Peregrine Financial Group: Misappropriating Customer Funds

Author :

Dr Viola Makin, Amanda Bowen, Chijioke Oji

Pages :

16

Product Type :

Case

Reference # :

WBS-2013-13

Teaching Note :

not available

Institute:

Wits Business School, University of the Witwatersrand

Setting:

USA

Year:

2013

Keywords:

Finance, Banking, Ethics

Summary/Abstract:

In early July 2012, the United States Commodity Futures Trading Commission (CFTC) filed a federal lawsuit against Peregrine Financial Group Inc. (PFG), a futures trading firm, and its founder Russell Wasendorf. The CFTC accused PFG and Wasendorf of fraud, violating customer funds amounting to US$215 million and submitting false financial reports to the National Futures Association (NFA), which operated under the CFTC’s supervision. PFG faced liquidation and Wasendorf, if found guilty, faced a fine or a jail sentence.