 20 years from a psychological point of view... I mean, what kind of person do you have to be to do that? What are your thought processes and feelings during this time? How can you live with that for so long? Okay, finally he couldn't (if it was not fake, what I do not believe), but 20 years is a veeeerryyy long time...
A psychological profile of Wasendorf Sr. would be interesting... (though it will not help to get any money back)
brevco, thanks for your consent. Then your friend surely knows how insurance companies are working. They would never accept this (bad black'n white copies, hand written account statements, no further proof etc.).
And furthermore, how many times could you as an insurance advisor pay out an insure benefit just by oral statement before you would be sued for fraud? How many times did you get a loan just by submitting blottesque statements?
As long as it is just segregated customer money and the whole integrity of the us futures and bank industry, regulatory authorities and governments on stake, I am asking what else?
Last edited by Serninja; July 14th, 2012 at 09:46 AM.
Here's an interview with James Koutoulas of the Commodity Customer Coalition recorded on CFRN. Most interesting part of the interview is the first 10-15 minutes. James spoke with some people at PFG and it is my understanding that with the assets that are frozen, James estimates that PFG customers should be able to get back between 55% - 70% of their funds. That does not include going after anything that Wasendorf might have embezzled so we might actually get whole once this fiasco is all over but who knows how long that will take?
CCC held a public conference call on the PFG situation on Wednesday evening. Koutoulas said that the fact that PFG assets have been frozen and the firm is in a Chapter 7 liquidation instead of Chapter 11 reorganization is a positive for customers. He also noted that the bankruptcy filing indicates that PFG has considerably more assets than liabilities, which is a positve for customers, though he added, "It is too early to tell [what assets are available to customers]."
Attorney Greg Collette who has been working with the CCC on MF Global stated that he would be filing a class action suit against PFG. Details can be found through the CCC website.
In other PFG news Bloomberg is reporting that U.S. District Judge Rebecca Pallmeyer appointed Michael M. Eidelman of Chicago’s Vedder Price PC as receiver, placing him in charge of the business.
Bloomberg is also reporting that distressed debt traders are putting a very low price on PFG customer claims. According to Bloomberg CRT Capital Group LLC is valuing those claims between 22˘ and 25˘ on the dollar.
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I also think that more money would allow them to hire people with experience instead of kids just out of college following a poorly designed checklist. Or does the NFA do that on purpose to protect it's dues paying members?
The majority of posters here if doing the PFG audit would have either noticed the hand written bank statement balance or would have directly contacted the bank to verify the balances. Or they would have noticed the Iowa PO Box address on the statement. It's just common sense. Do any banks use a PO Box address for important forms? I doubt it.