PFG freezes accounts, CEO attempts suicide

MasterGambler · Jul 20, 2012

Does anyone in here know if OptionsHouse is insured? Stock options accounts have the same 250k securities insurance as normal equities accounts, correct?

Swan Noir · Jul 20, 2012

It is a securities account and the SIPC protection (although not quite what you describe) is identical.

Quote from MasterGambler:

Does anyone in here know if OptionsHouse is insured? Stock options accounts have the same 250k securities insurance as normal equities accounts, correct?

atticus · Jul 20, 2012

achilles28 · Jul 21, 2012

How was PFG able to post margin requirements when half it's customer deposits were gone?

ssss · Jul 21, 2012

1. Author have won PFG competition Marketzar ( with paper account)
in 2007
-some 2000 $ ( first attempt 1 - place ,second -2 place)

Price Money was received only with assistance Court of IOWA
-------------------------------------------------------------------------

2 .Some time before (1 year) author tryed to play in PFG competition
with paper account ,but in 3 Place was rejected some time before contest ended ...

Without any ground ..

Have had suspect ,that not all is okay by PFG long time before

Multiple time's sended message's to CTFC ,but as my money was not involved ,stopped this kind of activities

StarDust9182 · Jul 21, 2012

Quote from achilles28:

How was PFG able to post margin requirements when half it's customer deposits were gone?

Photoshop?

Chicago_CTA · Jul 21, 2012

Quote from achilles28:

How was PFG able to post margin requirements when half it's customer deposits were gone?

I wondered this myself! With only $6mm in the bank and a few thousand accounts, I do not understand how they met margin requirements....

Maybe somebody could weigh in........

Is it possible their initial margin requirements to support client positions was actually LESS than $6mm ???

cdcaveman · Jul 21, 2012

Bucketed the trades maybe?

comintel · Jul 21, 2012

Quote from achilles28:

How was PFG able to post margin requirements when half it's customer deposits were gone?

Half of it customer deposits *in excess of* margin funds posted with Jefferies are gone.

The margin deposits with its Clearing Broker, Jefferies, are all present and accounted for.

Chicago_CTA · Jul 21, 2012

Quote from comintel:

Half of it customer deposits *in excess of* margin funds posted with Jefferies are gone.

The margin deposits with its Clearing Broker, Jefferies, are all present and accounted for.

Good info. That makes sense because PFG had listed about $400mm of Cust Seg Funds in the most recent CFTC report (on website "View Financial Data for FCMs"), but in this fraud case it was a bank account of $200mm that was being discussed.

Thanks for the reply post.