I picked this up from Anne Barnhardts blog: This is just an excerpt,but it looks like that bankruptcy trustee, is also seizing all Forex and Metals accounts, and using them to pay legal fees and other creditors.
Does it really get any better than this? The Judge has approved the "taking" of these accounts after reclassifying them as "Unsecured Creditors", exactly what happened in MF Global.
Like I always said, never, never, never believe that someone else can invest your assets better than you can. This is a case to take personal delivery of physical commodities when purchased rather than leaving them in a brokerage account.
You are witnessing the complete breakdown of law in this country, where this "wrongful taking" of assets of others held in custody by this company are being taken to pay legal fees of the trustee et.al.
Doesn't this give you that warm "fuzzy feeling" when you know that we have the "rule of law" protecting our assets and our rights in this country. We are screwed! John
"Attention PFG FX and Metals Account Holders,
We are contacting you as fellow Peregrine Financial Group, Inc. (PFG) Forex and Metals account holders. We would like to share information with you that directly impacts all Forex and Metals accounts during the current PFG bankruptcy proceedings. The following information pertains to the perilous status of our accounts and should be of concern to every Forex and Metals account holder. Please read this entire e-mail as this is not spam.
A fellow FX account holder, Scott Shofner, contacted the PFG Trustee, Ira Bodenstein, and asked him directly why there are no plans to distribute the Forex and Metals accounts. The Trustee informed Mr. Shofner that he categorized our accounts as unsecured and therefore our accounts are not protected under the bankruptcy laws. (At least two additional Forex account holders have been told the same by the Trustee.)
The Trustee also stated that because we signed the PFG Risk Disclosure Agreements when opening our PFG accounts it puts our accounts at full risk. The results of this conversation prompted the search to find proper legal representation to protect our FX and Metals accounts.
A fellow FX account holder, Rick Medley, appeared and represented himself in the PFG courtroom last week (9/12/12). Inside a courtroom filled with attorneys representing PFG Futures/Options/Commodities account holders, there was no legal council representing us as FX and Metals clients. Contrary to our previous understanding, not even the Commodity Customer Coalition (CCC) appeared to be supporting FX and Metals clients in the courtroom. Mr. Medley confirmed from his presence and while addressing the court during the bankruptcy proceedings last week that FX and Metals clients were without legal representation in Judge Doyle’s courtroom. Mr. Medley stated in court on 9/12/12 that it was his understanding that all the money Mr. Wasendorf had stolen came out of futures accounts and no money was stolen from Forex accounts. Neither the Trustee nor anyone else disputed this in court. His testimony in front of Judge Doyle was the first step in representing our accounts.
Our Forex and Metals monies are currently intact at JPMorgan Chase Bank and Royal Bank of Scotland as confirmed by the Trustee. You may think that because our accounts are listed in the Trustee’s documents that our accounts are safe. Initially we believed this as well. In fact, if you carefully read through all the Motions, schedules and documents submitted to the bankruptcy court, nothing could be farther from the truth.
Our accounts are at risk of being completely emptied in the current legal proceedings - effectively stealing our money in the next few weeks - and converted to pay Futures account holders and the Trustee’s law firm.
We view what may be about to take place as equivalent to criminal theft/larceny. We never in our wildest dreams thought that one man or a group of lawyers could put 100 percent of our accounts at risk, do it openly, publicly, and legally get away with it.
The Trustee’s Motions are designed to distribute $123 million to Futures account holders – which was approved in court on 9/20/12 – and will deplete the funds available to Forex and Metals account holders. We need to immediately protect our accounts.
If we let the Trustee and the dozens of lawyers representing non-Forex and non-Metals clients take our money without doing anything about it, then we don’t have anyone else to blame but ourselves. We cannot sit idly by and watch our hard earned money be divided between creditors and other customers.
A song from when we all lived in the "real" world!