PFGBest Founder Attempts Suicide as $200m Goes Missing from Accounts

PFGBest Founder Attempts Suicide as $200m Goes Missing from Accounts

July 10th, 2012

Via: Guardian:

The founder of the US broker PFGBest is said to have attempted suicide as it emerged that more than $200m (£130m) appeared to be missing from clients’ accounts.

Russell Wasendorf Sr, a 40-year veteran of futures markets, was found in his car near the company’s Iowa headquarters and is in a critical condition at the University of Iowa Hospitals, according to local news reports.

The apparent suicide attempt came hours before the National Futures Association (NFA), an industry group that also plays a regulatory role, said it had issued an emergency order to in effect freeze PFGBest’s operations after finding that a US bank account the broker said contained $225m in customer funds actually held only $5m. “It appears that PFG does not have sufficient assets to meet its obligations to its customers,” the NFA said.

One PFGBest broker told Reuters that Wasendorf’s son, Russ Wasendorf Jr, had informed employees about the events earlier in the day, saying a suicide note had been found alluding to financial troubles with the company. The younger Wasendorf “sounded like he was in another world”, he said.

Research Credit: Jb

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