NexusFi: Find Your Edge


Home Menu

 





PFGBest Accounts Frozen (PFG scandal big thread)


Discussion in Brokers

Updated
      Top Posters
    1. looks_one Big Mike with 94 posts (100 thanks)
    2. looks_two olobay with 91 posts (76 thanks)
    3. looks_3 nakachalet with 73 posts (22 thanks)
    4. looks_4 ThatManFromTexas with 57 posts (54 thanks)
      Best Posters
    1. looks_one djkiwi with 1.7 thanks per post
    2. looks_two Big Mike with 1.1 thanks per post
    3. looks_3 ThatManFromTexas with 0.9 thanks per post
    4. looks_4 olobay with 0.8 thanks per post
    1. trending_up 261,324 views
    2. thumb_up 588 thanks given
    3. group 66 followers
    1. forum 859 posts
    2. attach_file 81 attachments




 
Search this Thread

PFGBest Accounts Frozen (PFG scandal big thread)

  #241 (permalink)
 
ThatManFromTexas's Avatar
 ThatManFromTexas 
Houston,Tx
 
Experience: Advanced
Platform: NinjaTrader
Broker: Mirus Futures/Zen-Fire
Trading: TF
Posts: 2,265 since Feb 2010
Thanks Given: 1,206
Thanks Received: 4,348


shanmugs View Post
WOW..Check this out..

RCG with tons of CFTC/NFA fines..one over1.6 mil in april 2012...

Case Information

@shanmugs

Get it straight from the horses' mouth (CFTC) ...

Search Results: Rosenthal Collins Group, LLC

The fine you mentioned was for not monitoring an account closely enough of a customer that ended up using it for a ponzi scheme .

They've had numerous CFTC files,but that is to be expected for a 90 year old firm. The claims were mostly small grievances from individual clients that were settled "out of court" and the complaints were dropped.

There was one other significant charge of not paying close enough attention to a rogue client from Texas (not me...) for which they paid a fine.

I didn't see anything serious like misappropriation of funds or falsifying statements.



optionzen View Post
I am really sorry for folks here who have their account with PFG. I really hope every one get their money back. I have an account with Optimus and Vision as its clearing firm, matt is a great guy no doubt. The client money is with the segregated account via Harris BK.
Vision states on its website that their account are protected : Vision Financial Markets - Futures, Securities & Options | Brokerage, Clearing & Technology

Vision Financial Markets LLC is a member of the Securities Investor Protection Corporation (SIPC) which protects customer accounts for up to $500,000 (of which up to $250,000 may be for cash). This protection does not safeguard against a decline or loss in market value of the securities in your account. For more information, read our Asset Protection Brochure.

Does it mean if any thing happens as PFG or MFG magnitude the accounts will be protected? I am just getting bit nervous .

@optionzen

Unfortunately the SIPC doesn't cover futures. Sorry.

In general, SIPC covers stocks, bonds, mutual funds, notes, other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.

I'm just a simple man trading a simple plan.

My daddy always said, "Every day above ground is a good day!"
Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
Build trailing stop for micro index(s)
Psychology and Money Management
Futures True Range Report
The Elite Circle
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
51 thanks
Funded Trader platforms
44 thanks
NexusFi site changelog and issues/problem reporting
24 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
19 thanks
  #242 (permalink)
 Cloudy 
desert CA
 
Experience: Intermediate
Platform: NT7, various
Broker: various, TDA
Trading: NQ,ES
Posts: 2,124 since Jul 2011
Thanks Given: 2,396
Thanks Received: 1,748


cory View Post
no wonder he wanted to be gone, must have learned that trick from Madoff

Horrible. Intercepting documents and forging signatures. For sure this is going to be made into another episode of CNBC's "American Greed".

Visit my NexusFi Trade Journal Reply With Quote
  #243 (permalink)
 olobay 
Montreal
 
Experience: Intermediate
Platform: MultiCharts
Broker: DeepDiscountTrading.com
Trading: CL
Posts: 364 since Jul 2011


Why do we pay CFTC and NFA fees on every transaction we make? Can somebody explain that to me? Aren't they there to protect us investors?

Reply With Quote
  #244 (permalink)
 Midas 
Yellowknife, NT
 
Experience: Intermediate
Platform: Ninja Trader
Trading: Es, 6E, TF
Posts: 35 since Mar 2010
Thanks Given: 21
Thanks Received: 21

Here is some contact info at NFA for PFG customers.


Important Message for Customers of Peregrine Financial Group and Peregrine Asset Management

Reply With Quote
  #245 (permalink)
karoshiman
Munich, Germany
 
Posts: 285 since Apr 2012
Thanks Given: 121
Thanks Received: 117


heywally View Post

...

This kind of incident is why I have upped the paranoia level a bit and recently moved funds from one of the larger brokerages that specializes in low commission, low margin rate trading to another larger brokerage that enables active trading including futures but has their foundation -- and many user accounts -- in longer term investing. The commissions are not as good but I can sleep a little easier (I think.)

...


Hi heywally,

Which firm is the larger brokerage you are talking about? I'm curious about potential alternatives...

Thanks,
k

Reply With Quote
  #246 (permalink)
 
optionzen's Avatar
 optionzen 
Dallas
 
Experience: Intermediate
Platform: ThinkorSwim, Ninjatrader, Multicharts
Broker: Thinkorswim, Ninjatrader Brokerage
Posts: 139 since Nov 2010
Thanks Given: 137
Thanks Received: 106

Thanks for the information Manfromtexas, Lets says my cash account with a futures broker is not protected, even though vision says that there is protection upto 250K . It says that the investment loss are not covered but the cash value is protected. Can you please explain if the cash in the account if not traded is still not protected ??????

