PFGBest

4evermaat

2nd Lieutenant
Messages
916
this just proves there is no real benefit to regulation until traders accounts are insured against these shenanigans like SIPC or FDIC. Only then will "NFA" be seen as a competitive advantage/a good thing.
What is needed is private fraud insurance, not necessarily gov't backed insurance.
 

PCI

Recruit
Messages
1
Email From NFA Notification <NFAN@NFA.Futures.Org> About PFG

I am sure that if you had monies deposited with PFG you received this email today; but in case you did not I am going to put it on this thread:

[HR][/HR]

Important Message for Customers of Peregrine Financial Group and Peregrine Asset Management - Updated on July 11, 2012

On July 9, 2012, National Futures Association took an emergency enforcement action against Peregrine Financial Group, Inc. (PFG), an NFA Member futures commission merchant (FCM) and Forex Dealer Member (FDM) and Peregrine Asset Management, Inc. (PAM), an NFA Member commodity trading advisor (CTA) and commodity pool operator (CPO) which is closely affiliated with PFG.

NFA took this action because NFA believes that PFG failed to maintain adequate funds in segregated accounts. The shortfall exceeds $200 million. In addition, PFG has filed false reports and has falsified bank records.

It is NFA's understanding that almost all open customer positions at PFG have since been liquidated and that PFG will be generating accurate account statements as soon as possible.
On July 10, 2012, the Commodity Futures Trading Commission (CFTC) filed an injunctive action in Chicago, and as a result, the court has appointed a receiver in the case.
In addition, PFG has filed for liquidation in a U. S. bankruptcy court in Chicago. A bankruptcy trustee will be appointed in this case as well.

When it becomes clear whether the receiver or the trustee will have primary responsibility for liquidating PFG's assets, NFA will provide additional information via email and on the NFA website.
Online access about the CFTC action and the bankruptcy case are available through the PACER system. You can enroll for the PACER service at Public Access to Court Electronic Records.
If you are a customer of PFG and have additional questions, please contact Toni Rossetti (312-781-1422, trossetti@nfa.futures.org), Matthew Pendell (312-781-1318, mpendell@nfa.futures.org) or Lauren Brinati (312-781-1215, lbrinati@nfa.futures.org).
 

Pharaoh

Colonel
Messages
19,691
It appears that PFG was intercepting documents from regulators that their bank was supposed to fill out and forging the replies. Those documents would have verified the presence or absence of funds.
 

BigT1

Sergeant Major
Messages
951
It appears that PFG was intercepting documents from regulators that their bank was supposed to fill out and forging the replies. Those documents would have verified the presence or absence of funds.
If true, that amounts to unbridled negligence on the part of the regulator. The fox has no position guarding the hen house.
This makes my previous point precisely; that only a completely incompetent or complicit Audit Team and/or their Senior NFA Supervisory Staff could authorize this kind of obviously corruptible and stupid procedure; and to have it run on through multiple audits for years, even after a ponzi scheme was uncovered at the firm a year earlier, is absolutely inexcusable.
I wager that even an illiterate Babushka from a 1920's Russian commune (no offense to my dear old wise grandmother) would trust or accept such an methodology as an honest and reliable way to keep count of her chickens and bushels.
 
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BigT1

Sergeant Major
Messages
951
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FXCobra

Banned for uncivilized conduct
Messages
337
New revealations:
Wasendorf confirms to the FBI as true his suicide note details that revealed he was falsifying records for 20 yrs. right under the nose of US Bank Corp & the NFA. FBI arrested him today. Couldn't even kill himself; what a wimp.
PFGBest CEO arrested, admitted massive fraud, FBI says | Reuters
also see:
http://www.forexpeacearmy.com/forex-forum/forex-articles/20785-pfg-best-making-trader-money-disappear.html
This case is becoming more Weird but Very Interesting.

Wasendorf confirms to the FBI the following:

"I was forced into a difficult decision: Should I go out of business or cheat?"
"I guess my ego was too big to admit failure. So I cheated."
"I have committed fraud,"I feel constant and intense guilt."

Maybe some brokers and its Owners/President must learn from the confession by Wasendorf.
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"With careful concealment and blunt authority I was able to hide my fraud from others at PFG,"

Was Russell Wasendorf Sr. trying to remove attention from his Son Russell Wasendorf Jr. by taking full responsibility(one fall better than two with 1 stone)?

I think so.

Especially that Russell Wasendorf JR. had sent an email to PFG Employees at July 6 2012 said that "PFGBEST will be able to run at break even.."

You can read the full Confidential email here: PFGConfidential.png

This email that came after an email on June 5 to PFG Employees invited them to Wasendorf wedding to his fiancee Nancy Palladino, planned for Aug. 4

That was actually a false invitation!! Because Records show Wasendorf and Palladino were married in Las Vegas three weeks later, on June 30.
3 days after the wedding, Wasendorf signed over power-of-attorney to his son Russell Wasendorf, Jr. then 3 days later appeared the July 6 email(picture attached).
As if those people have some Special Secret about the Number 3:)
 

Pharaoh

Colonel
Messages
19,691
I'm not sure going after him for a false wedding invite really qualifies. More than one person I know has had the legal marriage registration done before the public ceremony.

I'm much more interested in the admission that he's been faking bank statements for 20 years.
 

FXCobra

Banned for uncivilized conduct
Messages
337
I'm not sure going after him for a false wedding invite really qualifies. More than one person I know has had the legal marriage registration done before the public ceremony.

