Iowa commodities broker may have lost $200 million
The Commodities Futures Trading Commission (CFTC) has accused a Cedar Falls-based broker of losing more than $200 million, one day after the founder and chairman was found in his car unconscious from an apparent suicide attempt.
Yesterday, the National Futures Association said during an audit it found that Peregrine Financial Group Inc. (PFG) claimed to have $225 million in a bank account, but actually had about $5 million, according to Reuters.
Russell R. Wasendorf Sr., the founder and chaiman of PFG, was known as a industry veteran of 40 years, according to Reuters. He was named in the CFTC complaint.
Some analysts worry that what happened at PFG would be a repeat of the MF Global scandal, but on a smaller scale, according to Reuters.
PFG is thought to have been inflating its account balances since Febraury 2010, which has brought new questions about industry regulation. Read more.
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