The building housing the PFGBest headquarters (above) is seen in Chicago, July 11, 2012. Farmers on Tuesday fumed at the prospect of financial losses, or at a minimum a lengthy wait for the return of frozen funds, due to alleged mismanagement at brokerage PFGBest, and some said they had been burned for the last time. REUTERS/John Gress
By P.J. Huffstutter
CEDAR FALLS, Iowa
(Reuters) – Employees emptied their desks and a local charity collected food from the cafeteria of failed broker PFGBest’s Iowa offices on Wednesday, most still seeking answers to the expanding scandal that has shaken the industry.
Two days after the attempted suicide of founder and chairman Russell Wasendorf Sr, regulators are piecing together the alleged fraud that caused more than $200 million of the broker’s client funds to vanish — and the cover-up that hid the fact the money was missing for more than two years. Peregrine Financial Group, the firm’s regulated unit, filed for bankruptcy late on Tuesday.
The mystery deepened on Wednesday with news that Wasendorf, who had initially invited guests to a local wedding planned for next month, had actually married his fiancÃƒÆ’Ã‚Â©e Nancy Paladino in Las Vegas on June 30, according to a county filing… Read More