PFG Best (at making trader money disappear?)

aicohn

Corporal
Messages
107
I guess I just don't understand why the CFTC got on this kick to rein in leverage & make absolutely certain US citizens don't deal with overseas brokers. Was it that they wanted US brokers to have lots of money to steal and not let foreign brokers in on the larceny?

I mean, an overleveraged client might have actually been helpful in the case of a PFG Best by exposing the scam earlier. MF Global and PFG Best were both regulated futures and forex brokers operating on US soil. And those futures were traded on an actual exchange (not OTC). Now their clients have been ripped off & will get little money back much later if at all. How has CFTC helped those clients? Wouldn't those clients have been better served at an FXOpen, finfx, etc. ?

I know these are probably stupid questions. CFTC exists to help the brokers rip off the clients. That's most likely the truth here.
 

Geoff Wright

Private
Messages
11
CFTC and NFA seem like a huge, pointless, corrupt bureaucracy to me. What is their point if they can't prevent things like this from happening? Their most basic function should be to regulate that a broker cannot steel its clients' funds. This is a huge failure and makes their regulation seem like a sham.
 

FreddyFX

Sergeant
Messages
394
(i swear, i am so sick and tired of fraudsters that at this point, should i get screwed, i will not turn to the FPA, police or the CFTC. no. what is needed are more persuasive measures, like putting a contract out on any of those guys if their outfits screw us. that'd truly put the fear of god into those dirtbags. that's what it has come to. back to the middle-ages when egregious attacks on one's wealth were answered by sword and axe. the world is not evolving--it is devolving.)

I very much like the poster of above.
That is how matters like this are dealt with in Latin America.

ALL this USA lawyer stuff does not do anything, than ONLY fill the pockets of the lawyers.
You wonder how many scammers there are.
 

Dermolikesprofit

Sergeant
Messages
158
Wow, this came as a surprise, I am glad I only ever got as far as having a demo account with them, I thought these were one of the good and safe guys, one cannot trust anyone nowdays it seems. The finiancial world is looking like a place where only white collor criminals are welcomed with open arms to scam and swindle what little savings old ordinary joe on the street has. The arrogance and greed of these people is beyond belief.
It was just last week I received an email from some company hailing PFG-Best fantastic track record "secure and highly regulated U.S. brokrage" and looking for me to open an account so they could trade it for me! When I clicked on the link two days later it did not work!?
These so called Regulators seem to have no teeth or any effect.
 

FREDDIE FREEMAN

Recruit
Messages
3
There was an invitation to me to join them for a course in Futures trading, and it was sent to me about SIX weeks ago. They pulled it off the website about two weeks ago and postponed to the month of July2012. That was strange. I let it go at that. and today I received this notification from them. It is in quote-unquote...

""Hi, this is Curt, your instructor.

I was able to locate a spreadsheet with all your emails from when I uploaded your credentials into Adobe Connect. Please see below.

Due to unforeseen and horrible circumstances, PFGBEST's Summer 2012 semester of Introduction to Futures Trading has been cancelled. I apologize for not sending an email earlier as our mainframe and network were locked down, and I couldn't access the class list.

PFGBEST has been accused of misappropriation of funds and investigations are underway. My heart goes out to PFG's clients, the Wasendorf family and folks everywhere who are losing confidence in the integrity of the financial markets. It's a true tragedy and my thoughts and prayers are with all. Below is a company statement issued yesterday.

MONDAY, JULY 9, 2012
Due to a recent emergency involving Russell R. Wasendorf, Sr. – a suicide attempt this morning – 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 by CFTC and NFA and other authorities.

I still hope to fulfill my obligations to you in teaching this course; however, it will be under completely different circumstances. I’ll keep you posted and if you’d prefer I not email, please let me know.

More information is available on the National Futures Association website and my most sincere apologies to all.

Be Well,
Curt""

Mmmmm...what a way to go!! A nut case.. in my humble opinion. Hope he recovers and then bring him back to face the music and then hang him by the meatballs in the public square, for everyone to see. I am not a sadist, but just hand him whatever he deserves and then lock him up and throw away the key..

Freddie.
 

Pharaoh

Colonel
Messages
20,176
The regulators certainly could have kept PFG on a tighter leash. On the other hand, if we had no regulators, how much longer would PFG gotten away with making client money vanish?
 

BigT1

Sergeant Major
Messages
951
Folks,
As a registered CTA, I am sickened by this occurance. Perhaps I can shed some light on the root of this problem; and pose some possible solutions.
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First, CTFC is the governmental body that is charged by Congress to set the rules and regulations codified by law. The CFTC has established and charges its DSRO (Designated Self-Regulatory Organization), the NFA, to audit and enforce their rules. Due to the low pay scales for such federal government employees, the NFA (and the NASD, the stock counterpart under SEC authority) basically wind up hiring cub lawyers and college grads in Accounting and Finance to staff their audit teams. In general, these employees have little or no prior fiduciary experience, and limited knowledge about the instruments, about trading, about life. To make things worse, in general they have no intention of remaining in these entry level positions as a career due to these conditions. Rather they use their first job as a regulator to parley their newfound acquaintenceships within the firms they are charged to audit into higher paying careers jobs, after a few years with their SRO.
Therefore, they have little incentive to aggressively inspect, irritate, or uncover anything other than the most blatant incompetence or malfeasance. The main goal is to catapult their personal careers in the financial industry and you don't do that by being the bad cop. Indeed you bend over backwards to assist the firm in correcting any issues found.
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Part of the answer is for the US government to wake up and authorize the hire of experienced, senior people, those who have been regulated and have a clean 20 yr work history and do so at proper industry salaries. Furthermore, prohibit them by contract from later joining any firm they have audited or who has had a negative regulatory history for a period of 5 years after working for the SRO.
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Secondly, The Banks that profit from, and are hired by, the FCMs and Broker-Dealers to act as custodians of the segregated account funds, should be required and be held responsible for monitoring the reported statements of their financial customer firms to ensure that daily, the balances claimed by the customer do not differ signifigantly from the balances shown on the books of the bank. If they do, it should be immediately reported to the SRO. As usual, the banks get a free ride, paying zero interest on segregagted funds, and should be held criminally and financially responsible for failure to oversee their regulated clients' balance statements. If they don't like it, they don't have to do this kind of business.
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Third, There should be enacted the most serious criminal penalties for any Licensed Financial Professional who intentionally diverts a clients' funds. At the Executive level, I believe this should extend to the death penalty; even though for the general public I have always been opposed to it. When one voluntarily accepts the mantel of fiduciary responsibility for another's assets, and thus gain the priviledge of earning outsized salaries, bonuses, and commission, one should be held to the most stringent standards.
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Just one mans's opinion.
Anthony Ingrassia, CTA
NFA ID#: 0278164
 
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craigthinks

Private
Messages
11
I have a small amount there through a broker that uses PFGBest for future trades. Just sucks, and I asked the broker about insurance and they said, none. I believe many of the major broker and clearing houses have small insurances of customer money. NFA, National Futures Association sucks in there handling too. This is the second big one this year.
 
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