August 13, 2012
Attain Capital
Like
Since the PFGBest scandal broke, investors have been calling for heads on a platter. They have wanted Wasendorf Sr. arrested (done), the NFA disbanded/sued/held liable (not yet), and pray for US Bank and their deep pockets to have some liability so they pay out investors (fingers crossed). Underneath all of that, however, has been the question of just how much others at PFGBest (and especially Wasendorf’s son – Russ Wasendorf Jr.) knew about the fraud.
Well, we may have a chance to find out. Via the Chicago Tribune:
An Iowa grand jury is expected to hear testimony from Peregrine Financial Group’s president [Jr.] next week as it begins considering alleged wrongdoing at the failed futures brokerage. […] Wasendorf Jr., through his lawyer, has denied that he knew about wrongdoing at the company. Other top Peregrine executives, including the chief financial officer, also are expected to testify before the grand jury in Iowa, where the brokerage had its headquarters, lawyers have said.
Now, Wasendorf Jr. has steadfastly claimed he had no knowledge of the fraud, and his testimony, alongside the testimony of other executives, is not meant to be indicative of suspected guilt – just a part of prosecuting Wasendorf Sr. Indeed, Wasendorf Sr. has claimed from the start that he alone knew of the fraud. But as more and more details come out, we may have reason to pay close attention to the testimony and evidence in this trial. In fact, we’ve talked with more than a few PFGBest former employees who have serious doubts about the elder Wasendorf’s ability to operate a computer to the level needed to carry out the fraud. If what the NFA said about the deluge of forged documents is correct, it’s not that big of a leap to assume Wasendorf Sr. probably had help along the way.
However, Wasendorf Jr., in particular, has a bright light shining on him now. He was, after all, in charge of operations, and, by all accounts, the one actually running the firm the last few years; so the idea that he had no clue that nearly half of customer funds had been funneled away from the firm strikes most as ludicris. Add to this transfers of lucrative property from Wasendorf Sr. to Jr. back and last week’s report that Wasendorf Jr. was actually planning on leaving the firm… well, we wouldn’t be surprised to hear a lot of 5th amendment invocations during the testimony.
Of course, the prosecutors had Wasendorf Sr. handed to them on a silver platter via the confession in his suicide note – building the case against him wasn’t exactly a tough job. What comes next – ascertaining guilt outside of Wasendorf Sr. – could be a horse of a different color.
Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, 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.
The programs listed here are a sub-set of the full list of programs able to be accessed by subscribing to the database and reflect programs we currently work with and/or are more familiar with.
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. Individuals cannot invest in the index itself, and actual rates of return may be significantly different and more volatile than those of the index.
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.
Limitations on RCM Quintile + Star Rankings
The Quintile Rankings and RCM Star Rankings shown here are provided for informational purposes only. RCM does not guarantee the accuracy, timeliness or completeness of this information. The ranking methodology is proprietary and the results have not been audited or verified by an independent third party. Some CTAs may employ trading programs or strategies that are riskier than others. CTAs may manage customer accounts differently than their model results shown or make different trades in actual customer accounts versus their own accounts. Different CTAs are subject to different market conditions and risks that can significantly impact actual results. RCM and its affiliates receive compensation from some of the rated CTAs. Investors should perform their own due diligence before investing with any CTA. This ranking information should not be the sole basis for any investment decision.
See the full terms of use and risk disclaimer here.
August 13, 2012
From the day the story broke, I was quite certain that the son played an integral role in the fraud. But then I read this excerpt from the WSJ article that you referenced:
“Mr. Iavarone has said Mr. Wasendorf Jr. was surprised by the revelation of his father’s apparent scheme and had no knowledge of it.”
Well, I guess that settles it. He’s must be in the clear.
It’s worth noting that Bernie Madoff insisted he was the only one responsible for that fraud and only now, four years later, is his scum bag brother Peter Madoff admitting guilt and going to prison. Who knows how long it’ll take for justice to be served to Wasendorf Jr.
August 13, 2012
1. how much cash remains with Jeffries and JP Morgan?
2. what is the current “burn rate” for the trustee, his lawyers and anybody else “investigating” this case?
3. all available customer money should be returned to the customers now, today!!!!
4. WE ARE NOT CREDITORS, IT’S OUR MONEY
August 13, 2012
Thank you for keeping us up to date, otherwise I would feel lost. Many thumbs up for attaincapital!
August 14, 2012
thanks , your posts are very helpful