PFGBest customer bank account missing some $220 million: NFA

[MNeagle]

Reuters) - One of U.S. broker PFGBest's main customer bank accounts was found to be missing around $220 million in segregated funds earlier on Monday, the U.S. futures industry group said as it froze the broker's funds.

On June 29, PFGBest clearing unit Peregrine FinancialGroup (http://gold-silver.us/forum/#) (PFG) told the National Futures Association that it held $400 million in customer segregated funds, of which over $225 million was on deposit at an unnamed U.S. bank, according to a copy of the NFA's emergency enforcement action.

But on Monday, after receiving information that PFG's founder and owner may have falsified bank records, the NFA said that only $5 million was on account at the bank days earlier. It also said that previous bank balances from February 2010 and March 2011, reported in excess of $200 million, may in fact have held less than $10 million at those times.


http://www.msnbc.msn.com/id/48127900#.T_towvXjL-4

[Glass]

over $225 million was on deposit at an unnamed U.S. bank,

I wonder who the counter party is?

[MNeagle]

PFG Is Now MFG(lobal) Part 2 As $220 Million In Segregated Client Money Has Just Vaporized
http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://gold-silver.us/users/tyler-durden)
Submitted by Tyler Durden (http://gold-silver.us/users/tyler-durden) on 07/09/2012 19:17 -0400



Commodity Futures Trading Commission (http://gold-silver.us/taxonomy_vtn/term/9229)
fixed (http://gold-silver.us/taxonomy_vtn/term/10417)
MF Global (http://gold-silver.us/taxonomy_vtn/term/11921)
None (http://gold-silver.us/taxonomy_vtn/term/118)



UPDATE 2: Have no fear though since as recently as January 2012, the CFTC (http://www.cftc.gov/PressRoom/PressReleases/pr6171-12) did not find any "material breaches of customer funds protection requirements" at FCMs (firms like PFGBest)
UPDATE 1: Account-holders may not be so surprised to find who is the custodian for the PFGBest FX accounts: none other than huge MFGlobal fans, JPMorgan!
http://gold-silver.us/sites/default/files/images/user3303/imageroot/2012/07/20120709_PFG_0.png (http://gold-silver.us/sites/default/files/images/user3303/imageroot/2012/07/20120709_PFG.png)

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 MFG has struck again, only this time with one letter switched: it is now known as PFG, as we suggested first 3 hours ago when we broke the story (http://www.zerohedge.com/news/futures-brokerage-pfg-best-freezes-accounts-following-discovery-accounting-irregularity). 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 further, and freezing all of its accounts:


On or about June 29, 2012 PFG reported to NFA that it had approximately $400 million in segregated funds, of which more than $225 million were purportedly on deposit at U.S. Bank
On or about July 9, 2012, NFA received information indicating that PFG's Chairman may have falsified bank records
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 has just taken place, in the vein of none other than Jon Corzine and MF Global.
The money has now officially vaporized.
It is truly wonderful of the NFA to finally get involved, after PFG's clients have lost about 98% of their cash held with the firm.
In other potential news, a rather prominent New York bank, recently closely associated with marine wildlife, may have just cut its Q2 losses by up to $220 million.
And now for a moment of sarcasm, courtesy of Jack Pearson.

PFGBEST @PFGBEST (https://twitter.com/PFGBEST)
PFGBEST’s goal during MF Global’s demise was to get MF Global customers their money back. fb.me/1tPLObJyL (http://t.co/Bu7to1jh)

February 6, 2012 (https://twitter.com/PFGBEST/statuses/166574275518672896)



Full NFA filing:


http://www.zerohedge.com/news/pfgbest-now-mf-global-part-2-220-million-segregated-client-money-has-just-vaporized?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedg e+-+on+a+long+enough+timeline%2C+the+survival+rate+fo r+everyone+drops+to+zero%29

[gunDriller]

good video @
http://www.youtube.com/watch?v=4Y7GjKu5xaE
about it.

Lauren Lyster, interviewing some Precious Metal guy (coin store that used PFG for hedges), and an Egyptian guy who had an account with PFG because he thought it would be 'safer'.

[Glass]

I was watching the latest Keiser Report and they were talking with a UK guy who was talking about changes and undertakings to financial regulation. It appears the UK Government entered into an arrangement with the City of London to not ever, never prosecute a banking crime. This is apparently on record. It would explain a lot as to why no one has been charged with anything.

[BrewTech]

This series of heists is absolutely mind-boggling.

The funny thing is, if one talks to regular people about financial crimes of this magnitude, most have no idea they are even happening. If you suggest their bank may be directly involved (I've noticed a great number have JPM accounts), they get glassy-eyed and start talking about how many credit card points they are earning...

Don't look for these assholes to cease pillaging for fear they may be caught. They understand public apathy perfectly... indeed it could be said it is their "partner-in-crime".

[osoab]

Been forging for 20 years. I bet this is just another isolated incident too.




http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden) Full PFG CEO Suicide Note (http://www.zerohedge.com/news/full-pfg-ceo-suicide-note)

Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 07/13/2012 - 14:56

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/07/20120713_was1.png


http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/07/20120713_was2.png

[osoab]

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Peregrine Financial CEO To Go Home (http://www.zerohedge.com/news/peregrine-financial-ceo-go-home)
Remember Peregrine Financial, the firm that just like MF Global, ended up vaporizing $200 million in client money after it was revealed that its suicide-challenged CEO Russell Wasendorf was stealing client money for two decades under the nose of the CFTC? Yes? Good. Because in four days, said CEO will be relaxing in the comfort of his own home. It seems odd to us that the man who caused hundreds of clients to lose up to all of their life's savings, will be hanging out on his leather sofa.. if only until such time as a one-way first class ticket to a non-extradition country is consummated. But who knows: perhaps this is all part of the "New Fairness Normal" where fraud and crime is if not rewarded, then certainly ignored.