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PFGBest Accounts Frozen (PFG scandal big thread)


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PFGBest Accounts Frozen (PFG scandal big thread)

  #411 (permalink)
 
Big Mike's Avatar
 Big Mike 
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Cloudy View Post
Just my speculation after this new video. Sr. , family, and the board of execs including the CFO and that "homemade" personal auditor all knew about it. Rumors were going around. The emails to all the employees during the last week was to help ally fears and to keep customers from leaving until the exposure..

 
 
 
 

That was most humorous. LOL... talking heads fighting with each other...

Money is not the answer... and I also don't think more "insiders" doing the regulating is the answer... answer is true accountability, checks and balances, and complete transparency.

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  #412 (permalink)
 
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 Big Mike 
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CNBC reporting PFG Founder and CEO Russel Wasendorf Sr. Arrested in Iowa After Futures Broker's Collapse

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  #413 (permalink)
 
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 Big Mike 
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Big Mike View Post
CNBC reporting PFG Founder and CEO Russel Wasendorf Sr. Arrested in Iowa After Futures Broker's Collapse

Mike

Source: News Headlines


Quoting 
CEDAR FALLS, Iowa — Russell Wasendorf, the founder and CEO of failed trader Peregrine Financial Group, has been arrested, CNBC has learned.

He has been charged with making false statements to the Commodity Futures Trading Commission beginning back in 2010 and continuing until July 2012.

PFG filed for bankruptcy on Tuesday, and regulators say some $200 million in customer funds are unaccounted for.

One day earlier, Wasendorf — a 40-year futures industry veteran — attempted suicide in his car outside PFG's Cedar Falls, Iowa headquarters.

An apparent suicide note found in the vehicle indicated possible accounting discrepancies at the firm, according to a police report.

Authorities will not discuss Wasendorf Sr.'s condition, but a local newspaper, quoting unidentified sources, reported he is alert and responsive at an Iowa hospital, and possibly able to shed some light on the bizarre events leading up to the firm's collapse.

On June 5, employees received an invitation to Wasendorf's wedding to his fiancee Nancy Palladino, planned for Aug. 4, according to another email obtained by CNBC.

But public records in Clark County, Nevada show Wasendorf and Palladino were married in Las Vegas three weeks later, on June 30. Three days after the wedding, Wasendorf signed over power-of-attorney to his son, Russell Wasendorf, Jr.

Three days later, on July 6, the younger Wasendorf sent the email to employees saying the firm was now poised to break even.


PFG had been under scrutiny for months.

In February, the industry's self-regulatory organization — the National Futures Association — filed a civil complaint against the firm alleging violations involving customer funds.

PFG's in-house attorney has also not responded to CNBC's requests for comment.

Mike

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  #414 (permalink)
 jsouvertjis 
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My trading funds are frozen with PFG. I had a couple people independently suggest opening an account with Infinity Futures. Does anyone have experience with Infinity Futures or could recommend a good futures broker?

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  #415 (permalink)
 olobay 
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FBI arrests PFGBest’s Wasendorf today; charged with making false statements | Des Moines Register Staff Blogs

He has been forging for 20 years.

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  #416 (permalink)
 
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 Big Mike 
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Bloomberg Video


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  #417 (permalink)
 
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 djkiwi 
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karoshiman View Post
I agree, in that case this option is not attractive.

But if a solution similar to SIPC is adopted for futures accounts as well, then this might not be a problem.

Hi I doubt SIPC member firms would be interested increasing their levies to support the futures guys. Bear in mind regulation for securities is much tighter than futures so the insurance premiums for futures would likely be significantly higher.

I just looked at the SIPC annual report for last year. They only have net assets of $200+ million as there are still huge accrued liabilities outstanding from the Bernie Madoff debacle. The latest annual report can be seen here:

SIPC - Securities Investor Protection Corporation > Who > Annual Reports

Even if they setup a separate self funded SIPC type entity for futures the cost to the futures brokers will be significant. The insurance companies will charge significantly for the risk premium due to lack of regulation and clearly incompetent oversight. Whatever vehicle is used, a bond or insurance the premiums to insure "the wild west" will likely be astronomical.

I doubt these firms can ever afford it. Take one of my brokers AMP futures for example. Their net assets are reported to be $800k+, how do you think they can afford say $500k in insurance?

Get ready for higher commissions boys.

Cheers
DJ

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  #418 (permalink)
 
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 Big Mike 
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Source: PFG Head Arrested | ZeroHedge

*WASENDORF SAID HE USED PHOTOSHOP, SCANNER IN FORGERY, U.S. SAYS
*WASENDORF SAID CHOICE WAS GO OUT OF BUSINESS OR CHEAT: U.S.
*WASENDORF'S STATEMENTS MADE IN SUICIDE NOTE, PROSECUTORS SAY
*PEREGRINE'S WASENDORF SAID `I HAVE COMMITTED FRAUD,' U.S. SAYS

While unable to successfully kill himself, it appears the CEO of PFGBest is even less successful at evading the police. As just reported,

*PFGBEST'S WASENDORF ARRESTED IN IOWA
*FED PROSECUTORS CHARGE IOWA FIRM CEO W/ LYING TO REGULATORS:AP
*PEREGRINE CHIEF WASENDORF CHARGED BY FEDERAL PROSECUTORS (with making false statements to the CFTC)
*WASENDORF FRAUD AT PEREGRINE LASTED 20 YEARS, PROSECUTORS SAY


Quoting 
"I have committed fraud. For this I feel constant and intense guilt," the statement said.

"I had no access to additional capital and I was forced into a difficult decision: Should I go out of business or cheat? I guess my ego was too big to admit failure," the statement said, according to the court filing.

...

Mr. Wasendorf relied on "careful concealment" and "blunt authority" to hide his fraud from his employees, he wrote in the note, as detailed in the complaint

Mike

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  #419 (permalink)
 
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 Big Mike 
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jsouvertjis View Post
My trading funds are frozen with PFG. I had a couple people independently suggest opening an account with Infinity Futures. Does anyone have experience with Infinity Futures or could recommend a good futures broker?

Sorry to hear that.

You can find many broker reviews here:

Brokers and Data Feeds - Big Mike's Trading Forum

Mike

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  #420 (permalink)
 olobay 
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How Did Regulators Miss The Red Flags at PFGBest? | Compliancex

Anonymous tipster was warning the NFA about PFG 5 years ago.

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