PFG Update: Customers (finally) Getting More Money

Just in time for the holidays, former customers of Peregrine Financial are getting a long awaited stocking stuffer. The PFG trustee announced today that they had filed a motion to return more money to former PFG Customers:

“…in an amount up to $41 million as follows: (i) with respect to 4d Customers, approximately seven percent (7%) ($27.5 million) of the 4d Customers’ account balances, and with respect to 30.7 Customers, approximately forty-five percent (45%) ($13.5 million) of the 30.7 Customers’ account balances. If the motion is approved, the total interim distributions made to 4d Customers and 30.7 Customers will be approximately thirty-seven percent (37%) and eighty-five percent (85%) of their Allowed Futures Claims, respectively.”

All around, this is welcoming news, as any money getting back to its rightful owners is a definite step in the right direction; but did Mr. Bodenstein have to shoot so low?

The 30.7 balances (the amount of money held by customers in foreign currencies to trade futures on foreign exchanges) have more than enough money to make them whole, and Mr. Bodenstein himself said ““We anticipate that they’ll get close to all their money,”, but this distribution only takes them to 85% whole. If there’s a surplus there, why hold back 15%.  And those with 4d balances (the bulk of the PFG business), are only getting another 7%, when that could have easily been as high as 20% by our estimates.  So what’s the hold up?  In our best Rounders accent – “Pay that man his money.”

The motion hearing is scheduled for next Wednesday (December 18th) In Chicago, and there doesn’t seem to be any reason for the judge to deny it; meaning customers could be getting a check before the banks are closed for Christmas, and should be getting one by the end of the year.

Related:

PFGBest One Year Later

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Comments

  1. So this 7% disbursement is supposed to be of comfort? Seems to me that there is still massive discrepancy over total funds in this case. I´ve been going through paperwork on the http://www.PFGChapter7.com website, this is what I found.. THEIR figures, not mine….

    According to page 13 of 17 of the court dockets http://omnimgt.com/CMSVol/CMSDocs/pub_46535/445008_Trustees%20Second%20Motion.pdf the trustee has on hand approximately 68million of Futures Customer Funds. He is about to distribute a mere 41million of that, leaving 28million in his fat bank account.

    Contrary to the above::

    According to the Trustee Cash Summary 11/15/2013 http://omnimgt.com/CMSVol/CMSDocs/pub_46535/399445_DRAFT.PFG%20Cash%20Summary.11.15.13.pdf there were recovered funds of 249million, of which so far 137 million have been distributed (123million to Vision, etc, plus others)… That leaves 111 million ? Why does the trustee say he only has 68 million in the court dockets? Also, on the same “Trustee Cash Summary 11/15/2013 it clearly confirms the 111 million left as bank balance….

    More interesting is the fact that the “Cash Summary” ALSO confirms that there is 130million+ held at other financial institutions… Has this 130m “at other financial institutions” (mostly JP Morgan) been forgotten?

    The level of communication is totally un-acceptable. By their own hand it would be confirmed above that there is 130m + another 40m+ that has not even been mentioned in the court papers. It´s all documented, why do the court get different figures from what they publish?

    What will ever happen to this 130 + 40m of OUR money?

    Kind regards,

  2. Sorry, I made a mistake on that message above. Apologies for my initial error.

    The total cash on hand is 111m + 19m which are at other banks…. Total 130m. Never the less, the statement confirms 130million + of cash on hand.. Why do the court dockets state 68million attributable to Futures customers… It´s ALL our money.

    If there is 130m then there is 130m, it´s certainly not the 68m mentioned to the court. Why are they allowing STOLEN Futures Client Money to be distributed elsewhere?

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