In what should not be too much of a shocker to anybody, disgraced Peregrine Financial Services Inc.’s founder Russell Wasendorf Sr. claims to have spent most of the missing clients’ money. He blames the CFTC for being his “enemy” by fining his firm, and demanding higher capital levels. Hopefully clients can get some of their money back through the sale of PFG’s headquarters and through Wasendorf’s fraudulently acquired personal assets. If this scandal doesn’t result in some form of SIPC-like insurance for commodities investors than I would just assume the industry doesn’t care about fixing the problem. I truly hope that isn’t the case because I’m sure there are a lot of good people that do care but action must be taken here.
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