Economy

Roland99

(53,342 posts) Mon Jul 9, 2012, 05:12 PM Jul 2012

Futures Brokerage PFG Best Freezes Accounts Following Discovery Of Accounting Irregularity

http://www.zerohedge.com/news/futures-brokerage-pfg-best-freezes-accounts-following-discovery-accounting-irregularity

Just out from futures broker PFG Best to clients, where the owner's suicide attempt apparently has led to a whole new MF Global spin off.

Monday, July 9, 2012

Due to a recent emergency involving Russell R. Wasendorf, Sr., a suicide attempt, some accounting irregularities are being investigated regarding company accounts. PFGBEST is wholly owned by Mr. Wasendorf. Therefore, the NFA and other officials have put all funds on hold, and PFGBEST is in liquidation-only status with our clearing FCM. What this means is no customers are able to trade except to liquidate positions. Until further notice, PFGBEST is not authorized to release any funds. We will update you as any new procedures are stipulated and with any further information as it becomes available.

... And just as the public trust was storming back into the capital markets.

6 replies

= new reply since forum marked as read

Highlight:

Futures Brokerage PFG Best Freezes Accounts Following Discovery Of Accounting Irregularity (Original Post) Roland99 Jul 2012 OP

Geez, I have a little bit of money there... rfranklin Jul 2012 #1

PFGBest Is Now MF Global Part 2 As $220 Million In Segregated Client Money Has Just Vaporized DemReadingDU Jul 2012 #2

CFTC westerebus Jul 2012 #3

CFTC files suit. $200 Million "Shortfall" Roland99 Jul 2012 #4

Apparently going back to 2010.. dixiegrrrrl Jul 2012 #5

maybe they should look in his Christmas Fund. Roland99 Jul 2012 #6

rfranklin

(13,200 posts)

1. Geez, I have a little bit of money there...

Reply to Roland99 (Original post)

Mon Jul 9, 2012, 05:16 PM

Jul 2012

Thank God I lost all the rest in the market before they could steal it!

DemReadingDU

(16,000 posts)

2. PFGBest Is Now MF Global Part 2 As $220 Million In Segregated Client Money Has Just Vaporized

Reply to Roland99 (Original post)

Mon Jul 9, 2012, 07:39 PM

Jul 2012

Oops

7/9/12 PFGBest Is Now MF Global Part 2 As $220 Million In Segregated Client Money Has Just Vaporized

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 MFGlobal has struck again and it's name is PFGBest, 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 futher, and freezing all of its accounts:

"On July 9, 2012, NFA made inquiry with US Bank and learned that rather than the $225 million that PFG had reported as being on deposit at US Bank just days earlier, PFG had only approximately $5 million on deposit at U.S. Bank."

Translation: another $220 million segregated account pillage, in the vein of none other than Jon Corzine and MF Global.

The money has now officially vaporized.

more,
http://www.zerohedge.com/news/pfgbest-now-mf-global-part-2-220-million-segregated-client-money-has-just-vaporized

westerebus

(2,976 posts)

3. CFTC

Reply to DemReadingDU (Reply #2)

Mon Jul 9, 2012, 08:17 PM

Jul 2012

CAN'T FIND THE CRIME

Roland99

(53,342 posts)

4. CFTC files suit. $200 Million "Shortfall"

Reply to Roland99 (Original post)

Tue Jul 10, 2012, 11:15 AM

Jul 2012

CFTC Finally Gets The Memo: Regulator Sues PFG, Says Firm Has $200 Million Customer Fund Shortfall
http://www.zerohedge.com/news/cftc-finally-gets-memo-regulator-sues-pfg-says-firm-has-200-million-customer-fund-shortfall

MF Global 2 is now official. At least one can never accuse ex-Goldmanite, and current head of the CFTC Gary Gensler, as being behind the curve:

U.S. COMMODITIES REGULATOR SUES PEREGRINE FINANCIAL GROUP
FIRM HAS $200 MILLION CUSTOMER FUND `SHORTFALL', CFTC SAYS
CFTC LAWSUIT FILED ONE DAY AFTER FIRM ANNOUNCES NFA PROBE

Hopefully, the CFTC's now meaningless action will help all those farmers whose money has just vaporized. Luckily, they can make it all up on record corn profits.

dixiegrrrrl

(60,010 posts)

5. Apparently going back to 2010..

Reply to Roland99 (Reply #4)

Tue Jul 10, 2012, 01:30 PM

Jul 2012

"In its action, the NFA said PFGBest had about $5 million on deposit at U.S. Bank despite maintaining it had more than $225 million on deposit. Moreover, the NFA believes that when PFGBest reported bank balances of more than $200 million in February 2010 and March 2011, in fact it had less than $10 million for each one of these months. Mr. Wasendorf "may have falsified bank records," the NFA said."
http://market-ticker.org/akcs-www?post=208374

"may have falsified bank records,"????

Roland99

(53,342 posts)

6. maybe they should look in his Christmas Fund.

Reply to dixiegrrrrl (Reply #5)

Tue Jul 10, 2012, 02:17 PM

Jul 2012

Hmm...wonder if he was friends with a particular (missing) Georgia banker?

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