We’ve written in the past about the PFG scandal being great material for a blockbuster (particularly if profits go towards making clients whole), but as the saga continues to evolve, we have to wonder if the storyline may be a little too trite. Reuters reports:
Some of the more than $100 million Peregrine Financial’s former chief executive stole from his brokerage’s clients went to pay for his divorce settlement, the trustee of the now-bankrupt brokerage said in a lawsuit late Friday against the former wife.
The lawsuit demands the return of more than $2.9 million in divorce payments and the disallowance of the former wife’s bankruptcy court claims for an additional $2.4 million, money she says is still owed her from the divorce.
First off – no. Just no. Given that the divorce settlement was reached on the basis of Wasendorf’s described wealth – and that said wealth was the result of stealing from customers – we don’t really care about her claim, so here’s hoping the Trustee wins this one. Further, what is this, the second season of Suits? Stealing from a company and its clients to keep your lady friend in the manner to which she has become accustomed? Give us a break. That’s one of the most tired plot devices in existence.
All in all, this is playing out like a movie that’s about an hour longer than it should be. Here’s hoping the ending comes around sooner rather than later… and that it’s a happy one for battered investors.
+1 for the “Suits” reference. Thought I was the only one that watched that show.
What about the NFA fines that Wassendorf claimed he paid with embezzled money?
Will the NFA return those funds to PFG claimants ?
The NFA has returned $700,000 worth of PFG’s fines – we covered it at the time here: http://managed-futures-blog.attaincapital.com/2012/09/11/pfg-best-update-good-job-nfa/