PGF Files Chapter 7

Tyler Durden's picture


The natural and sad end to every fraud: liquidation (and even sadder for the10-25K creditors of the company who will get nothing as a result of this liquidation proceedings).

Peregrine Financial Group Inc, the regulated unit of the brokerage PFGBest, has filed to liquidate under Chapter 7 of the U.S. bankruptcy code, a court filing shows.


Tuesday's filing with the U.S. bankruptcy court shows that Peregrine has between $500 million and $1 billion of assets, between $100 million and $500 million of liabilities, and between 10,000 and 25,000 creditors.


A board resolution authorizing the bankruptcy was signed by President Russell Wasendorf Jr, who also signed on behalf of Chairman Russell Wasendorf Sr.


The resolution said Russell Wasendorf Jr was empowered to act for Russell Wasendorf Sr in the event the latter became incapacitated, under a power of attorney dated July 3.


Russell Wasendorf Sr attempted suicide on July 9.

And via Bloomberg, this is how he tried to kill himself:

Thompson said in a phone interview today that Wasendorf was found in his car with a note, the contents of which the sheriff declined to divulge. A hose ran from the vehicle’s exhaust pipe into the passenger compartment, he said.


An officer with the sheriff’s office arrived just after 8 a.m. yesterday at Peregrine offices, where paramedics were attending to Wasendorf, according to an incident report e-mailed to Bloomberg News.


Wasendorf was breathing as he was taken from his car and was incoherent, according to the report. He was later airlifted to University of  Iowa Hospitals in Iowa City, it said.


“A note was found in the vehicle that indicated possible discrepancies with accounts at Peregrine Financial Group,” according to the report.

There is now a receiver:

Pallmeyer’s order today prohibited the destruction of the firm’s books and records and granted the CFTC’s request for access to inspect them. She also appointed a receiver, Michael M. Eidelman of Chicago’s Vedder Price PC, placing him in charge of the business.


“Until further order of the court,” she said, “the  receiver’s compensation is limited to $25,000 to be satisfied first out of available assets of  defendant Russell R. Wasendorf Sr. and then from available assets of defendant Peregrine Financial Group Inc.”

Many more to come.


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Tue, 07/10/2012 - 21:03 | 2604245 Trimmed Hedge
Trimmed Hedge's picture

But can we still open a new acct wiff them..??

Tue, 07/10/2012 - 21:09 | 2604273 Pladizow
Pladizow's picture

Will they file as MFG did to put the interests of the creditors ahead of the clients?

Chances 100%?

Tue, 07/10/2012 - 21:18 | 2604304 nmewn
nmewn's picture

Its a run off...debt wins.

Tue, 07/10/2012 - 21:24 | 2604332 veyron
veyron's picture

Its PFG not PGF

Tue, 07/10/2012 - 21:42 | 2604348 FEDbuster
FEDbuster's picture

Does it really matter?  It's a BFD, and their clients are wondering WTF?

Tue, 07/10/2012 - 21:43 | 2604383 I think I need ...
I think I need to buy a gun's picture

well if they take all my money eventually, all these motherfuckers in front of me in the food chain better be at -0- as well and that includes all of congress to buffett and gates.......

Tue, 07/10/2012 - 23:03 | 2604549 TruthInSunshine
TruthInSunshine's picture



My Fellow Citizens,

I  send my deepest condolences to all who have been and who will be adversely affected by this unfortunate event.

I will not rest until the truth of how & why this disaster transpired is uncovered, until all innocent parties who have suffered losses are recompensed fully, and I hereby personally pledge to do everything within my power to bring the wicked miscreants that were responsible for this criminal travesty to a swift justice.

Our system of finance, economics and justice, which all rely on trust in institutions, can not survive unless those who perpetrate fraud on this scale, obviously fueled by a seemingly unquenchable avarice and greed, are appropriately punished for their reprehensible deeds.




The Hon. Jon S. Corzine


Former United States Senator (D-NJ), Former Governor of New Jersey, Former CEO of Goldman Sachs, Former CEO of MF Global (a former Primary Dealer), and prominent Obama Bundler

Wed, 07/11/2012 - 01:48 | 2605039 The Big Ching-aso
The Big Ching-aso's picture



Well ain't this a bitch.

Wed, 07/11/2012 - 02:00 | 2605050 OutLookingIn
OutLookingIn's picture

Hopefully ~ soon to be prisoner Corzine

Tue, 07/10/2012 - 21:43 | 2604384 I think I need ...
I think I need to buy a gun's picture

well if they take all my money eventually, all these motherfuckers in front of me in the food chain better be at -0- as well and that includes all of congress to buffett and gates.......

Tue, 07/10/2012 - 21:58 | 2604441 The Gooch
The Gooch's picture

It's PDF. As in "pre(meditated)death-fail" or "Pretty damn Fucked". or... now- "Pretty Damn Frequent". As in the frequency of dominoes falling.

