CFTC Faults Peregrine Trustee’s Distribution Plan
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The Peregrine Financial Group Inc. trustee should delay distribution of $123 million to customers of the defunct futures brokerage until after testing customer accounts, the U.S. Commodity Futures Trading Commission said.
The tests are essential because Peregrine collapsed amid a fraud and theft of money by its founder, Russell Wasendorf Sr., the CFTC said yesterday in a filing in U.S. Bankruptcy Court in Chicago. The regulator asked the judge not to approve the payout until all the accounts of intended recipients are validated.