Published: Tuesday July 10, 2012 MYT 8:20:00 AM
PFGBest customer bank account missing some US$220mil
New York: One of U.S. broker PFGBest's main customer bank accounts was found to be missing around $220 million in segregated funds earlier on Monday, the U.S. futures industry group said as it froze the broker's funds.
On June 29, PFGBest clearing unit Peregrine Financial Group (PFG) told the National Futures Association that it held $400 million in customer segregated funds, of which over $225 million was on deposit at an unnamed U.S. bank, according to a copy of the NFA's emergency enforcement action.
But on Monday, after receiving information that PFG's founder and owner may have falsified bank records, the NFA said that only $5 million was on account at the bank days earlier.
It also said that previous bank balances from February 2010 and March 2011, reported in excess of $200 million, may in fact have held less than $10 million at those times. - Reuters