Posted on July 13, 2012 | Investor Update
Nine months after the collapse of MF Global, another futures trading firm has imploded. Peregrine Financial Group (PFG), also known as PFGBest, filed for Chapter 7 in federal bankruptcy court on Tuesday. The filing occurred a day after the firm’s founder, Russell Wasendorf Sr., attempted suicide. Wasendorf is accused of misappropriating customer funds, making false statements and fraud.
Details of what happened are still emerging, but the National Futures Association alleges that PFG claimed to have in excess of $220 million in customer accounts, when it actually only held $5.1 million. Wasendorf is said to have falsified bank statements as far back as February 2010. Regulators discovered the discrepancy while researching the company’s possible involvement with a Minnesota Ponzi scheme.