PFG Investment Scandal Shakes Financial World
Peregrine Financial Group (PFG), a futures trading firm, is facing regulatory action and federal charges for allegedly lying to auditors and defrauding customers to hide millions in losses. The company currently cannot account for $215 million in customer funds.
PFG Timeline of Events
The scandal unfolded last Monday (July 9, 2012) when a probe by regulators at the National Futures Association (NFA) led to a freeze of the company’s assets and a suicide attempt by the company’s founder and CEO. Now, a week later, federal regulators have only just begun what promises to be a lengthy investigation into decades of fraud and embezzlement.
July 9, 2012- The NFA prohibits PFG from doing business after finding that it “failed to demonstrate that it meets capital requirements and segregated funds requirements.”
July 9, 2012– PFG founder and CEO Russell R. Wasendorf attempts suicide, leaving behind a note detailing 20 years of fraud and embezzlement.
July 10, 2012– PFG files for bankruptcy, the CFTC files to freeze the company's assets.
July 10, 2012– The CFTC sues PFG and Wasendorf, alleging they misappropriated at least $200 million in client money.
July 13, 2012- Wasendorf is arrested for making false statements to the CFTC in connection with an alleged $200 million fraud involving customer funds.
July 13, 2012– A customer files a class-action complaint on behalf of anyone who had money on deposit with Peregrine from January 2010 to July 10, 2012.
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