JPM, Not US Bank Held PFG Segregated Client Funds
Early reports from the NFA and CFTC regarding the PFG segregated client fund theft claimed that $215 million of PFG’s segregated client funds were missing from a US Bank account.
That seems interesting to us considering the fact that PFG clients were informed their segregated funds were held by JP MORGAN, and wiring instructions for clients directed wires to be sent to JP MORGAN CHASE!!
The investigation into the collapse of Iowa brokerage firm Peregrine Financial Group is notable for one name that has not yet turned up: JPMorgan Chase.
JPMorgan, the country’s biggest bank, held customer accounts for Peregrine, doing business as PFGBest. But in alleging that Peregrine took customer money, the National Futures Association and Commodity Futures Trading Commission have claimed that customer money is missing not from a JPMorgan account, but from a U.S. Bank account.
That’s news to some Peregrine clients.
“All of my clients thought the money was at JPMorgan,” said Mark Sackoor, managing director at Abaco Futures in Boynton Beach, Fla. Sackoor was an “introducing broker” for PFG, connecting individual clients with the firm, which held their money.
Brokerage firms like PFG are required under federal regulations to disclose the name of the bank that holds segregated customer accounts, and JPMorgan was the only bank named in that capacity on the PFG Web site. If you were a client who wanted to send money to PFG, its Web site directed you — and still does — to wire the money to a JPMorgan account called the “PFG Inc. Customer Segregated Funds Account.”