On July 9, 2012, National Futures Association took an emergency enforcement action against Peregrine Financial Group, Inc. (PFG), an NFA Member futures commission merchant (FCM) and Forex Dealer Member (FDM) and Peregrine Asset Management, Inc. (PAM), an NFA Member commodity trading advisor (CTA) and commodity pool operator (CPO) which is closely affiliated with PFG.
NFA took this action because NFA believes that PFG failed to maintain adequate funds in segregated accounts. The shortfall exceeds $200 million. In addition, PFG has filed false reports and has falsified bank records.
It is NFA’s understanding that almost all open customer positions at PFG have since been liquidated and that PFG will be generating accurate account statements as soon as possible.
On July 10, 2012, the Commodity Futures Trading Commission (CFTC) filed an injunctive action in Chicago, and as a result, the court has appointed a receiver in the case.
In addition, PFG has filed for liquidation in a U. S. bankruptcy court in Chicago. A bankruptcy trustee will be appointed in this case as well.
When it becomes clear whether the receiver or the trustee will have primary responsibility for liquidating PFG’s assets, NFA will provide additional information via email and on the NFA website.
Online access about the CFTC action and the bankruptcy case are available through the PACER system. You can enroll for the PACER service at http://www.pacer.gov/register.html.
If you are a customer of PFG and have additional questions, please contact Toni Rossetti (312-781-1422, firstname.lastname@example.org), Matthew Pendell (312-781-1318, email@example.com) or Lauren Brinati (312-781-1215, firstname.lastname@example.org).