MONDAY, JULY 9, 2012
Another blow to what credibility is left in the futures brokerage business in the US may have come in the form of the failure of midsized commodities and foreign exchange broker PFGBest, which claimed to have roughly $400 million in customer assets. Although details are sketchy, the firm was may have been falsifying bank records; the founder of the firm tried but failed to kill himself.
Customer accounts were put on hold today and the firm is being liquidated. Per the Wall Street Journal (hat tip Deontos):
“What this means is no customers are able to trade except to liquidate positions. Until further notice, PFGBest is not authorized to release any funds,” said PFGBest in its statement…
The NFA said it has taken “Member Responsibility Action to protect customers because PFG has failed to demonstrate that it meets capital requirements and segregated funds requirements.” The group also said it “has reason to believe” the firm doesn’t have enough assets to meet obligations to customers.