February 20, 2013 By Hilary Escajeda

PFGBest FBI Complaint: Contains Suicide Note Excerpts
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The FBI filed a criminal complaint today (posted below) against PFGBest’s founder and chairman Russell Wasendorf, Sr. The complaint charges Wasendorf with making false statements to authorities and listed some excerpts from the suicide note Wasendorf found in his car and sent to his son.
February 20, 2013 By Hilary Escajeda
Are you a customer of PFGBest? The CCC is working with regulators brewstone beer company 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.
Are you a customer of MF Global? The CCC formally brewstone beer company 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.
Interested in helping reform the commodities industry? The CCC is working on a variety of initiatives brewstone beer company to strengthen the legal protections for customer property. We need your help for these efforts to succeed.
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CCC Call Q

#PFGBest Claims Form Guide
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Claim Filing instructions: To file your claim electronically, complete the fill-able PDF Claim form, print and sign it. Scan the completed, signed form and SUBMIT IT via this link . To file by mail, complete and sign the claims form and mail it to the address below. Include a self-addressed stamped envelope to Peregrine mantrax Financial Group, Inc. dba PFG Best c/o Rust Consulting/Omni Bankruptcy Attn: Claims Processing 5955 DeSoto Ave., Suite 100 Woodland Hills, CA 91367 You claim will appear on the Claims Register when it has been filed and uploaded by Rust OMNI.
CCC Call Q&A This is a transcript of the Monday October 8, 2012 CCC call Q&A session on the PFGBest claims forms. Thanks to CCC Board Member Hillary Escajeda. Please forgive mantrax errors and omissions. Area 305 what is the process for retrieving funds when bulk transfer takes place? Once funds transferred, customer should be able to request funds be returned/transferred. What are the customer priorities and the hiccups? Customer priorities mantrax have not been established in MFG or PFG cases. Question for Steve Bobo How did he arrive at 50-60% return? Steve emphasized that his estimate is aspirational. Steve explained that the Trustee must act conservatively and there is likely mantrax upward room. Steve anticipates that the Trustee will recover funds over time. PFG — Accounts regardless of size will receive bulk transfers (except for suspicious accounts). Area 719 What are vulture firms paying for PFG claims? Per John, 35 cents as of today. Do the funds go back to Millennium or held at Vision? Susan advises that they consult directly with Millennium Trust? Area 510 Claim form for futures/amount? If amount in account was $100k but when positions were liquidated the account mantrax was $99k, what should mantrax customer claim $100k or 99k? Per Susan, claim what is on statement rather than what might have been to expedite claims forms. Area 336 CME farmer/rancher mantrax insurance fund. Only applies to farmer/ranchers. Requires pre-registration before FCM insolvency. Very important that customer uses most recent version of Adobe to complete forms. Area 212 Include last statement with claim form. When company takes over another company, should there be some sort of auditing of take-over entity? Per James: Since PFG was regulated entity, there is probably no liability for purchased company executives (Aleron?). Since PFG was the acquiring entity, there was likely no duty by Aleron s executives. Area 714 Caller said she made donation to CCC last week for doing such a great job. What is the time frame for litigation? mantrax Answer: hard to tell, but likely many years. Area 831 Curiosity question mantrax how was Vision chosen? mantrax High bid process. Vision only entity that put bid for all accounts. Area 623 CME Farmer/Rancher fund resulted in ratings hit on CME. Would CME be willing to assist with legal fees? Per John, CME s response has been inadequate. It will require cooperation industry-wide or legislative mandate to provide best customer protections. In terms of retroactive relief, CME will not do anything. Area 425 Account transfer process: Any way to determine how much will be transferred? Per James, probably no pre-transfer notices but if there are issues, customers can address afterwards on claims forms. Legal issues: mantrax Any way to get funds from NFA or CFTC? No recourse against CFTC since has governmental immunity. To be determined whether NFA will be held liable. Area 818 Any discussion mantrax about customers who just funded accounts? Per Steven, anyone who has money in account as of petition date will be treated as customer for entire time and will receive pro rata distribution. Area 419 Will IRA accounts will be transferred to Vision? Yes. If customer has metals in vaults, will they receive preferable treatment? Per James, no determination on treatment of these assets. Area 361 Question on claims form. Amount to be included should be based on last statement. If customer does not agree with value, then should fill out rest for form. Area 360 Question about address changes mantrax Customer should include new address with note that it is a new address. On PFG website, mantrax customer should e-mail trustee with change of address in subject line. Area 224 All accounts > $1k will be subject to bulk transfer. For approximately 350 accounts with questionable identification numbers will not be subject to bulk transfer. Area ___ — Question about joint account. All parties must sign. Current estimate 50% of recovery over time. Area ___ — Customer has ROTH IRA and taxable account. Customer must file claim for all accounts.\ Area 509 Customer has