I'm much more interested in the admission that he's been faking bank statements for 20 years.
I was not just saying to be interested of the false wedding or what happened after the wedding:D but my main objective from my comment was the PFG confidential Email by Russell Wasendorf JR. to PFGBest Employees compared it to Russell Wasendorf SR. confess to FBI tried to take full responsibility and tried to remove attention from his son and seems in this email that he(Russ JR.) surely knew what's going on in the company but tried to make the turnover or manipulate the situation by cheating employees with false info like ""PFGBEST will be able to run at break even.."" I don't think that the email was innocent and the son knew nothing about his father actions.
 

Pharaoh

Colonel
Messages
19,691
From what I've read, the whole thing blew up when the NFA decided to start getting direct electronic communications from banks. I'm hoping that this is becoming standard procedure and that ALL future checks of balances of broker accounts will be done this way.
 

BigT1

Sergeant Major
Messages
951
PRIME READING!
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Click this link:
PFGBest regulator orders review of audit division | Reuters

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This watershed article reports a key change: The setting of the stage for a Public Execution of the NFA's Executive Staff, its incompetent and/or complicit audit staff, and the utter disposal of its idiotic audit procedures; as I earlier suggested.
ALL FPA readers should really follow this most important key development, intently. This specific action will change everything, forever!
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"(Reuters) - The National Futures Association said it will conduct a review of its audit division as it seeks to answer fierce criticism that it missed two decades of fraud at failed Iowa brokerage Peregrine Financial Group. Just hours after a former customer of Peregrine Financial called for a U.S. congressional investigation of the NFA, the industry group said it was retaining outside law firm Jenner and Block to review its general practices and their execution in the case of PFGBest, as Peregrine is widely known . . . "
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Jenner and Block! Really, Jenner and Block?
Is that Bruce Jenner & H&R Block?; or perhaps BlockHeads, Incorporated?; or maybe (as in NFA football): Block and Tackle?.
Or else: "Let's String'em Up with my Block and Tackle!"?
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PLEASE! You just can't make this stuff up.
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The US Government's own DSRO (the NFA) has now hired a private law firm on your taxpayer's dime, to defend itself against its own incompetence in implementing the Rules of the CFTC that it was created to enforce!
That's like the Social Security Admistration hiring a law firm to protect it from having failed to answer its own phones!
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JUST WHERE THE HELL ARE WE?
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NYSE, NASD, CME, CBOT, NYMEX, ICE, NYCE, PSE, TSE, MWSE, BSE, LME, Forex Brokers!, etc, etc,; can you say "Holy ****!".
Bruce Jenner, can you please save us?
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What really scares me is the real possibility that within the depths of the bowels of this vile government; the NFA might actually be able to win.

Anthony Ingrassia, CTA
NFA ID#: 0278164
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PS - For those interested in the roots of this predictable fiasco; please research the great insurance scandals of the late 19th and early 20th centuries.
These intentionally perpetrated and institutionally implemented frauds culminated in a major congressional investigation in 1911.
During this public expose it was revealed that numerous corrupt banks and insurance companies made it their business to low-ball and skim up-front Life and Health Insurance Premiums, divert the policy reserves, then declare bankruptcy rather than pay any benefits due; if and when push came to shove.
This practice was very blatant and widespread especially amongst "Industrial Insurers" who walked door-to-door to collect premiums weekly from laborers desperate to protect their low income families. Once openly exposed following the "Great San Francisco Earthquake of 1906" that spawned a major market collapse similar to that which has occurred in our time following the popped internet bubble of 2000 and the Al Qaeda attacks of Sept 2001 (Conde Rice notwithstanding); there was an excrutiatingly loud public outcry against the viscious financial industry of that time, just like those you see today!
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This fury and unrest eventually brought the wrath of Congress down upon the Banking and Insurance industries (sound familiar?). Ultimately, the financial industry won a very hard fought battle on the grounds they were Constitutionally Entitled to the right to remain regulated soley by the individual States, rather than by the Federal Government. The bells from that "Grand Victory" are still echoing in the halls of insurance companies today; and are celebrated by the multitude of weak and fraudulent companies that remain quietly domiciled in very poorly regulated states with ridiculously weak insurance laws today. This reality is intentionally perpetrated by spineless and openly corrupt legislators who have both hands in the pockets of the industry today.
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So when you hear the words: "New York State Insurance Department" referenced as being the toughest in the nation, please realize this situation came directly from that very bitter specific battle of 100 yrs ago. When you are encouraged to support in this election cycle "buying your life or medical insurance across state lines", Please know that these are secret code words for crippling, rescinding, and destroying, even those meager protections that directly came from those specific battles. These needs were not mistaken in NYS at that time, where the protection of significant wealth and the underlying necessities of sophisticated risk management were acknowledged and well understood.
Insurance is the earliest form of socializing risk. Good protection costs money. Policies that cost less, pay less; or else they are ponzi schemes designed to fail. Many insurers cannot sell their junk in NY because they don't even try to meet the NY standards required for licensure here. When the cross-state barriers are opened a new species of fool will be created; for with no federal insurance regulation and no sound minimum standard for the firms and their policies, the Charlatans will have a whole new continent of idiots to rape (Go West Young Man!).
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You must understand that NYS has endeavored to protect the public from ever again suffering a recurrence of such a disaster as those that were experienced by the citizens of the 19th century, long forgotten; but no less valid and pertinent today.
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Make no mistake: In Insurance, Investing, and Speculation, anyone promising to take your money now, in exchange for repayment with a gain sometime in the future must always, always, always, be subjected to the most stringent due diligence, and subject to continuous, effective, impartial regulatory oversight; and be held accountable under the regulation of an honest, responsible government; else we are all in the end, doomed.

From one small registered entity to the public.
 
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