PFGBest Update: Claim Deadline Today

Today’s it, folks – the deadline for former PFGBest clients, vendors and so forth to file their claim in the bankruptcy. It has to be in by 5 PM today to be given consideration in the PFGBest bankruptcy case. For those who haven’t filed yet, that might be nerve wracking, but for those who have been languishing and waiting for another distribution, this date (already delayed a month, and we’d argue, far longer than it should have been) could not have come soon enough.

The surprising thing – our conversations with the trustee have indicate that only around half (a little over 50%) of eligible customers have actually filed their claims.  

Half? Seriously? What are people waiting for?

The likely answer is that half the number of clients represented some small percent of the amount of money held by clients (1%, 5%, 10%?).  What’s more, the half that have put in their claims are claiming over 100% of the money. From the data we have, the breakdown looks like this:

Amounts Claimed against PFG:

 UNSECURED  $72,215,240.32
 PRIORITY  $12,909,548.37
 SECURED  $8,493,287.46
 ADMIN  $80,379.10
 INTEREST  $26,272.13
 FUT  $413,612,539.36
 FRX  $144,377,012.87
 PPM  $2,927,331.38
 PMD  $1,724,713.20
 Total  $656,366,324.20

There are elements in this equation that are worthy of consideration. For starters, we’re not really going to complain about people not filing claims. If fewer claims are filed, that means there’s more of the pie to get distributed to our clients. On the flip side, you’ll notice that there are $414mm in futures accounts claims. If you’re scratching your head over this figure, given the amount owed to customers is just $400 mm in TOTAL, and given that only half of the eligible claims have been filed… join the club. Looking through the claims, one thing is clear: there are a TON of duplicate claims. This means the trustee has a lot of sorting to do in the coming weeks to ensure the proper amounts are being claimed and nobody gets access to more money than they are supposed to receive.

There are a few other claims that we’re hoping get dismissed outright. Russ Wasendorf Sr.’s ex-wife, for instance, is filing a claim for $2.4mm. Are you kidding us? You lived off of the stolen money from clients for 20 years of marriage. JPMorgan Chase is filing for $2.1mm. Seriously, guys? It’s a drop in the bucket, and heaven knows you guys could use some good PR – why not waive your claim in light of the fraud that was taking place (especially given that your bank was one of those used by Wasendorf in this mess). And the biggest claim of all, $48 million, is from the receiver for the Minnesota forex scam run through PFG for a lawsuit that was in its early stages. Should they really be claiming an amount which has yet to be ruled on by a judge or jury?

Wishful thinking? Maybe. These things aren’t up to us, but here’s hoping the futures customers get the treatment they deserve once the deadline passes.

One comment

  1. here is another reason, why some retail customers are not getting their trading funds being returned to them.

    attached is one of the several email going back and forth between a former pfg customer and vision financial brokerage.

    read for yourself and see, if vision is the kind of brokerage for you, ok?

    AND THE ATTACHMENT IS PROBABLY THE 8TH EMAIL ASKING FOR A PROMPT WIRE TRANSFER WHICH FAILS ON DELAY TACTICS. IT IS REALLY DISTURBING HOW THIS TYPE OF COMPANY COULD BE ALLOWED TO EXIST.

    should a trader, any trader at all, put any amount of confidence and/or cash with such brokerage….?
    ——————-

    hi r….

    per your last correspondence which stated that i did not sign the W forms.

    perhaps, you ought to know that on electronic form, it is not possible to affix a signature, except by typing and filling in one’s name–instead of signing.

    furthermore, unless the form itself allows spaces for typing in or filling in one’s name, there is no way to arbitrarily insert the name.

    if you would observe, i did type in my name after the date appearing on the lower right hand corner which is the only space
    that i could insert my name.

    as this is my last working day for this week, i surely hope that you could help to expedite the wiring of my funds to my bank as previously provided.

    most financial institutions require that the wire transfer request be completed before 11 a.m., and this is what i am trying to do now for several days.

    perhaps you also ought to be aware that there have been a dozen of email going back and forth between your vision company and myself.

    thousands of internet and active traders would see our correspondence, some of which really is just dragging your feet sort of attitudinal problems and
    in my opinion is really just delaying tactics.

    i sincerely hope you or someone else who is able to help me out, do so today by returning my trading funds by wire transfer before 11 a.m. today.

    AND IF THERE IS ANYTHING ELSE THAT IS NEEDED, PLSE DO LET ME KNOW RIGHT AWAY, SO THE WIRE COULD GO OUT FROM YOUR ACCOUNTING DEPT BEFORE 11 A.M. TODAY, THURSDAY, DECEMBER 13, 2012.

    thx much for all your assistance.
    ———————-

    as of to date, saturday, december 15, there is not even a customary electronic reply that my email has been received. formerly, there was also a routine email stating that my email has been received and someone would get in touch with me. well…. we’ll see…. how much longer vision can drag this on and out …. L O L

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The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.