• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

PFG Is Now MFG(lobal) Part 2 As $220 Million In Segregated Client Money Has Just Vaporized

Tyler Durden's picture




 

UPDATE 2: Have no fear though since as recently as January 2012, the CFTC did not find any "material breaches of customer funds protection requirements" at FCMs (firms like PFGBest)

UPDATE 1: Account-holders may not be so surprised to find who is the custodian for the PFGBest FX accounts: none other than huge MFGlobal fans, JPMorgan!

 

Remember when the entire segregated account fiasco was supposedly fixed in the aftermath of the November 2011 MF Global bankruptcy, and where regulators: the CFTC, the SEC, the CME, and anyone you asked, swore up and down this would never happen again? Turns out that 7 months later, the spirit of MFG has struck again, only this time with one letter switched: it is now known as PFG, as we suggested first 3 hours ago when we broke the story. From the just filed affidavit by Lauren Brinati who is working with the National Futures Association, which in turn has just filed notice prohibiting PFGBest from operating further, and freezing all of its accounts:

  • On or about June 29, 2012 PFG reported to NFA that it had approximately $400 million in segregated funds, of which more than $225 million were purportedly on deposit at U.S. Bank
  • On or about July 9, 2012, NFA received information indicating that PFG's Chairman may have falsified bank records
  • On July 9, 2012, NFA made inquiry with US Bank and learned that rather than the $225 million that PFG had reported as being on deposit at US Bank just days earlier, PFG had only approximately $5 million on deposit at U.S. Bank.

Translation: another $220 million segregated account pillage has just taken place, in the vein of none other than Jon Corzine and MF Global.

The money has now officially vaporized.

It is truly wonderful of the NFA to finally get involved, after PFG's clients have lost about 98% of their cash held with the firm.

In other potential news, a rather prominent New York bank, recently closely associated with marine wildlife, may have just cut its Q2 losses by up to $220 million.

And now for a moment of sarcasm, courtesy of Jack Pearson.

 

Full NFA filing:

 

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Mon, 07/09/2012 - 19:19 | 2600357 veyron
veyron's picture

.... And its gone!

Mon, 07/09/2012 - 19:25 | 2600384 FEDbuster
Mon, 07/09/2012 - 19:26 | 2600388 The Watchman
The Watchman's picture

Yeah!!!! Vaporized is back!!!! Yeah!!!!

 

Mon, 07/09/2012 - 19:30 | 2600411 gmrpeabody
gmrpeabody's picture

Paging Eric Holder.... paging Eric........ oh nevermind.

Mon, 07/09/2012 - 20:02 | 2600528 Freddie
Freddie's picture

Hope & Chains.  The never ending Obam looting.  All through Chicago.

Mon, 07/09/2012 - 20:11 | 2600559 Patriot Eke
Patriot Eke's picture

This is getting ridiculous.  Howie Mandel needs a new show called "Let's Bank and Steal."  Your money will be in one of the cases, and you have to guess which one before they are all empty.

Mon, 07/09/2012 - 20:43 | 2600650 sunaJ
sunaJ's picture

JFC, what is the point of any sort of enforcement bureaucracy at all, other than to give some porn-watching MFs a pension?  Burn it all down and let the people with pitchforks restore some semblance of risk/reward.

Mon, 07/09/2012 - 21:08 | 2600701 economics9698
economics9698's picture

Oh fuck.

Mon, 07/09/2012 - 21:13 | 2600710 fuu
fuu's picture

"Further, NFA learned that, in contrast to purported bank confirmations submitted to NFA that sought to confirm U.S. Bank account balances as of February 2010 and March 2011, that reported balances of approximately $207 million and $218 million, respectively, PFG's actual balances at U.S. Bank at those times was less than $10 million for each one of the months."

Mon, 07/09/2012 - 21:17 | 2600720 veyron
veyron's picture

JPM Earnings this week ... maybe we'll see a 200M+ boost courtesy of PFGBest ...

