Jul 25

Gary Gensler Explains How CFTC Allowed PFG To Steal $200 MM In Client Funds 8 Months After MF Global (ZeroHedge, July 25, 2012):

Former Goldman appartchik Gary Gensler is about to take the stage (again) and explain why the CFTC should exist at all after allowing not only MF Global but a few weeks ago, Peregrine Financial, to steal hundreds of millions in client money without any regulatory supervision at all. All we can say here is: Free Corzine!
Continue reading »

Tags: , , , , , , ,

Jul 14

PFG Head Arrested (ZeroHedge, July 13. 2012):

UPDATE: Suicide note details added:

  • *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

What is probably more concerning to him now is the fact that he was not a Presidential bundler – as the Big House is definitely calling…

See also:

The Chronology Of A Collapse: Santelli’s Primer On The PFG Debacle

Where The ‘Segregated’ PFG Client Cash Is

PFG Is Now MFG(lobal) Part 2 As $220 Million In Segregated Client Money Has Just Vaporized

Tags: , , ,

Jul 12

The Chronology Of A Collapse: Santelli’s Primer On The PFG Debacle (ZeroHedge, July 12, 2012):

There remains some confusion about the timing of actions around the PFG Best disaster. From withdrawn salary cuts to liquidation-only orders to forced liquidations from Friday to today, CNBC’s Rick Santelli provides a succinct and shocking insight into what real money accounts and brokers have dealt with and continue to try to comprehend. The sad truth about where the money went is summed up by his guest that “we’re just hearing rumors; it could be, on a percentage basis, worse than MF Global.”

Tags: , , , , , ,

Jul 10

See also:

PFG Is Now MFG(lobal) Part 2 As $220 Million In Segregated Client Money Has Just Vaporized


Where The “Segregated” PFG Money Is (ZeroHedge, July 10, 2012):

Or rather isn’t. Just in case there is any confusion this morning as to where the “segregated” client cash may have vaporized to…

From: “Herb Kral” <xxxx@pfgbest.com>
To:
Date: Tue, 22 Nov 2011 10:07:55 -0600
Subject: RE: Follow up

Dear [XXX]

All of our client funds are held at JP Morgan Chase in a segregated account. Jeffries does hold our margin money for positions.

Thanks,

Herb Kral, Director of Automated Trading
311 W. Monroe, Suite 1300
Chicago, IL 60606
312-775-3581 | 312-775-3095 fax

Tags: , , , ,

Jul 10

PFG Is Now MFG(lobal) Part 2 As $220 Million In Segregated Client Money Has Just Vaporized (ZeroHedge, July 9, 2012):

UPDATE 2: Have no fear though since as recently as January 2012, the CFTC did not find any “material breaches of customer funds protection requirements” at FCMs (firms like PFGBest)

UPDATE 1: Account-holders may not be so surprised to find who is the custodian for the PFGBest FX accounts: none other than huge MFGlobal fans, JPMorgan!

Remember when the entire segregated account fiasco was supposedly fixed in the aftermath of the November 2011 MF Global bankruptcy, and where regulators: the CFTC, the SEC, the CME, and anyone you asked, swore up and down this would never happen again? Turns out that 7 months later, the spirit of MFG has struck again, only this time with one letter switched: it is now known as PFG, as we suggested first 3 hours ago when we broke the story. From the just filed affidavit by Lauren Brinati who is working with the National Futures Association, which in turn has just filed notice prohibiting PFGBest from operating further, and freezing all of its accounts: Continue reading »

Tags: , , , ,