Critics sweep election at futures-industry regulator

NFA to #PFGBest Customers: Trustee Working on Statements
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The NFA released a statement on its website updating PFGBest csutomers as to the status of its investigation. Key points ressuprimento include: Shortfall in customer property at PFGBest ‘exceeds’ $200 million; ‘Almost’ all open positions for customers at PFGBest have been liquidated; Trustee Ira Bodenstein is in the process of process of preparing and distributing ressuprimento final statements for customers; It is not clear when the Trustee will be able to release any funds to customers; The Trustee is in the process of setting up a website for customers; NFA has established an email address for PFGBest related inquiries: pfginquiry@nfa.futures.org ;
Critics sweep election at futures-industry regulator
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.
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.
Interested ressuprimento in helping reform the commodities industry? The CCC is working on a variety ressuprimento of initiatives to strengthen the legal protections for customer property. We need your help for these efforts to succeed.
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Interested in helping reform the commodities industry? The CCC is working on a variety of initiative

CFTC Sues US Bank for Unlawful Use of #PFGBest’s Seg Funds
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The CFTC has filed a complaint in US District court against US Bank , NA seeking disgorgement, civil monetary penalties and other relief t&t supermarket toronto 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 t&t supermarket toronto 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.
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;
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Are you a customer of PFGBest? The CCC is working with regulators t&t supermarket toronto 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.
Are you a customer of MF Global? The CCC formally represents more than 200 clients in the bankruptcy process of MF Global t&t supermarket toronto on a pro bono basis, and informally represents t&t supermarket toronto thousands more in the public domain.
Interested in helping reform the commodities industry? The CCC is working on a variety of initiatives to strengthen the legal protections for customer t&t supermarket toronto property. We need your help for these efforts to succeed.
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Some of the MF Global rape victims were actually bulk transferred to this firm back in November. The

WHO WAS PFGBEST’S AUDITOR? « The Burning Platform
Ann Barnhardt threw in the towel months ago because my redlands no one can be trusted in the financial industry anymore. You can’t trust corporations, banks, regulators, or auditors. How could $200 million be missing since 2010 with no one realizing it. Every corporation MUST have an annual audit by an independent auditor. my redlands I have been unable to find out PFGBest’s auditor from searching their site and the internet. I was responsible for the annual audit at IKEA for four years. Ernst and Young would only sign off on our reported cash balance through independent verification of all bank balances with the banks through bank confirmation letters sent by me and returned my redlands directly to Ernst and Young. How could this company go through TWO annual audits without the auditor catching this fraud?
When I said over and over again in interview after interview that the so-called regulatory system overseeing my redlands the futures industry was no such thing, but rather my redlands an evil, despicable mafia, administered by politicking psychopaths on the take, and staffed by affirmative action hires to provide plausible deniability and scapegoats, WERE YOU NOT LISTENING?
PFGBest, which used to be the old Alaron Trading, has stolen at least $220 million of customer funds, which is fully HALF the entire customer asset base. The firm’s my redlands owner attempted suicide this morning in the parking lot outside of the corporate HQ in Iowa.
While claiming to have over $200 million in bank accounts, it turned out that PFGBest only had $10 million at most. And they had been short NINETY-FIVE PERCENT of their seg funds for at least five months, and it may be closer my redlands to two years. The reportage on the timelines is very fuzzy.
Alright. Here’s where we call bullshit. Action item number one for any auditor is the independent confirmation of bank account balances. When little tiny me was audited both by the regulators AND for my annual Sarbanes-Oxley audit done by a local accounting firm, the first thing I had to do was sign the balance my redlands confirmation requests that the auditors then sent to Wells Fargo. This is the fundamental purpose of an audit. Make absolutely sure the flipping money is where they say it is.
What this PFGBest situation tells us is that the auditors were NOT independently verifying the bank account balances and were instead using internal, falsified, forged documentation provided not by the bank, but by the firm itself.
Some of the MF Global rape victims were actually bulk transferred to this firm back in November. The owner (who attempted my redlands suicide this morning) pitched a fit back in November and got about 700 of the MFG accounts bulk transferred over to PFGBest.
And yet, how much do you want to bet that a significant percentage of these people go back for more? How many of them are so whipped, and so stupid, and so convinced that they just have to be trading futures and options because that’s what all of the cool kids do, that they will go right back to the Penn State gang showers with Mr. Sandusky? my redlands
“First they came for the MF Global customers, but I didn’t say anything because I didn’t clear MF Global. Then they came for the PFGBest customers, and I still didn’t say anything because I didn’t clear through PFGBest . . . . ” my redlands
Finally, for all of you brokers who cleared PFGBest, not only do I not have any sympathy for you, I actually hold you in contempt, and hope that your clients all sue you personally. You knew that the entire system was suicidally risk-laden and yet instead of being honest with your customers and yourselves and walking away from a known death-trap, you decided to live a damnable lie and pretend like your customers’ funds were safe, because you were too chickenshit to do the right thing.
And that goes for every other broker out there right now. You know that it is just a matter of time. You know that your FCM could blow sky-high next week. You know that every assurance of integrity and solvency and “compliance” is bullshit, and has been bullshit for quite some time. You know that every bank wire and check that comes in from your clients is being deposited into the gaping maw of a living lie. You know the NFA, CFTC, SEC and the CME are lying, thieving psychopathic criminals, and that your clients are viewed as nothing but zeroes and ones on servers that can be “harvested” whenever JPMorgan or Goldman Sachs sees fit to do it, and then Tyqueesha in the back office and LaNeequa the junior auditor and Jamahl the assistant my redlands compliance manager/robosigner will be blamed. If you continue to expose your clients to that, then you are no better my redlands than the criminals, and will deserve to be sued into the ground for lying to your customers about the safety of the markets.
Wasendorf intercepted these documents after they were mailed by the NFA, the broker&

