PFG - What happens if you have accounts with them??

Quote from luckyluciano:

What are SIP property owners?
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Those are the folks who put up gold bars, T-bills or something like a work of art for margin instead of cash like the rest of us regular folks for trading.

Those people have to share in the same persentage haircut that the rest of the account holders are going to take when all this settles out.

The trustee will determine what his assets are versus the account shortage, lets say that he thinks he can recover 65% for the commodity account clients then the SIP customers will have to put up 35% to get their work of art back or else he can liquidate. Seee how that works?

Remember that it'll be a low ball figure at first, trustee has to be careful of not overshooting the initial dollar amount that he can return.

Much in the same fashion of MFG Global, the trustee started at 60% then made additional distrubutions to get us up to 80% but that has taken 8 or 9 months so far.

We should know the initial low ball figure in less than two weeks if everything goes smooth.
 
For clarity.

The trustee cannot give the 11 SIP customers the total value of their property back, that wouldn't be fair on the rest of us with cash accounts for commodity trading. It all has to all be even in as far as the haircut will be so someone with an exotic work of art would have to pay in to get his art work back, whatever that persentage is.

See how that works now? No worries, it was confusing for me going through this with MFG, believe me, it was quite an education to say the least. Happy to help out.
 
The CCC has contact information up on their site for all members of the senate agriculture committee prior to the hearing today. Anyone involved with MFG and PFG best is asked to write call or tweet their representatives, lets let them know how we feel about our loss of funds.

Here's the CCC link with contact information.

http://customercoalition.org/

I'm going to post a new thread on this too.
 
Quote from luckyluciano:

What type of response will they give us? Will it be a percentage response??
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Both are excellent questions and I would like to see that answered in the senate hearings but my feeling is that the trustees may only be in a position to give approximate answers.
 
Received this in the mail today:

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Yes, that's posted on the calendar on the trustees site, just go to pfgbest.com and it'll re-direct you to trustees site, click on August 9 and you'll see it.

For the most up to date news on PFG, the commodity customer coalition or www.pfgchapter7.com are the best sources to monitor.
 
Yeah, this just doesn't fill me with confidence. Had someone been wearing a toupee with brains in it, PFG would have been busted long ago.

http://www.businessweek.com/articles/2012-08-01/the-peregrine-fraud-case-is-worse-than-you-thought

on May 13, 2011, a Friday, an NFA auditor was copied on an e-mail that a U.S. Bank employee, assistant relationship manager Hope Timmerman, sent to Peregrine’s chief compliance officer, Susan O’Meara. The e-mail included an attached pdf document from U.S. Bank showing that Peregrine’s customer account contained just $7.18 million, well short of what it should have had.

Three days later, on a Monday, the NFA received a two-page fax over e-mail with a cover page that read: “Re: Corrected Bank Balance Confirmation,” Roth wrote. The cover page appeared to be printed on U.S. Bank letterhead and included Hope Timmerman’s name at the bottom. The second page of the fax included a hand-written account balance that now read $218.6 million. The NFA auditors apparently took that as a legitimate correction and never followed up on how U.S. Bank made such an egregious error. On top of that, the incident happened just as the NFA “was in the middle of conducting on-site audit fieldwork of PFG,” Roth wrote to Harkin.
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