Peregrine Financial Group: Misappropriating Customer Funds
Dr Viola Makin, Amanda Bowen, Chijioke Oji
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Wits Business School, University of the Witwatersrand
Finance, Banking, Ethics
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.