|FT, LLP Investigates Peregrine Financial Group, Inc. and PFGBest's Alleged $200 Million Shortfall|
July 11, 2012
On Monday, July 10 PFGBest customers' futures and foreign-exchange trading accounts were reportedly frozen due to suspected accounting irregularities at the brokerage.The next day, the Commodities Futures Trading Commission ("CFTC") sued both PFGBest and its chief executive, alleging PFGBest misappropriated client funds, leading to a shortfall in customer accounts. According to the CFTC, this shortfall exceeds $200 million.
The CFTC also alleged that in July 2012, PFGBest represented to the National Futures Association that it held in excess of $220 million in customer-segregated funds in an account, when that account only held approximately $5.1 million. PFGBest also allegedly failed to maintain adequate customer funds in segregated accounts since February 2012. Moreover, the Company's chief executive allegedly filed at least three statements with the CFTC falsely reporting the amount of funds in customer segregated accounts and may have falsified bank records.
These allegations, if true, may entitle PFGBest customers to legal remedies. Finkelstein Thompson has extensive familiarity with the federal commodities and securities laws, and is uniquely qualified to provide representation in connection with this matter.
Finkelstein Thompson LLP has spent over three decades delivering outstanding representation to institutional and individual clients in financial litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers.To learn more about Finkelstein Thompson LLP, please visit our web site at http://www.finkelsteinthompson.com/. Attorney advertising. Prior results do not guarantee similar outcomes.