Peregrine Financial Group customers will receive their first payout — totaling roughly $123 million — after a federal bankruptcy judge Thursday approved a distribution plan from trustee Ira Bodenstein.
The first wave of funds will go to customers with accounts totaling less $50,000, and will be distributed on or before Oct. 8. A second distribution to be made on or before Oct. 29 will include customers with account balances of more than $50,000, provided that the trustee’s office is able to determine the validity to those accounts.
According to the ruling from U.S. District Judge Carol Doyle, who approved the motion from the bench, the distributions will satisfy approximately 30% of 4d and delivery customers’ account balances and roughly 40% of 30.7 customers’ account balances.
Bodenstein filed his motion to distribute on Sept. 5, but the Commodity Future Trading Commission (CFTC) promptly filed a motion objecting to his plan and asking the court to delay authorization of the proposal. According to the agency, Bodenstein had failed to undertake recommended tests to ensure the validity of customer accounts.
“[The CFTC] believes that the innocent customers of the Debtor should be compensated for their losses as soon as reasonable and practicable,” the CFTC complaint read. “Nonetheless, caution is warranted to ensure that the books and records of the Debtor may be relied upon to avoid the possibility of distributions based on fictitious data.” Judge Doyle made no mention of these objections in her latest ruling.