Peregrine Seeks Liquidation After CFTC Sues Over Cash
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Peregrine Financial Group Inc. filed to liquidate in bankruptcy after the U.S. Commodity Futures Trading Commission sued the brokerage, alleging a $200 million “shortfall” in client funds.
Peregrine listed assets of more than $500 million and debt exceeding $100 million in a Chapter 7 petition filed yesterday in U.S. Bankruptcy Court in Chicago. Separately, U.S. District Judge Rebecca Pallmeyer issued an order freezing Peregrine’s assets at the CFTC’s request, saying it appeared there was “good cause” to believe the firm and its founder, Russell Wasendorf Sr., violated the federal Commodity Exchange Act.