cornixforex wrote -
Registered: Jan 2011
Posts: 1276
07-31-12 10:59 AM
I don't care much to prove anything here or anywhere else. My methodology is so simple monkey could follow it and make money.
......
About many 1000 operations with hit 66%
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For our full coverage of the financial fallout at Peregrine Financial Group, click here.
CEDAR FALLS, Iowa --- Peregrine Financial Group filed for bankruptcy Tuesday and the U.S. Commodity Futures Trading Commission filed a concurrent complaint against the company and its owner, Russell Ralph Wasendorf Sr., to freeze company assets.
The action came a day after Wasendorf, 64, allegedly attempted to take his own life and another regulatory arm, the National Futures Association, took action against the company.
The company filed for bankruptcy Tuesday under Chapter 7 of the U.S. Bankruptcy Code, usually the course companies take toward liquidation. But the CFTC action seeks a restraining order to freeze assets, appoint a receiver and preserve records. It also seeks restitution, and civil monetary penalties.
The companyâs bankruptcy petition, filed in federal court in Chicago Tuesday, was signed by Wasendorfâs son, Russell Wasendorf Jr. The younger Wasendorf is the companyâs president and chief operating officer. The filing noted Wasendorf Jr. was empowered to take the action pursuant to a power of attorney action due to his fatherâs incapacitation. The power of attorney action was dated July 3, according to the companyâs bankruptcy filing.
Officials said Wasendorf Sr. was taken to University of Iowa Hospitals and Clinics in Iowa City, and his condition wasnât available. Court records filed Tuesday stated he is believed to be in a coma as a result of the suicide attempt. A note left by Wasendorf prompted investigators to notify the FBI, which is conducting a preliminary inquiry.
The CFTC complaint, filed Tuesday in U.S. District Court for the Northern District of Illinois, alleges PFG and Wasendorf committed fraud by misappropriating customer funds, violated customer fund segregation laws and made false statements in financial statements filed with the commission.
The commission alleges PFG falsely represented that it held in excess of $220 million of customer funds during an NFA audit when in fact it held approximately $5.1 million. CFTC alleges PFG and Wasendorf failed to maintain adequate customer funds in segregated accounts as required by the Commodity Exchange Act and CFTC Regulations.
The alleged bogus numbers go back to February 2010 when the company claimed $207 million in its segregated customer funds account but really had less than $10 million. In March 2011, the complaint further alleges, defendants made false statements in filings required by the commission regarding funds held in segregation for customers trading on U.S. Exchanges.
In the aftermath of Wasendorfâs suicide attempt, the staff of the NFA received information that Wasendorf may have falsified certain bank records.
Signs of trouble surfaced months ago. In February, the company and its executives paid $700,000 to settle charges by the National Futures Association, the regulator that shut PFG down this week. The association alleged Peregrine had failed to supervise brokers who made deceptive sales pitches and sought big commissions at the expense of customers.
That helped convince Phil Flynn, at the time a broker with Peregrine, to leave the firm after five years.
âFor me, that was a big red flag to start looking for another firm,â Flynn, who now works with Price Futures Group in Chicago, told The Associated Press. âMy only regret is that I didnât act faster.â
Flynn said Wasendorf Sr. gave an awkward, rambling speech at the companyâs most recent Christmas party about his early business career and what it takes to become a success.
âIt was kind of a downbeat thing for a Christmas party, kind of out of place and weird,â he said.
Flynn said some firm employees referred to Wasendorfâs inner circle as âWasendorfians.â He said the chairman was often surrounded by underlings who treated him âlike he was the rock star of the firm, with great deference.â
Wasendorf built an $18 million headquarters for the company that included a daycare center, a Montessori School for employeesâ kids and free breakfast and lunch, Flynn said.
âIt was almost unbelievable,â he said of the facilityâs opulence.
Registered: Jan 2011
Posts: 1276
07-31-12 10:59 AM
I don't care much to prove anything here or anywhere else. My methodology is so simple monkey could follow it and make money.
......
About many 1000 operations with hit 66%
############################
For our full coverage of the financial fallout at Peregrine Financial Group, click here.
CEDAR FALLS, Iowa --- Peregrine Financial Group filed for bankruptcy Tuesday and the U.S. Commodity Futures Trading Commission filed a concurrent complaint against the company and its owner, Russell Ralph Wasendorf Sr., to freeze company assets.
The action came a day after Wasendorf, 64, allegedly attempted to take his own life and another regulatory arm, the National Futures Association, took action against the company.
The company filed for bankruptcy Tuesday under Chapter 7 of the U.S. Bankruptcy Code, usually the course companies take toward liquidation. But the CFTC action seeks a restraining order to freeze assets, appoint a receiver and preserve records. It also seeks restitution, and civil monetary penalties.
The companyâs bankruptcy petition, filed in federal court in Chicago Tuesday, was signed by Wasendorfâs son, Russell Wasendorf Jr. The younger Wasendorf is the companyâs president and chief operating officer. The filing noted Wasendorf Jr. was empowered to take the action pursuant to a power of attorney action due to his fatherâs incapacitation. The power of attorney action was dated July 3, according to the companyâs bankruptcy filing.
Officials said Wasendorf Sr. was taken to University of Iowa Hospitals and Clinics in Iowa City, and his condition wasnât available. Court records filed Tuesday stated he is believed to be in a coma as a result of the suicide attempt. A note left by Wasendorf prompted investigators to notify the FBI, which is conducting a preliminary inquiry.
The CFTC complaint, filed Tuesday in U.S. District Court for the Northern District of Illinois, alleges PFG and Wasendorf committed fraud by misappropriating customer funds, violated customer fund segregation laws and made false statements in financial statements filed with the commission.
The commission alleges PFG falsely represented that it held in excess of $220 million of customer funds during an NFA audit when in fact it held approximately $5.1 million. CFTC alleges PFG and Wasendorf failed to maintain adequate customer funds in segregated accounts as required by the Commodity Exchange Act and CFTC Regulations.
The alleged bogus numbers go back to February 2010 when the company claimed $207 million in its segregated customer funds account but really had less than $10 million. In March 2011, the complaint further alleges, defendants made false statements in filings required by the commission regarding funds held in segregation for customers trading on U.S. Exchanges.
In the aftermath of Wasendorfâs suicide attempt, the staff of the NFA received information that Wasendorf may have falsified certain bank records.
Signs of trouble surfaced months ago. In February, the company and its executives paid $700,000 to settle charges by the National Futures Association, the regulator that shut PFG down this week. The association alleged Peregrine had failed to supervise brokers who made deceptive sales pitches and sought big commissions at the expense of customers.
That helped convince Phil Flynn, at the time a broker with Peregrine, to leave the firm after five years.
âFor me, that was a big red flag to start looking for another firm,â Flynn, who now works with Price Futures Group in Chicago, told The Associated Press. âMy only regret is that I didnât act faster.â
Flynn said Wasendorf Sr. gave an awkward, rambling speech at the companyâs most recent Christmas party about his early business career and what it takes to become a success.
âIt was kind of a downbeat thing for a Christmas party, kind of out of place and weird,â he said.
Flynn said some firm employees referred to Wasendorfâs inner circle as âWasendorfians.â He said the chairman was often surrounded by underlings who treated him âlike he was the rock star of the firm, with great deference.â
Wasendorf built an $18 million headquarters for the company that included a daycare center, a Montessori School for employeesâ kids and free breakfast and lunch, Flynn said.
âIt was almost unbelievable,â he said of the facilityâs opulence.