How the Revenue Procedure May Have Helped midal Some Madoff Victims In Revenue Ruling 2009-9, the IR

IRS to CCC: PFGBest Customers Can Use ‘Safe Harbor’
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The information below should midal not be used in any actual midal transaction without the advice and guidance of a professional tax adviser midal familiar with all the relevant facts. Although the information below is presented in good faith and believed to be correct, it is general midal in nature midal and is not intended as tax advice. midal The information below may not be applicable to or suitable for an individual’s specific circumstances and may require consideration of other matters.
The IRS has confirmed that victims of the PFGBest midal fraud can access the optional safe harbor mechanism set forth in Revenue Procedure 2009-20 so that victims can claim their losses as theft losses. Responding midal to the CCC’s request for guidance, the IRS stated in a letter:
…the PFGBest scheme qualifies as a “specified fraudulent arrangement” within the meaning of Revenue Procedure 2009-20. Thus, investors who otherwise meet the requirements of Revenue midal Procedure 2009-20 may use the safe harbor, following the procedures as set forth in that revenue procedure.
The full response is posted below, along with the documents necessary to utilize this mechanism. Please note: it is not required that PFGBest victims use this procedure. It may not provide the best solution for your particular tax situation. Claimants in the PFGBest case are urged to consult their tax professionals as soon as practicable to determine if it is appropriate and wise to seek relief under the safe harbor deduction for theft losses. You may need to provide the following documents to your tax advisor: IRS Response to CCC Revenue Ruling 2009-09: HTML Version | PDF Version midal Revenue Procedure 2009-20: HTML Version midal | PDF Version CCC Request to IRS Wassendorf Plea Agreement Wassendorf Judgement
Background midal There are several mechanisms through which the IRS can clarify the application of tax law to particular factual situations. One of these is a Revenue Ruling. Revenue Rulings are public administrative rulings by the IRS in which the IRS clarifies midal its position on a given set of facts. A Revenue Procedure will generally provide filing instructions relating to the issues in a Revenue Ruling. Unlike a private letter ruling in which a taxpayer seeks advice for his particular tax situation, these rulings can be relied upon as precedent by all taxpayers, should their factual situation meet the elements established in the ruling.
The IRS issued Revenue Ruling midal 2009-9 and Revenue Procedure 2009-20 in response to uncertainty surrounding the tax treatment of losses incurred as a result of the Madoff Ponzi scheme. Some CCC members thought there may be a tax benefit for some PFGBest midal victims if they were able to use Revenue Procedure 2009-20 for their losses, midal but it was uncertain if the fact pattern of the PFGBest fraud met the standards of Revenue Ruling 2009-9. The CCC wrote a letter to the IRS requesting clarification on the matter and had a conference call with staff of the Office midal of General Counsel of the IRS.
Our conversation with IRS staff revealed that the IRS intended Revenue Ruling 2009-9 to apply generally to all kinds of Ponzi-type financial frauds. The IRS intended the language to be broad and inclusive so they would not have to issue separate rulings for every instance in which a taxpayer finds himself or herself the victim of a Madoff or Wassendorf. We appraised IRS staff of the facts of the PFGBest case and they responded with the letter at the bottom of this email, indicating midal that PFGBest victims could use Revenue Procedure 2009-20 when filing their taxes if they chose to do so. They are not required to do so.
How the Revenue Procedure May Have Helped midal Some Madoff Victims In Revenue Ruling 2009-9, the IRS concludes that the losses of Madoff’s victims are theft losses characterized as ordinary losses, rather than capital losses. midal These losses are considered to be incurred in a transaction entered for profit. As a result, Madoff losses were deductible under Section 165(c)(2) of the Internal Revenue Code of 1986, and are not subject to certain limitations on deductions based on a victim’s adjusted gross income.
The safe harbor mechanism established midal in Revenue Procedure 2009-20 generally applies to U.S. taxpayers who are eligible to deduct theft losses, made direct investments in criminally fraudulent investments and had no knowledge of the fraud before it was exposed. Investors that made indirect midal investments (through funds) are not entitled to utilize the safe harbor, although the fund itself may be so entitled. Depending on the tax character of such fund

