Tuesday, July 10, 2012

Suicide attempt prompts feds to stop futures trading

Washington – Federal regulators accused Iowa-based commodities broker PFG Best of misappropriating client funds today following a public suicide attempt by Russell Wassendorf, Sr., the firm's founder and chairman outside its Cedar Rapids headquarters.

The Commodities Futures Trading Commission suspended trading and filed a formal complaint alleging the broker commingled $200 million in segregated customer funds with operating capital, a similar violation to that of MF Global, which is unable to account for $1.6 billion.

The complaint echos a report by the National Futures Association issued on Monday, which reported that PFG's claim of holding $225 million in 1,845 customer accounts was false, that the company only held about $5 million in the segregated customer accounts.

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