Futures Brokerage PFG Best Freezes Accounts Following Discovery Of Accounting Irregularity

[Roland99]

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

Just out from futures broker PFG Best to clients, where the owner's suicide attempt apparently has led to a whole new MF Global spin off.

Monday, July 9, 2012

Due to a recent emergency involving Russell R. Wasendorf, Sr., a suicide attempt, 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 and with any further information as it becomes available.

... And just as the public trust was storming back into the capital markets.

[rfranklin]

1. Geez, I have a little bit of money there...

Thank God I lost all the rest in the market before they could steal it!

[DemReadingDU]

2. PFGBest Is Now MF Global Part 2 As $220 Million In Segregated Client Money Has Just Vaporized

Oops

7/9/12 PFGBest Is Now MF Global Part 2 As $220 Million In Segregated Client Money Has Just Vaporized

Remember when the entire segregated account fiasco was supposedly fixed in the aftermath of the November 2011 MF Global bankruptcy, and where regulators: the CFTC, the SEC, the CME, and anyone you asked, swore up and down this would never happen again?

Turns out that 7 months later, the spirit of MFGlobal has struck again and it's name is PFGBest, as we suggested first 3 hours ago when we broke the story. From the just filed affidavit by Lauren Brinati who is working with the National Futures Association, which in turn has just filed notice prohibiting PFGBest from operating futher, and freezing all of its accounts:

"On July 9, 2012, NFA made inquiry with US Bank and learned that rather than the $225 million that PFG had reported as being on deposit at US Bank just days earlier, PFG had only approximately $5 million on deposit at U.S. Bank."

Translation: another $220 million segregated account pillage, in the vein of none other than Jon Corzine and MF Global.

The money has now officially vaporized.

more,
http://www.zerohedge.com/news/pfgbest-now-mf-global-part-2-220-million-segregated-client-money-has-just-vaporized

[westerebus]

3. CFTC

CAN'T FIND THE CRIME

[Roland99]

4. CFTC files suit. $200 Million "Shortfall"

CFTC Finally Gets The Memo: Regulator Sues PFG, Says Firm Has $200 Million Customer Fund Shortfall
http://www.zerohedge.com/news/cftc-finally-gets-memo-regulator-sues-pfg-says-firm-has-200-million-customer-fund-shortfall

MF Global 2 is now official. At least one can never accuse ex-Goldmanite, and current head of the CFTC Gary Gensler, as being behind the curve:

U.S. COMMODITIES REGULATOR SUES PEREGRINE FINANCIAL GROUP
FIRM HAS $200 MILLION CUSTOMER FUND `SHORTFALL', CFTC SAYS
CFTC LAWSUIT FILED ONE DAY AFTER FIRM ANNOUNCES NFA PROBE

Hopefully, the CFTC's now meaningless action will help all those farmers whose money has just vaporized. Luckily, they can make it all up on record corn profits.

[dixiegrrrrl]

5. Apparently going back to 2010..

"In its action, the NFA said PFGBest had about $5 million on deposit at U.S. Bank despite maintaining it had more than $225 million on deposit. Moreover, the NFA believes that when PFGBest reported bank balances of more than $200 million in February 2010 and March 2011, in fact it had less than $10 million for each one of these months. Mr. Wasendorf "may have falsified bank records," the NFA said."
http://market-ticker.org/akcs-www?post=208374

"may have falsified bank records,"????

[Roland99]

6. maybe they should look in his Christmas Fund.

Hmm...wonder if he was friends with a particular (missing) Georgia banker?