NFA Freezes the Assets of PFG Financial
The National Futures Association issued a press release yesterday which stated that it:
Has taken an emergency enforcement action against Peregrine Financial Group, Inc. (PFG), an NFA Member futures commission merchant (FCM) and Peregrine Asset Management, Inc. (PAM), an NFA Member commodity trading advisor (CTA) and commodity pool operator (CPO) located in Chicago, Illinois.
Full details of the Member Responsibility Action (MRA) against PFG have also been made available, in which the NFA says:
Is deemed necessary to protect customers because PFG has failed to demonstrate it meets the capital requirements of NFA Financial Requirements section 1 [and 4]. Additionally it appears that PFG does not have sufficient assets to meet its obligations to its customers.
According to the BBC this morning:
Chairman Russell Wasendorf Sr was found in his car near its Iowa headquarters, following attempted suicide. The National Futures Association said it had received information suggesting that Mr Wasendorf may have falsified bank records and that it only had about $5m (£3.2m) of the $225m it had claimed to have in a deposit account.
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