NFA shuts PFG down, puts it in liquidation only status, founder attempted a suicide

Another MF Global incident may be looming in the horizon. PFG Best just released this dramatic statement to its clients: “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 […]

NFA publishes MRA action against PFG – over $200 million may be missing

Following up on the earlier story of NFA putting PFG in liquidation mode only NFA just released a little bit more information in its MRA action again Peregrine Asset Management Inc and Peregrine Financial Group Inc: NOTICE OF MEMBER RESPONSIBILITY ACTION: On July 9, 2012, NFA’s Executive Committee issued a Member Responsibility Action (MRA) against Peregrine Financial […]

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Another MF Global incident may be looming in the horizon. PFG Best just released this dramatic statement to its clients:

“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.”

Apparently NFA and CFTC just walked into PFG’s offices and shut the broker down. According to our sources its Founder Russell Wasendorf attempted a suicide last night and some money may be missing from PFG’s accounts.

We’ll continue updating once new information flows in.

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18 Comments

  1. BigPiping

    Holy Shit.

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  2. Kyle Waitkunas

    WOW. I was researching them mere weeks ago to deposit $35,000…..

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  3. jean pierre sejean

    are the deposits guaranteed by some government body ?

    thank you …

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  4. Kyle Waitkunas

    My IB, BackBayFX, actually talked me out of it and directed me elsewhere. They must have caught wind of what was going on there. Close call, wow….. Still in shock.

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  5. Luger

    They have an aggressive sales who will hound you 24/7 to get your business by offering the latest technological gimmicks. No substance whatsoever.

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  6. Luger

    There are no shortages of future episodes of “American Greed” coming near you.

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  7. shopster

    are the deposits guaranteed by some government body…… ?

    hahahahahahahaha…………………:)

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  8. Kyle Waitkunas

    PFG was the worst though. They called me a lot these last few months.

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  9. capt tom

    I hope the sob Wasendorf is dead and burns in Hell…I was a MF Global customer…now this…

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  10. rajiv

    We always said NFA broker is best in for trading
    i think their is not NFA broker left from hitting

    GAIN CAPITAL GROUP LLC ________http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=2461

    Fxcm _______2M-Fine

    FXDD_______http://forexmagnates.com/nfa-hits-fxdd-with-multiple-charges-including-asymmetric-slippage-fine-will-cost-it-over-3-5m/

    IKON GLOBAL MARKETS
    _________http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=2618

    MFglobal

    and list is so one ,huh!

    No idea why our mind is set and always thought that NFA regulated broker is best for fx trading.

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  11. Thomas Straton

    michael you sound like an employee or family member. what about the 176 employees & their families that work at beaver creek. who in fact were begged to move to hooterville from chicago. the employees of my veronas turned away from work today & the resturant stripped. was russ thinking about them when he played fast & loose with investors money? no, he was just greedy. last thought if your going to commit sucide you do it. not where you can be saved. not at 8:00 am in the parking lot on a business day. he was to weak to turn himself in & face his employees, friends & family. suicde is the most selfless act you can take. guess greed is a comfortable blanket to keep you warm.

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  12. lup

    Hi Michael,

    I want to congratulate you – you were the first one to release the news even before the NFA posted the MRA on their website – kudos!

    I think this is a facinating story. This election year, both Obama and Romney are battling Dodd Frank, and regulation, overall in Wall St. Already the U.S. Senate Agriculture Committee wants to review the PFG case. Also, there is a big debate in the US Sentete Democrats accusing the Republican Congress members of withholding funding to both the CFTC and the SEC. You add to that Barclay’s Dimond case with the Libor in Parlament in the UK, and MF Global Corzine bet, this story may rock the finacial news for some time.

    In my opinion, the regulators are doing their best, and they are unconvering a lot of fraud and loopholes everywhere in the financial industry. It is sad news to hear that someone stole clients’ money to the sum of $200 million, when the business was so successful. When a firm holds almost 1/2 a billioin dollars in customer funds, that firm has plenty of good business. There is also an NFA auditor involved, as a Chief Compliance Officer of PFG. It doesn’t even make any sense to me.

    http://in.reuters.com/article/2012/07/12/broker-pfgbest-grassley-idINL2E8ICB6Y20120712

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  13. Michael Greenberg

    i second that

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  14. Michael Greenberg

    why didn’t you deposit eventually?

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  15. Michael Greenberg

    nope

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  16. Michael Greenberg

    that’s most of the brokers

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  17. Michael Greenberg

    let’s wait to see what exactly happened before judging

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  18. Michael Greenberg

    i’m very upset nfa/cftc didn’t learn anything from MF’s incident

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