Mon, 07/09/2012 - 21:23 | 2600735 sullymandias
sullymandias's picture

they skipped OFG

Oh Fuck!! Global

Mon, 07/09/2012 - 21:27 | 2600754 veyron
veyron's picture

and NFG

Nitwit-fucker Global

Mon, 07/09/2012 - 21:31 | 2600766 A L I E N
A L I E N's picture

I'm glad my broker is safe... /sarc

Mon, 07/09/2012 - 21:51 | 2600810 Comay Mierda
Comay Mierda's picture

I said it before and I'll say it again

THERE IS NEVER JUST ONE COCKROACH

Tue, 07/10/2012 - 00:38 | 2601158 AldousHuxley
AldousHuxley's picture

february 2010, had < $10M when firm cliamed it has $207M

March 2011, had <$10< when firm claimed it had $218M

July 2012, had only $5M instead of $225M

 

 

WHAT TOOK THEM SO LONG?????? National Futures Association

Tue, 07/10/2012 - 00:47 | 2601169 AldousHuxley
AldousHuxley's picture

on another note....

SEC Freezes Assets of Georgia Investment Adviser Over Alleged $40 Million Scheme in an unregistered investment fund he managed, named PFG LLC.

 

 

http://online.wsj.com/article/BT-CO-20120702-710424.html

Tue, 07/10/2012 - 02:16 | 2601243 Oh regional Indian
Oh regional Indian's picture

Fair to say at this point that the unravelling has now begun in earnest. Big one here, little one there, some rate fixings, some client money de-segregation, some suicides, some suicide attempts, lots of brazen shame-less-ness....

It's over bar the shouting. 

Even the fat lady sang, but no one was listening...

ori

un-in-tended-con-sequences

 

Tue, 07/10/2012 - 08:21 | 2601583 BigJim
BigJim's picture

 MFG has struck again, only this time with one letter switched: it is now known as PFG

New trading strategy: short any trading company with a TLA ending in "FG"

Tue, 07/10/2012 - 10:04 | 2601886 Patriot Eke
Patriot Eke's picture

We need to break out the BFG's to solve this problem.

Wed, 07/11/2012 - 00:28 | 2604897 Pinto Currency
Pinto Currency's picture

 

Are the bullion banks seizing physical to make their own delivery?

Note it is proposed that their customers get 72% of VALUE not of the PHYSICAL METAL seized.

 

From http://www.washingtonsblog.com/2012/07/beware-allocated-gold-may-not-really-be-there.html

" The trustee overseeing the liquidation of the failed brokerage has proposed dumping all remaining customer assets - gold, silver, cash, options, futures and commodities—into a single pool that would pay customers only 72% of the value of their holdings. In other words, while traders already may have paid the full price for delivery of specific bars of gold or silver—and hold “warehouse receipts” to prove it—they’ll have to forfeit 28% of the value...

...At stake is an unspecified, but apparently large, volume of gold and silver bars slated for delivery to traders through accounts at MF Global, which filed for bankruptcy on Oct. 31. Adding insult to the injury: Of the 28% haircut, attorney and liquidation trustee James Giddens has frozen all asset classes, meaning that traders have sat helplessly as silver prices have dropped 31% since late August, and gold has fallen 16%. To boot, the traders are still being assessed fees for storage of the commodities…"

Tue, 07/10/2012 - 09:42 | 2601790 spine001
spine001's picture

Sorry, the unraveling has NOT began yet, this is just noise. If it starts it will be the beginning of the end. The whole 700 trillion economy is a gigantic PONZI scheme. If it unravels, forget about everything, from power generation to food distribution. The people the are preparing for the end of the world are "crazies" that are not completely crazy. We can only hope that they are wrong. And by the way, Steve Hawkins agrees with this... :) See his last conference in youtube, it'll open your eyes

Until next time,

Engineer

Mon, 07/09/2012 - 23:16 | 2601032 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

How much did Turd and his followers lose on this scam? The paper players can't resist getting fleeced.

Mon, 07/09/2012 - 23:34 | 2601061 tmosley
tmosley's picture

Turd has been encouraging people to get out of paper for a while.  He has said on multiple occassions that only the most experienced traders should still be in the market, and then only if they have some sort of an edge.

Tue, 07/10/2012 - 05:52 | 2601372 LasVegasDave
LasVegasDave's picture

how much is Turd making off that little referral arrangement?

and is it being properly disclosed?

Maybe one of the moderators can provide a Form ADV or other suitable disclosure doc since Turd seems too busy posting music videos on his site.

Mon, 07/09/2012 - 21:29 | 2600758 flacon
flacon's picture

13 minutes to refresh your mind with PHYSICAL SILVER: Silver! Final Warning!

http://www.youtube.com/watch?v=e68JdtAQ6Ew

 


Mon, 07/09/2012 - 21:57 | 2600828 cowdiddly
cowdiddly's picture

Their is over 9 million ounces still standing for delivery and they have been settling single digits a day this month on the comex. And just like last time customer accounts go poof and the silver simply vanishes from customer accounts. Don't worry you sorry a holes you are going to run out of customers and companies.

Mon, 07/09/2012 - 23:56 | 2601103 HoofHearted
HoofHearted's picture

And the prize goes to...cowdiddly...for figuring it out. Soooo-prize!!!!!

Tue, 07/10/2012 - 00:36 | 2601153 Michael
Michael's picture

How many millions stolen from millionaires does it take before some millionaire puts a hit out on these thieves?

Tue, 07/10/2012 - 00:52 | 2601175 AldousHuxley
AldousHuxley's picture

empires collapse within....

Tue, 07/10/2012 - 10:41 | 2602034 gabeh73
gabeh73's picture

So basically my Interactive Brokers account will get wiped out even if I have come up with a great trading algorithm?

 

This is discouraging

Tue, 07/10/2012 - 13:14 | 2602685 kginsberg
kginsberg's picture

If you have a Universal account with MF Global, all of your $$$'s that are not needed for actual futures margin are swept back into your securities account every day so that you are at least covered by SIPC insurance instead of having your futures funds in a seg account which is how MFG and now it seems PFG managed to steal our money.

Tue, 07/10/2012 - 13:14 | 2602686 kginsberg
kginsberg's picture

If you have a Universal account with MF Global, all of your $$$'s that are not needed for actual futures margin are swept back into your securities account every day so that you are at least covered by SIPC insurance instead of having your futures funds in a seg account which is how MFG and now it seems PFG managed to steal our money.

Tue, 07/10/2012 - 10:53 | 2602086 gabeh73
gabeh73's picture

So basically my Interactive Brokers account will get wiped out even if I have come up with a great trading algorithm?

 

This is discouraging

Mon, 07/09/2012 - 20:24 | 2600597 Son of Loki
Son of Loki's picture

Do you know where your money is tonight?

 

Obviously, many more of these funds will follow suit since zero, zilch, nothing has been done to the perps. Unless your $$ is worth a Giant Fund like Vanguard/Fidelity/The Reserve Fund...... my guess is you had better be nervous.

Tue, 07/10/2012 - 00:15 | 2601129 Harry Paratestes
Harry Paratestes's picture

Freddy,

Wake up the fuck.  Russel Wassendorf, Whole owner of Peregrine Futures is an "Old Died in the Wool Republican" from Iowa.  I've met him on numerous occations, oily is the best description I can give.  Had a poster sized picture of himself with, George Herbert Walker Bush, in his Conference Room.  Scum knows no political boundries, except the boundries of Washington, DC, witch seems to attract the biggest scum.

 

Tue, 07/10/2012 - 00:42 | 2601164 AldousHuxley
AldousHuxley's picture

interestingly he has trails of campaign donations to democrats in Chicago.....

 

Russell Wasendorf's Education University of Northern Iowa Film Making
Tue, 07/10/2012 - 13:06 | 2602636 kginsberg
kginsberg's picture

WHat exactly does his being from Iowa, or a Republican have to do with the  fact that he is probably a crook and stole customers money. Corzine was an "Old DIed In the Wool Democrat" from New jersey, does that make it ok for Corzine since his political beliefs were probably more in line with yours?

Scum come in both Donkey and Elephant clothes, and you trying to make it a left or right issue instead of a right or wrong issue simply shows that you would rather blame the republicans for all of the nations woes, than simply blame it on the fact that there are crooks amongst us.

 

Mon, 07/09/2012 - 20:15 | 2600567 Blammo
Blammo's picture

Seems being a Canadian does have advantages....When I tried to open an account with P F'n G Best they said a much higher commision structure would apply to me than advertised, since I'm a Canuck.

So I declined their offer.

Better to be lucky than to hope for an effective regulator,I guess.

Mon, 07/09/2012 - 21:48 | 2600805 Bobbyrib
Bobbyrib's picture

Sorry our politicians and regulators are whores. At least your money is not with these bums..

Tue, 07/10/2012 - 01:50 | 2601225 cranky-old-geezer
cranky-old-geezer's picture

 

 

Better to be lucky than to hope for an effective regulator,I guess.

After MFG, anyone keeping anything in a brokerage accout is a MORON.

And by the way, 401k is a brokerage account, IRA is a brokerage account.

Tue, 07/10/2012 - 13:12 | 2602661 kginsberg
kginsberg's picture

Dupe post.. sorry

Tue, 07/10/2012 - 13:10 | 2602662 kginsberg
kginsberg's picture

Actually  the problem with MFg was that our money was NOT in a brokerage account, it was in a futures account which was not subject to SIPC insurance. It is the futures acount that utilizes the supposedlt sacrosnct "segregation" methodology to protect customer funds which MFG and it seems PFG now dipped their scummy hands into. Had it been in a brokerage account, it would have been insured at least up to the SIPC limits.

 

ALso, a 401k or a IRA is NOT by definition in a brokerage account. You can have either or both in an FDIC insured bank, or a mutual fund, or any other of a myriad number of investment vehicles that have nothing to do with a brokerage account. 

Mon, 07/09/2012 - 22:01 | 2600838 HardlyZero
HardlyZero's picture

Where is CORZINE ?  (maybe $200M richer?...or maybe the money was sent to the Bahamas).

Mon, 07/09/2012 - 23:32 | 2601058 wee-weed up
wee-weed up's picture

Where is CORZINE ? Exactly! Answer: Not in jail! Thus it happens again. And will happen yet again, and again, and again...

Tue, 07/10/2012 - 04:08 | 2601325 natty light
natty light's picture

Inaction Jackson

Mon, 07/09/2012 - 19:30 | 2600414 Ray1968
Ray1968's picture

Still trying to get my money back from MuthaFuckinGlobal. Still have a distribution to go.

 

Where is the fucking handcuffs for Corzine???? Hang that bastard from a tree. No mercy.

Mon, 07/09/2012 - 19:42 | 2600457 Doña K
Doña K's picture

I'd better cash my IRA tomorrow. In my next year's tax return, I would take my own exclusion as fear of rehypothecation. I will ask the IRS to check with the SEC.

Tue, 07/10/2012 - 03:55 | 2601135 fockewulf190
fockewulf190's picture

The "Talk to Chuck" campaign, launched out of pure desperation by business starved Charles Schwab to somehow attract the remaining scraps of retail investors, has just been torpedoed, blown up, and sunk by PFG.

Tue, 07/10/2012 - 09:56 | 2601853 spine001
spine001's picture

HaHAHAHA. Your funnily right! It's true that if you take your money out of your IRA and you use it to buy a large field, seeds, agricultural machinery, weapons and establish a perimeter and that you protect 24/7, you may be alright in what is coming (assuming the nukes never actually fly). But if you keep it in cash or even precious metal, good luck. Think how would you actually protect it from vandals? Would you be able to eat it? or drink it? If you keep it in cash, make sure that it is in 1 dollar bills, so that at least you will be able to use it to heat yourself up in winter by burning it...

If the system breaks only those who prepared seriously for it will survive, like the crazies that bought refuges for the Mayan end of the world day... And even them will be challenged.

Keep your money in your 401K and your IRA, just move it to a safe institution, just see how they all fared in 2008 and choose the one that had the least headlines... Or go full blown and protect yourself seriously, there is NO room for middle ground if the system falls. Sad to say.

Until next time,

Engineer

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