It's like the end scene of "Fight Club" but only one little "few-hundred million" office-at-a-time and they're doing it to themseleves. No white vans necessary. (yet)

Slow motion.

Bass, how low can you go?

Death Row. 

Tue, 07/10/2012 - 22:17 | 2604494 palmereldritch
palmereldritch's picture

What a brother knows.

Tue, 07/10/2012 - 23:51 | 2604803 Marty Rothbard
Marty Rothbard's picture

Perhaps is is PGF, as in their clients are getting a Pretty Good Fucking.

Tue, 07/10/2012 - 21:07 | 2604247 yabyum
yabyum's picture

WHERE DID THE MONEY GO!!  Were these not segregated funds? If so where are the police? Where is the perp walk. Go into the ICU if needed and serve the fucker.

Tue, 07/10/2012 - 21:10 | 2604272 El Oregonian
El Oregonian's picture

It has been DIMON-ATED...

Tue, 07/10/2012 - 21:31 | 2604352 Rasna
Rasna's picture

I heard that Martha Stewart closed her account with them on July 1 and had them wire transfer the funds to her bank in the Caymans. \sarc

Tue, 07/10/2012 - 21:43 | 2604381 Rasna
Rasna's picture

And btw,  

Eric Holder is fuckin fed up with all of this fraud and bullshit market manipulation.

He will personally lead the DoJ/FBI task force to get to the bottom of all this... He will appoint Jon Corzine and Jamie Dimon as co-chairs.  They will leave no stone unturned in their pursuit of justice, especially those that they heap on the investing public and the US taxpayer...

Martha is toast!

Tue, 07/10/2012 - 22:23 | 2604515 The Gooch
The Gooch's picture

All of your Martha Stewart toasters are belong to us.

Tue, 07/10/2012 - 21:05 | 2604249 Tsar Pointless
Tsar Pointless's picture

Greatest Country in the World!TM

Tue, 07/10/2012 - 21:39 | 2604367 TrustWho
TrustWho's picture

I have always wanted to ask Obama.....

How can the largest debtor country in the history of the world also be the richest country in the world?

Tue, 07/10/2012 - 21:47 | 2604403 King_of_simpletons
King_of_simpletons's picture

It's all in the mind of the beholder.

Tue, 07/10/2012 - 22:00 | 2604446 The Gooch
The Gooch's picture

debt IS money. What are ya new?


Tue, 07/10/2012 - 22:08 | 2604469 nmewn
nmewn's picture

Just eat your peas ;-)

Tue, 07/10/2012 - 22:20 | 2604507 jcpicks
jcpicks's picture

Check the balance sheet....

Debt = Assets

Tue, 07/10/2012 - 21:55 | 2604429 smlbizman
smlbizman's picture

i was one of those creditors once for a lil mom and pop outfit called conseco.....ill make it short and sweet....they owed 30k+...and i was hustled to get invoices in.....just fix whatever needs fixin and get that bill in....on dec. 23rd i received a call from a girl that we had a 15yr. relationship from conseco....and she said..sorry we aint payin.....weeks later i recieve a cert. ive been around a little and i figured 10% back would be the final wife calls from post office all excited saying we are getting 12k.....i said great...{knowing something nots right}...i get home and read a little deeper and what was said was...look asshole we could demand the recent 60k we sent you but we are going to be nice and just tell you to send us 12k more and will forget the 30k we owe i am located in maryland and all i had to do to fight this was go to illinois hire a strange lawyer spend a few more thousand and than get fucked to the point i would have had to walk back to maryland.....this went on for 3 not the kind that gets nervous...i tend to get even...i roughly went thru the entities that allowed this type of abuse of a blue collar type i started balancing my morality  to match theirs....a few weeks after their intent not to pay was transmittied, i received payment for an invoice that was posted after their banc. posting...learned they had to pay all future while the mid atlantic area told them fuck you....i called and kept working for the quaility and pricing may have changed but the payments came in ..and then 3yrs later i get a call from a different conseco attrny.....ended up paying me 10% on the dollar.......these assholes that "praise these corporate bancruptcies from  some wonderful stand alone ceo who has the courage to fuck every person that provided parts and labor ........ah never mind....just dont feel bad for changing your life style to one of getting even instead of ..."we can fuck you..but all you can do is take it...thats the law....

Tue, 07/10/2012 - 22:56 | 2604629 Major Miner
Major Miner's picture

I know it's hard, but you shouldn't hold a grudge.  Ever since that baseball and steroids mess, he just hasn't been the same.  

Wed, 07/11/2012 - 07:15 | 2605275 smlbizman
smlbizman's picture

and it wasnt jose, it was hose b

Tue, 07/10/2012 - 21:05 | 2604251 SHEEPFUKKER

You can't be a very good swindler if you also have a failed suicide attempt.  

Tue, 07/10/2012 - 21:11 | 2604283 Itch
Itch's picture

I heard he tried to hang himself with toilet roll.

Tue, 07/10/2012 - 21:18 | 2604306 fuu
fuu's picture

Tube from the exhaust to the interior in the corporate HQ parking lot.

Tue, 07/10/2012 - 21:24 | 2604328 nmewn
nmewn's picture

The guys even a failure at the most basic thing...breathing.

Tue, 07/10/2012 - 21:48 | 2604397 LetThemEatRand
LetThemEatRand's picture

Did anyone else notice that his son is the President of the now bankrupt company?  What is it with these corrupt guys that they just pass the keys on to their children?  Oh yeah.  Kings, Queens, Princes, etc.   Fuck bootstraps.   The United States has become the land of the silver spoon.

Tue, 07/10/2012 - 22:30 | 2604535 smiler03
smiler03's picture

He's been President for a long time. The company was created in 1980 as "Wasendorf & Son, Inc". He must surely be complicit?

Tue, 07/10/2012 - 22:35 | 2604551 LetThemEatRand
LetThemEatRand's picture

Good catch.  Whether he was complicit depends on whether he was just hanging out water skiing in local lakes while dad funded his trust, or actually running the business with the old man.  I'm guessing from the quick action on the POA that he was involved.

Tue, 07/10/2012 - 22:01 | 2604449 The Gooch
The Gooch's picture

toilet seat.

Tue, 07/10/2012 - 22:24 | 2604517 palmereldritch
palmereldritch's picture

He couldn't help it. He was running on fumes.

Tue, 07/10/2012 - 22:58 | 2604636 saulysw
saulysw's picture

Golf clap.

Tue, 07/10/2012 - 21:08 | 2604255 Harvey Lee Oswald
Harvey Lee Oswald's picture

Why would he attempt suicide?

Must have been paying attention during Jon Corzine's sentencing... oh wait

Tue, 07/10/2012 - 21:21 | 2604322 Dr. Engali
Dr. Engali's picture

Because he doesn't have Corzine's connections. This guy will be nailed like Maddoff while the big whales continue their plunder.

Wed, 07/11/2012 - 02:23 | 2605074 hedgehog9999
hedgehog9999's picture

I am just amazed and baffled that the big whales still roam this planet having fucked so many people. Surely some justice will eventually take place , this world has a natural tendency to even things out somehow..... reversion to the mean they say those technicians in the trading world.

Wed, 07/11/2012 - 10:38 | 2605933 StychoKiller
StychoKiller's picture

Dharma:  Who is truly happy?  What is the greatest wonder?  What is the path?  And what is the news?

Yudhishthira:  He who has no debts is truly happy.  Day after day countless people die.  Yet the living wish to live forever.  O Lord, what can be a greater wonder?  Argument leads to no certain conclusion, the Srutis are different from one another; there is not even one Rishi whose opinion can be accepted by all; the truth about Dharma and duty is hid in caves of our heart: therefore, that alone is the path along which the great have trod.  This world full of ignorance is like a pan.  The sun is fire, the days and nights are fuel.  The months and the seasons constitute the wooden ladle.  Time is the cook that is cooking all creatures in that pan (with such aids); this is the news.

Tue, 07/10/2012 - 21:38 | 2604365 Id fight Gandhi
Id fight Gandhi's picture

Didn't work on mad men either.

Tue, 07/10/2012 - 21:08 | 2604268 Comay Mierda
Comay Mierda's picture

when the tide goes out you will see who was swimming naked.

if bernank doesnt send in a tsunami of QE we are gonna see a lot more of this shit

its pretty sad when the two choices we have are (a) watch your money vaporize into the fiat blackhole, or (b) watch your money become worth less than a flaming bag of shit


Tue, 07/10/2012 - 21:11 | 2604277 HungrySeagull
HungrySeagull's picture

I wonder what will yeild a better BTU over longest?

A pallet of Dollar Bills or a barrel of fuel additive burning shit.

Tue, 07/10/2012 - 21:17 | 2604301 Ineverslice
Ineverslice's picture

What are all those fish  doing floppin' around in the harbor?

Wed, 07/11/2012 - 01:56 | 2605048 Lord Koos
Lord Koos's picture

The third choice is to stack...

Tue, 07/10/2012 - 21:11 | 2604274 HungrySeagull
HungrySeagull's picture


No hard copies allowed.

From now on all documents will be electronic.

This is the death of Paper as a industry.

The poor schmuck who tried to keep ahead of the tsunami must now have nightmares of paper and the US Mail.

Tue, 07/10/2012 - 21:10 | 2604276 zorba THE GREEK
zorba THE GREEK's picture

Tip of the iceberg. 

Tue, 07/10/2012 - 21:47 | 2604401 earleflorida
earleflorida's picture

better hurry cause this iceberg is melting fast,...

Tue, 07/10/2012 - 21:11 | 2604281 mammoth mo
mammoth mo's picture


You know if we only had a group that was supposed to monitor fraud...........

And stop it.....

rather than these things only going belly up on their own.

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