PFG Best - Do People Realize How Huge This Is In Light Of MF Global?Submitted by kevink on Thu, 07/12/2012 - 19:52
"For Investors and Customers, PFG is MF Global all Over Again... "
MF Global stole over $1 billion in segregated accounts about 9 months ago. Now we now have PFG Best stealing $200+ million in segregated accounts. Apparently after MF Global, regulators investigated PFG Best and gave them the thumbs up to continue doing business.
Also, there's talk that the money has been stolen for around 2 years now. At the very least, it shows how unbelievably incompetent the regulators are. However, it seems pretty hard to dismiss the possibility that the regulators were in on this scandal. PFG Best sent in financial statements but the regulators apparently didn't even verify the numbers with the banks holding the money. And
JP Morgan Chase was apparently involved on this one as well by the way as the segregated accounts were held there (at least for one of the customers interviewed in the YouTube video). That customer's money is frozen right now and they're taking losses.
Read some of what Ann Barnhardt wrote today:
You Couldn't Write This as Fiction
Posted by Ann Barnhardt - July 12, AD 2012 11:01 AM MST
So, just when you thought that the NFA's criminal failure in auditing oversight and due diligence couldn't get any worse, we find out that PFG's accountant/auditor was some gal doing business out of her house in a lower-middle class residential neighborhood on the west side of Chicago.
Here is the Chicago Tribune story.
Behold the global headquarters of Veraja-Snelling Company, which is just some gal named Jeannie Veraja-Snelling working out of her house in Glendale Heights, Illinois.
I wonder if she was also babysitting and running an Ebay business out of there, too? You know, while she was doing and auditing the books of a nine-figure FCM with hundreds of employees and offices in Shanghai.
Again, the NFA is obviously criminally complicit in consciously allowing PFG to get away with crap like this. Not only did they accept a clearly suspect external auditor's report, but they also failed to perform even the most rudimentary tasks when they, the NFA, performed their own audits of PFG. When you have this level of fraudulent neglience on TWO FRONTS, it is impossible to argue that this was just an "oopsie."
Remember yesterday how we talked about the fact that the NFA was mailing bank account balance confirms to an unverified, aka "blind" PO Box? Did you know that you literally cannot transact business on Ebay using a blind PO Box? That's right. If you go on Ebay and buy some piece of crap from someone for $0.99, that transaction may not be completed using a blind PO Box. That is how criminally negligent the NFA is. Their standards don't even satisfy those required for buying crap on Ebay - and we are all supposed to believe that they are "auditing" multi-billion-dollar firms whose owners sit on the board of the NFA itself? Wink, wink. Nudge, nudge. Give me a break.
The management of the NFA needs to be arrested, tried under the RICO statutes and then sent to prison for DECADES so they can ponder what it is that they have done. "
PFG Best apparently also hired affirmative action workers as regulators so they could pin the blame on them.
Also, some MF Global customers had their accounts transferred to PFG Best. So for those customers, they've now had their segregated funds stolen from them twice IN 9 MONTHS!
The cracks in the financial system are really showing at this point. How long until people lose faith is anyone's guess but it's hard to imagine that the number isn't growing very quickly.