Vision Financial Markets LLC is a member of the Securities Investor Protection Corporation (SIPC) which protects customer accounts for up to $500,000 (of which up to $250,000 may be for cash). This protection does not safeguard against a decline or loss in market value of the securities in your account. For more information, read our Asset Protection Brochure.


MAY be Matt from optimusfutures Can explain more on the protection provided...

Reply With Quote
  #247 (permalink)
 
djkiwi's Avatar
 djkiwi 
Mercer Island WA
 
Experience: Advanced
Platform: Ninjatrader/Strategy Desk
Broker: Various
Trading: TF/NQ/ES/Stocks
Posts: 561 since May 2010
Thanks Given: 981
Thanks Received: 1,558


Cloudy View Post
Horrible. Intercepting documents and forging signatures. For sure this is going to be made into another episode of CNBC's "American Greed".

The question here is why in this electronic age were there pieces of paper being mailed and signed at all? Surely electronic monitoring mechanisms should have been placed years ago between the bank and the regulators. It even took them over 9 months after the MF Global collapse to get electronic monitoring in place which is the only reason he would have been found out. Electronic monitoring should been in place Day 1 priority after the MF Global fiasco. Not that it would have helped the clients as the money was stolen a couple of years back.

The other point to note is the regulators themselves did not apply basic common sense. I suspect at some point the CEO of PFG wrote a forged letter to the regulators impersonating the bank. The letter would have told them the bank had moved location and to now send the documents to the new PO Box he had setup. This enabled him to intercept the documents. You would think the regulator would have applied common sense and instead of taking this letter at face value would have at least phoned the bank to see that this was a legitimate request.

As a first step right now the regulators should check their records and make sure they don't have any other phony letters from Broker banks saying they have moved....

Cheers
DJ

Reply With Quote
Thanked by:
  #248 (permalink)
 
liquidcci's Avatar
 liquidcci 
Austin, TX
 
Experience: Master
Platform: ninjatrader, r-trader
Trading: NQ, CL
Posts: 866 since Jun 2011
Thanks Given: 610
Thanks Received: 1,091


optionzen View Post
Thanks for the information Manfromtexas, Lets says my cash account with a futures broker is not protected, even though vision says that there is protection upto 250K . It says that the investment loss are not covered but the cash value is protected. Can you please explain if the cash in the account if not traded is still not protected ??????

Vision Financial Markets LLC is a member of the Securities Investor Protection Corporation (SIPC) which protects customer accounts for up to $500,000 (of which up to $250,000 may be for cash). This protection does not safeguard against a decline or loss in market value of the securities in your account. For more information, read our Asset Protection Brochure.


MAY be Matt from optimusfutures Can explain more on the protection provided...

@optionzen SIPC does not cover futures accounts it covers securities accounts. If you trade futures at VFM your account is a futures account and is not insured under SIPC.

"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
Started this thread Reply With Quote
Thanked by:
  #249 (permalink)
 
ThatManFromTexas's Avatar
 ThatManFromTexas 
Houston,Tx
 
Experience: Advanced
Platform: NinjaTrader
Broker: Mirus Futures/Zen-Fire
Trading: TF
Posts: 2,265 since Feb 2010
Thanks Given: 1,206
Thanks Received: 4,348


optionzen View Post
Thanks for the information Manfromtexas, Lets says my cash account with a futures broker is not protected, even though vision says that there is protection upto 250K . It says that the investment loss are not covered but the cash value is protected. Can you please explain if the cash in the account if not traded is still not protected ??????

.

@optionzen


The SIPC was created due to a financial crisis in the equities market. From Wikipedia ...

SIPC was born in the shadow of the "Paperwork Crunch" of 1968-70 as a means to restore confidence in the U.S. securities market. During this period, An explosion in the volume of trading had occurred. A system designed to handle an average three million share trading day was incapable of dealing with the thirteen million share trading day common in the late 1960's. The resultant breakdown in the securities processing mechanism caused chaos as the number of errors in recording transactions multiplied ... In December 1968, member firms of the New York Stock Exchange had $4.4 billion in "fails to deliver" and $4.7 billion in "fails to receive." Brokers and dealers were finding it difficult, if not impossible, to ascertain their own financial condition.' ... This operational and financial crisis forced more than one hundred brokerage firms into liquidation causing thousands of customers to be seriously disadvantaged.

In response, the Securities Investor Protection Act of 1970 was enacted as a way to quell investor insecurity and save the securities market from a financial crisis.

Should there be an SIPC for the futures market... in my opinion ... yes ... but in the current political climate anything that hints of regulation or government involvement would never be approved by Congress.

I'm just a simple man trading a simple plan.

My daddy always said, "Every day above ground is a good day!"
Reply With Quote
  #250 (permalink)
 traderwerks   is a Vendor
 
Posts: 692 since Jun 2009
Thanks Given: 436
Thanks Received: 465



ThatManFromTexas View Post

Should there be an SIPC for the futures market... in my opinion ... yes ... but in the current political climate anything that hints of regulation or government involvement would never be approved by Congress.

True, more regulation will probably not happen.

I wish they could have 'excess margin' covered by SIPC, or swept into a FDIC insured account, but that won't happen either. Part of the vig they get from 'excess margin' would be eaten up.

Math. A gateway drug to reality.
Reply With Quote




Last Updated on April 6, 2016


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts