Victims jockey to maximize refunds in PFGBest case

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Associated Press

Posted on January 30, 2013 at 4:07 PM

Updated Wednesday, Jan 30 at 5:01 PM

IOWA CITY, Iowa (AP) — The judge overseeing the bankruptcy of an Iowa-based brokerage that was looted for years by its founder is faced with an unusual decision in divvying up the company's remaining assets.

U.S. Bankruptcy Judge Carol Doyle must decide whether customers who traded foreign currency through Peregrine Financial Group, Inc., are entitled to getting some or all of their money back even though they may have known going in that such trades were less protected.

Company founder Russ Wasendorf Sr., is expected to be sentenced to prison on Thursday for embezzling up to $215 million in funds.

Customers who traded in commodities through the company say they should be repaid first, even though Wasendorf looted their accounts.

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