Problems at PFGBEST?

[Predictor 11]

If this turns out to be true/serious then this could be very bad for futures industry. I know PFGBest is sponsoring Robbin's World Cup. If not resolved quickly or if the issues are serious then this could have a very bad effect on many traders....

 

"

One broker at the firm said that Wasendorf's son, Russ Wasendorf, Jr, told employees about the events earlier in the day, saying that a suicide note had been found alluding to some kind of financial troubles with the company.

 

"Everybody here is obviously in shock," said the broker, adding that some employees had begun packing up their desks shortly after the announcements.

 

"Pretty much everybody around here said we're doomed."

http://www.reuters.com/article/2012/07/09/broker-pfgbest-idUSL2E8I9E5620120709

 

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

Edited July 9, 2012 by Predictor

[minoo 11]

Is this SEC Freeze on Aubrey Lee Price of PFG LLC; PFGBI LLC, etc on 2nd July linked to PFGBest ? ? ?

 

(Note I am asking; Dont jump to any conclusions)

 

Aubrey Lee Price, et al.

 

But Sure one more Drama PFG to be played out when MFG is still on going . . . .

[Qiman 10]

I have been following this story pretty closely, it is a very bleak and serious situation indeed and will just add to the damage that has been done to the futures industry. In general, there is so much fraud and lack of character out there. One of my sisters used to be an internal auditor for a university, and the stories that I heard . . .

 

All of us must do our due diligence, there is always more than just one cockroach. There are risk analysis studies of FCMs out there, and I am watching these as conditions evolve. I would venture that there are more than a few on these boards who are doing business with firms who are near the bottom of the ratings, as was PFGBest. I had been getting emails from them asking for my business, as I used to get daily emails from MF Global. Nice ad copy doesn't tell you a thing about the underlying fundamentals and integrity levels. One of my accounts was recently shifted for clearing from one firm to another, and once I investigated the shift and the firms involved, I was glad that it had happened!

 

Here is a good article on the impact on the futures industry:

 

http://www.futuresmag.com/2012/07/10/pfgbest-mess-raises-systemic-issues-for-futures-in?eNL=4ffc4a54150ba0a04e000177&ref=hputm_source%3DDailyMarketFocus&utm_medium=eNL&utm_campaign=FUT_eNL&_LID=93114300

Edited July 10, 2012 by Qiman

[Predictor 11]

For those who don't know..

 

PFGBEST was the sponsor of the free SFO magazine -- which I felt was rather nice -- now closed

 

They were the sponsor of Robbins World Cup. I believe they owned the World Cup, as well -- but not sure.

 

They were also one of the only -- if not only -- broker carrying NADEX products. I know from speaking with the NADEX officials that they were very big on trying to make their exchange transparent and a big effort was to bring on independent FCMs like PFGBest. So, this is surely a blow for them.

 

I believe they were the largest FCM, as well.

 

All of these things are bound to have negative consequences.

[Qiman 10]

Yes, definitely a blow for Nadex, since PFGBest was heavily promoting their binary options.

 

As far as being the biggest FCM, they were pretty average in size, they had about 400 million in supposedly segregated funds, but there are FCMs with billions in (hopefully) segregated funds. Here is one of the tables I use for my research into FCMs:

 

http://www.cftc.gov/ucm/groups/public/@financialdataforfcms/documents/file/fcmdata0412.pdf

[khamore1 10]

It will be a good idea and convenient for all forum members if the moderator will merge this thread with the other one running right now on the same subject what do you think?

[Qiman 10]

Breaking news from Reuters:

 

 

Russell Wasendorf Sr., the sole owner and chairman of stricken futures broker Peregrine Financial Group, Inc., intercepted and forged bank documents for more than two years to cover up hundreds of millions of dollars in missing money, a person close to the situation told Reuters.

 

Exclusive: Iowa futures broker forged bank records for years - source | Reuters