The National Futures Association has said it will return a $700,000 fine against Peregrine Financial Group that was levied in February.
The refund comes amid bankruptcy liquidation proceedings for the failed firm. The NFA shut down PFG on July 9 as part of an emergency enforcement action when it became apparent that customer funds were not deposited as reported. Current estimates suggest that as much as $200 million of client funds is missing.
Court-appointed bankruptcy trustee Ira Bodenstein now will have access to the additional $700,000 fine to distribute to PFG's former clients.
The February fine was for alleged lax supervision and was not directly related to the missing customer funds that bankrupt the company this summer.