PFGBest One Year Later: Where’s my Money?

For those who had accounts at PFG – the overriding questions beyond what happened, what has changed, and all the politics and drama surrounding those items – is when am I going to get more of my money back, and how much of my money will I be getting back?

We provided our estimates of possible recovery amounts given varying circumstances either going for or against customers here (PFGBest Update: Recovery Scenarios/Percentages), and covered what exciting news the CFTC Suing US Bank was for the possibility of recovery is beyond that (the full missing amount of $200 million is only about 1% of US Bank’s annual revenue).  But there remains a lot of confusion on what the time-frames are for all of this. To tackle that, we talked with the PFG Bankruptcy trustee Ira Bodenstein recently and have summarized the conversation below:

1. The main delay in processing further customer distributions at this point is the verification of all of the claims which have been submitted. There were over 3 times the number of claims expected with many people submitting multiple claim forms, and the trustee is now going through the process of verifying the amounts, objecting to duplicates, and objecting to claims which are invalid.  His goal is to have the claim reconciliation done and a second distribution made before the end of the year.

2.  The forex lawsuit (the trustee says the forex funds were not required to be segregated and thus should go to the benefit of futures customers, the forex customers have filed suit crying foul) should not hold up a second distribution, meaning a third distribution would likely be made upon the successful outcome – for futures customers – of the lawsuit. The lawsuit itself is progressing at a snail’s pace, with discovery to be completed by Sept. 30, 2013 and trial dates to be set around that time. We expect this suit to last through this time next year.

3.  The trustee has met with the CFTC to discuss how their lawsuit against US Bank impacts the actions of the trustee, and following the CFTC suit requested and received an extension of the stay (delay) of the class action lawsuit through August of 2014. Interpretation – the class action lawsuit likely won’t go anywhere until the CFTC has finished their suit, and the CFTC suit is at the very least more than a full year away from any sort of resolution.



  1. You may not have realised that Australian MFG Clients are still
    waiting on the decisions of multiple court battles to get their money back.

    Is it true like some say that “Trustees and Lawyers all like to bleed the dead company and its
    impoverished clients for all the fees they can?”

  2. Geo Bentley says:

    Clearly the regulators were on auto pilot for many years. Segregated accounts have to be sacroscant.
    As embarrassing as it is, it is fairly clear to me Team Ira is on top of this to the eventual restitution for PFG segregated commodity accounts.

  3. As horrific as it was for the clients, their capital should have been “risk capital” above and beyond what an investor needs to be able to live and support their families. What about the employees who were left high and dry missing two months worth of paychecks due? The backlash of losing their clients, their careers, unemployment, personal bankruptcy and more as they tried to support their families? It’s a year later and the former PFG employees are still dealing with this! Some were forced to leave the industry they loved and spent their whole lives in. They were duped just as much as investors, where will their restitution be?


  1. […] Still some hope. From the article by Attain Capital: 1) CFTC lawsuit of U.S. Bank proceeding 2) Trustee anticipates a 2nd distribution before end of year. 3) Another distribution for futures accounts. PFG One Year Later: Where?s my Money? | Attain Capital Managed Futures Blog […]

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