Former Analyst Says Founder's "Grandiose" Vision Led to Problems at PFGBest
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Former PFGBest analyst Phil Flynn told Fox Business Netwrok that PFG's founder Russell Wasendorf was a man with a "grandiose vision", "a little strange" and "stand-offish". Despite fraud charges against Wasendorf and PFG and an alleged $220 million in missing client funds, Flynn refused to call the veteran futures trader a crook.
PFG is currently being investigated by the FBI and charges are pending with the CFTC. Earlier in the year, PFG was fined $700k by the NFA, and they were also accused of running a forex ponzi scheme.
On Monday, Wasendorf allegedly attempted to commit suicide in the wake of the allegations. Flynn, who left PFG when the company was fined by the NFA, said Russ Wasendorf Sr. "had this grandiose vision of what PFG should be" and that the reason for the company’s trouble may involve "this desire to fulfill this vision of his."
Wasendorf's vision included a compound, a daycare center, and a montessori school in PFG offices in Iowa. The original allegations against PFG alleged commingling of client funds to meet a margin call on a separate account. Recent PFG reports claimed $220 million in assets. Actually assets are estimated closer to $5.1 million.
Traders say liquidation of PFG positions at brokerages is causing volatility in commodities today.
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PFG is currently being investigated by the FBI and charges are pending with the CFTC. Earlier in the year, PFG was fined $700k by the NFA, and they were also accused of running a forex ponzi scheme.
On Monday, Wasendorf allegedly attempted to commit suicide in the wake of the allegations. Flynn, who left PFG when the company was fined by the NFA, said Russ Wasendorf Sr. "had this grandiose vision of what PFG should be" and that the reason for the company’s trouble may involve "this desire to fulfill this vision of his."
Wasendorf's vision included a compound, a daycare center, and a montessori school in PFG offices in Iowa. The original allegations against PFG alleged commingling of client funds to meet a margin call on a separate account. Recent PFG reports claimed $220 million in assets. Actually assets are estimated closer to $5.1 million.
Traders say liquidation of PFG positions at brokerages is causing volatility in commodities today.
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