CFTC Sues US Bank for Unlawful Use of #PFGBest’s Seg Funds

#PFGBest Customers

Are you a customer of PFGBest? The CCC is working with regulators and monitoring the court on behalf of PFG customers. At this stage, we are advising customers to gather their statements and prepare for a claims or account transfer process.

Stay tuned to our website for more information.

The CFTC has filed a complaint in US District court against US Bank, NA seeking disgorgement, civil monetary penalties and other relief connected to the unlawful use of PFGBest's customer segregated funds.  The CFTC alleges that US Bank:

  • Knowingly facilitated transfers out of PFGBest's customer segregated account which were not for the benefit of customers;
  • Accepted PFGBest's customer segregated funds as security on loans made to Wassendorf, his wife and construction company;
  • Treated the PFGBest's customer segregated account as the company's commercial checking account.

PFGBest customers will be heartened to know that, among other things, CFTC is seeking the following:

An order requiring that Defendant, as well as any of Defendant’s successors, make full restitution to each and every Peregrine customer whose funds Defendant improperly held in the 1845 Account, pursuant to such procedure as the Court may order, plus pre-judgment interest thereon from the date of such violations, plus post-judgment interest;

READ THE FULL COMPLAINT BELOW

Download (PDF, 73KB)

 

#MFGlobal Customers

Are you a customer of MF Global? The CCC formally represents more than 200 clients in the bankruptcy process of MF Global on a pro bono basis, and informally represents thousands more in the public domain.

Get the latest news on #MFGlboal.

About John Roe 91 Articles
Co-Founder of the CCC and head of BTR Trading and Roe Capital Management.

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