Regulator: $220 million missing at Iowa brokerage

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Associated Press

Posted on July 10, 2012 at 6:03 AM

Updated Tuesday, Jul 10 at 6:03 AM

A regulatory group says it can't account for $220 million in customer funds at Iowa-based brokerage Peregrine Financial Group and has ordered the company's accounts frozen.

In a statement to clients, PFG explained the action being taken by the National Futures Association. It also said its founder and chairman, Russell Wasendorf Sr., attempted suicide earlier Monday.

PGF officials didn't return email and phone messages from The Associated Press.

Attain Capital spokeswoman Lauren Nelson says her company has a "substantial amount" of business with PFG and is assessing its accounts. Nelson provided the PFG statement to the AP.

The National Futures Association, which serves a self-regulatory role for the industry, says it received information that PFG may have falsified bank records and had about $5 million of $225 million it claimed.

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