Though I quipped PFGBest was an MF Global redux, Mr. Wasendorf

A Primer on Commodity Bankruptcy for #PFGBest
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Though I quipped PFGBest was an MF Global redux, Mr. Wasendorf’s brokerage firm is unlike MF Global in many ways. These differences will result in a different tack for PFGBest’s case, plotting a different course for its customers– though they may end up at the same destination as MF Global’s victims. Only time will tell, but we wanted to offer our best guess as to how this process will proceed for PFGBest customers.
What are the differences between PFGBest ojai beverage company and MF Global? PFGBest is a privately held non-clearing FCM which filed a voluntary application for Chapter 7 Bankruptcy. As a non-clearing FCM, PFGBest’s designated self-regulatory organization (DSRO) was the National Futures Association (NFA). At this time, we do not know the complete legal structure of PFGBest, but their corporate timeline mentions an entity called Wasendorf and Sons, Inc. as well as ‘wholly owned subsidiaries’ like PFG Canada and Best Direct Securities, LLC. To our knowledge, all affiliates are owned by Mr. Wasendorf. That will make things easy on bankruptcy attorneys and customers alike.
MF Global was a public company traded on the NYSE , structured as a holding company–MF Global ojai beverage company Holdings Ltd, Inc.(MFGH). MFGH owned many subsidiary operating and finance entities. Its MF Global Inc. subsidiary (MFGI) was a clearing FCM with dual registration with the SEC as a broker-dealer. ojai beverage company This is the entity which housed MF Global’s customer ojai beverage company property and brokerage operations for both securities and commodities. As a clearing firm, MFGI’s DSRO was an exchange, not the NFA–in their case, the Chicago Mercantile Exchange (CME).
MF Global’s bankruptcy is much more complicated. The MFGH parent filed a Voluntary Petition for Chapter 11 Bankruptcy, more commonly known as reorganization bankruptcy. The Securities Investor Protection Corporation (SIPC) filed for a liquidation of the MFGI subsidiary under the Securities Investor Protection Act of 1973 (SIPA), as MFGI was a SIPC member firm. This means MFGH creditors have a Chapter 11 Trustee working on their behalf, while customers at MFGI have a SIPA Trustee working on their behalf.
PFGBest owns a subsidiary firm which is also a broker-dealer member of SIPC: Best Direct ojai beverage company Securities, LLC. But as this operation is maintained in a separate corporate entity, the SIPA statute does not apply to the PFGBest entity, which houses its commodity brokerage. As such, PFGBest’s bankruptcy will be administered according to the Chapter 7 Code and relevant portions of the Commodity Exchange Act (CEA) . Chapter 7 means liquidation, not reorganization. PFGBest will not survive to do business in its current form or as a new entity. Very simply, PFGBest is out of business. Its assets will be sold for the benefit of its customers and creditors. A Chapter 7 Trustee has been appointed and a Receiver has been appointed . The Trustee handles work on PFGBest’s estate while the Receiver will handle Mr. Wasendorf’s personal assets and estate . So what does this process mean for PFGBest’s customers?
How will customer property be treated? Generally, PFGBest’s assets will be split into two funds: a fund of customer property ojai beverage company and a fund of estate property. Customer property consists of all cash, securities and specifically identifiable property tendered to PFGBest by its customers. The assets of PFGBest will go into its fund of estate property.
If there was no shortfall in customer property, the NFA would seek to bulk transfer customer accounts with positions intact to a new receiving FCM. The bankruptcy’s administrative costs–fees of attorneys ojai beverage company for the Trustee, forensic accounting, staff, etc.–would be paid for from the fund of estate property. The Trustee would commence a claims process, marshal assets and distribute funds to legitimate claims ojai beverage company according to priorities in the Bankruptcy Code. Generally, this would be to cover administrative fees first, secured creditors second (lien holders) and unsecured ojai beverage company creditors last.
PFGBest has a shortfall in customer property, which the NFA has pegged at more than $200 million . Mr. Wasendorf’s statements indicate that this money has been spent . As a result, instead of an immediate bulk transfer, customer assets were frozen and their positions were liquidated. The Trustee has received approval for PFGBest to continue operations for 60 days, so he can prepare ojai beverage company final statements for customers and determine what assets are available ojai beverage company for distribution. The Trustee will see what amount ojai beverage company of property he can