As we came across the news wire that PFGBest is under the scrutiny of regulators were approximately 220M customers funds are missing from the broker's bank accounts is nothing really new. Their involvement with Trevor Cook troubles in Forex trading, as then Wasendorf Sr. didn't do more to distance the company from a massive $194 million forex-trading Ponzi scheme run by Trevor Cook in Minnesota then, who admitted defrauding more than 700 investors. Cook is serving 25 years in prison.
Before PFGBest, the flagship was then called simply Peregrine Financial Group (PFG), but there was a division created under PFX where forex trading was offered for retail clients and clearing services was made through PFG. Apparently, our group of investors used to trade our Forex positions with PFX in Chicago for almost 2 years with no hitches in 1995-97. But when it came to finally withdrawing funds it took them such a long time to clear. As they referred to their procedures; where client segregated funds had to be withdrawn from their counter-party once positions were established and needs to be closed-out. That was the 1st red-flag; since our positions were long time settled. And by mistake they have sent us counter-trade positions of our trades marked in the financial futures; which we gave them notice and demand for explanation. The head FX dealer then explained it was a mistake and meant for another client. However, what they didn't know was that we were also trading the financial futures with another broker-dealer. We were also informed that the company PFX do invest client's funds on segregated accounts only in Government TBills and all Forex trades are guaranteed and cleared through their main company PFG. How true those information then, was really unclear since it was the years 1995-97 where there was a grayline in Forex Trading guidelines.
With that said, all these experiences has kept us be really aware of the surrounding circumstances while trading the forex market. And the investigation now has finally came to a point that regulations can only best serve the investors and clients. Due diligence in trading is more than enough and not add to the worrisome thought of having your trading capital be at risk. Good we were able to finally get our funds after giving them a last day notice and wired the funds to our bank account within two days notice. And decided not to trade with them any longer.
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