Fall of Peregrine’s Wasendorf Presaged in Christmas Toast
By Matthew Leising and Anastasia Ustinova – Bloomberg
Peregrine Financial Group Inc. employees gathered for their annual holiday party at the River East Art Center, overlooking the Chicago River. After enjoying appetizers and an open bar, they heard the kind of somber note you don’t expect from the boss at such a fete: even businesses that get off to a good start aren’t guaranteed to last.
Peregrine case focuses on Wasendorf Snr
By Gregory Meyer, Kara Scannell and Arash Massoudi in New York – Financial Times
The owner of Peregrine Financial Group may have deceived company officials including his own son as he made up false bank statements to hide a $200m gap in customer accounts, people familiar with the investigation into the shortfall said.
CME to Make Farmer Insurance Fund Available to Peregrine Clients
By Jacob Bunge – Dow Jones
CME Group Inc. (CME) said Wednesday that family farmers and ranchers with assets caught up in the collapse of brokerage Peregrine Financial Group Inc. will be eligible to draw upon an insurance fund set up in the wake of the futures industry’s previous big scandal.
Peregrine Futures Clients Aren’t Protected by SIPC, Chief Says
By Bill Rochelle and Andrew Harris – Bloomberg
Peregrine Financial Group Inc. futures customers won’t have their losses covered by the Securities Investor Protection Corp. even if they were defrauded, the fund’s chief said.
Exclusive: U.S. probing failed broker PFGBest’s use of small auditor
Reuters via Yahoo! News
U.S. futures industry investigators are looking into why Iowa-based collapsed brokerage PFGBest used a tiny accounting firm that appears to be operating from inside a suburban Chicago home to audit its books, according to a person familiar with the matter.
U.S. Bank Draws Scrutiny in Peregrine CEO’s Alleged Fraud -Source
By Jacob Bunge and Matthias Rieker – Dow Jones
U.S. Bank is being examined by investigators in relation to its role in overseeing client funds allegedly misappropriated by Peregrine Financial Group Inc., according to a person familiar with the matter.
Business Woes, Erratic Moves Dogged Stricken Executive
BY JOSH DAWSEY, IANTHE JEANNE DUGAN AND MICHAEL ROTHFELD – WSJ
Friends of Peregrine Financial Group Inc. founder Russell Wasendorf Sr. were looking forward to his wedding Aug. 4 in Cedar Falls, Iowa. But this week, they learned that Mr. Wasendorf had quietly gotten married two weeks ago at the Bellagio Chapel in Las Vegas. It is one of many mysteries involving the 64-year-old futures-industry veteran, who attempted suicide Monday, triggering the collapse of his commodity-brokerage firm and an investigation into $215 million of allegedly missing client money.
Vegas marriage deepens PFGBest mystery as Iowa brokers pack
By P.J. Huffstutter – Reuters
Employees emptied their desks as a local charity collected food from the cafeteria of failed broker PFGBest’s Iowa offices on Wednesday, most still seeking answers to the expanding scandal that has shaken the industry. Two days after the attempted suicide of founder and chairman Russell Wasendorf Sr, regulators are piecing together the alleged fraud that caused more than $200 million of the broker’s client funds to vanish — and the cover-up that hid the fact the money was missing for more than two years.
Peregrine’s Fall Said to Be Tied to Electronic Reporting Shift
By Matthew Leising and Dakin Campbell – Bloomberg
A switch to electronic regulatory filings prompted by the failure of MF Global Holdings Ltd. may have exposed an alleged $220 million shortfall of customer money at Peregrine Financial Group Inc. that prompted the attempted suicide of its founder.
U.S. grain trade wants answers in PFGBest broker scandal
Reuters via Yahoo! News
The largest U.S. grain trade group was stunned by the latest scandal to hit the futures industry when Iowa-based brokerage PFGBest collapsed after regulators accused the firm of misappropriating customer funds.
FIA: Industry ‘Outraged’ Regarding Reports Of Missing Funds at PFGBest
Debbie Carlson – Kitco News
The futures industry is “outraged” regarding reports of missing funds at now-bankrupt futures brokerage Peregrine Financial Group, said a futures industry advocacy group on Wednesday. The Futures Industry Association said the industry as a whole is “outraged at what appears to be an extensive fraud carried out on futures customers of this firm and is appalled that customers may be victims of this deceit. Any violations of the law should be vigorously pursued and prosecuted.”
Peregrine clients angry about alleged shortfall
Lynne Marek – Crain’s
Chicago commodity trading firms with client accounts at Peregrine Financial Group Inc. reacted with frustration and anger this week over news of a possible shortfall in customer funds at the futures commission merchant and brokerage, which filed for bankruptcy Tuesday evening.
Don’t Blink, or You’ll Miss Another Shameful Scandal
By Christopher Barker | Motley Fool
With the rate at which horrifying examples of widespread moral bankruptcy and fraudulent misdeeds are coming to light in the financial industry today, one can scarcely afford a moment’s rest for fear of missing the dastardly disgrace du jour.