PFG victims give trustee “F” in communication

Attain Capital Management’s Director of Communications Lauren Nelson notes in an e-mail that they are far from happy with the Chapter 7 liquidation process. “Nothing about the accounting process, extent of missing funds, or timetable for distribution has been clear,” Nelson says. “What has been clear is that the trustee is sharply unaware of how significant these funds are to those hanging in the balance.”

Attain raises assets for CTAs, including Bouchard, and was a large customer of PFG. Nelson adds, “We have offered our services in the vetting of accounts and paperwork. We have begged the NFA to send over additional staff to help crunch the numbers. In spite of this, no assistance has been taken. The process continues to lumber onward with no end in sight. Our hope is that the trustee finally realizes why time is of the essence here- and soon."

Robert Fishman, partner with Shaw Gussis Fishman Glantz Wolfson & Towbin LLC, attorneys for the Chapter 7 trustee, notes in an e-mail that the trustee is “acutely aware of how important a return of the customer funds to the appropriate customers is to each of those customers.”

However, he pointed out that there are approximately 24,000 PFG customers and the situation was created by an alleged massive fraud. “The Trustee believes that the worst thing he could do is rush to make distributions before he is certain that he is basing those distributions on reliable, confirmable information,” Fishman notes, adding, “The Trustee is not going to publish status reports about what he is discovering until he is sure he has it right,… When the Trustee is sure he has accurate information, he will quickly act upon it." 

Bouchard, one of Futures Hot New CTAs for 2011, was down 2.3% in 2012 through June after producing solid returns since launching in September 2010.

Benson also expressed concern over the cost of the liquidation process noting that the MF Global Inc. trustee billed $17 million in the first four months after the firm filed Bankruptcy on Oct. 31, 2011. He reiterated that his main concern is for customers to receive some clarification and education on the process so that they can move forward and not rely on rumors.

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