The disgraceful fall of PFG continues to fully evolve as CEO Russell Wassendorf signed a statement linking his suicide attempt to a fraud that he perpetrating stretching back twenty years. Where was the CFTC or NFA in regulating this monstrosity, and why would anyone trust commodity futures without some form of SIPC insurance moving forward? I’d be curious to see how PFG’s performance was for clients as if it is anything like many other chop shop firms where 90% of clients lose money, you really have to question what value this “fine institution” ever provided. The CFTC needs to wake up and realize that the commodities industry has a lot in common with mortgages in the middle part of the last decade, in that incentives aren’t based on doing what is right for the client, but instead is on generating robust commissions, and the sales pitches are usually far too aggressive, inclusive of a variety of half truths and innuendo.
http://www.bloomberg.com/news/2012-07-13/wasendorf-fraud-at-peregrine-lasted-20-years-u-s-says.html