PFGBest revelations shock industry

Rosenthal Collins Group also attempted to provide reassurance and included a chart detailing how it invested customer funds and a link to its 2011 audited financial statements.

Finally, the Futures Industry Association (FIA) issued a statement saying, “The futures industry is outraged at what appears to be an extensive fraud carried out on futures customers of this firm and is appalled that customers may be victims of this deceit. Any violations of the law should be vigorously pursued and prosecuted.” It went on in the statement to reiterate recommendations it had made to reform the industry.

The Commodity Customer Coalition (CCC), the ad hoc organization founded by James Koutoulas and John Roe to represent former MF Global customers say they are "working closely with senior NFA officials" and will continue to report information on PFG as it becomes disclosable.

CCC held a public conference call on the PFG situation on Wednesday evening. Koutoulas said that the fact that PFG assets have been frozen and the firm is in a Chapter 7 liquidation instead of Chapter 11 reorganization is a positive for customers. He also noted that the bankruptcy filing indicates that PFG has considerably more assets than liabilities, which is a positve for customers, though he added, "It is too early to tell [what assets are available to customers]."

Attorney Greg Collette who has been working with the CCC on MF Global stated that he would be filing a class action suit against PFG. Details can be found through the CCC website.  

In other PFG news Bloomberg is reporting that U.S. District Judge Rebecca Pallmeyer appointed Michael M. Eidelman of Chicago’s Vedder Price PC as receiver, placing him in charge of the business. Bloomberg is also reporting that distressed debt traders are putting a very low price on PFG customer cliams. According to Bloomberg CRT Capital Group LLC is valuing those claims between 22¢ and 25¢ on the dollar.

<< Page 2 of 2
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome