The Financial Times is reporting the FBI has now gotten involved in the case of the $200 million in missing funds from a Chicago- and Iowa-based brokerage.Meanwhile, the CFTC has lodged a formal complaint against the firm, Peregrine Financial Group, according to Bloomberg.
“From at least February 2010 through the present, PFG and Wasendorf failed to maintain adequate customer funds in segregated accounts as required by the Commodity Exchange Act and CFTC Regulations. The Complaint further alleges that defendants made false statements in filings required by the Commission regarding funds held in segregation for customers trading on U.S. Exchanges.”
The whereabouts of the missing $200 million are currently unknown, the complaint says.
According to Reuters, Jefferies has begun liquidating clients’ positions in the fund.
The FT cites a PFG representative saying the firm’s regulator, the National Futures Association, “had intervened after [CEO Russell] Wasendorf had left a suicide note ‘saying he had done something wrong.’ “
According to a complaint filed by the NFA, PFG was found yesterday to be short $200 million in customer-segregated accounts.
The complaint was filed hours after Wasendorf was found in his car having apparently attempted suicide.