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heyyy, what a surprise!

chalk this up to still another FAIL by the SEC.

Here's the "fun" part:

One of the notes, which was a general statement describing Mr. Wasendorf's alleged fraud and signed by him, says regulators first examined Peregrine's use of client funds as far back as 1993, triggering Mr. Wasendorf to start his alleged fraud. Deceiving the regulators was "relatively simple," said the statement
"Deceiving the regulators was relatively simple". !!!

Three Stooges comparisons, anyone?

"Most of the misappropriated funds went to maintain the increasing levels of Regulatory Capital to keep [Peregrine] in business and to pay business [losses]," said the signed statement. It said the funds also were used to build Peregrine's $18 million headquarters in Cedar Falls, Iowa, and to "pay Fines and Fees charged by the regulators."

Authorities, citing Mr. Wasendorf's statements, have said he falsified bank statements to regulators to cover up the shortfall in client funds. Peregrine's collapse has triggered renewed scrutiny of the oversight of the futures industry, which has been hit by other recent scandals, including last year's collapse of MF Global Holdings Ltd.

"I'm astounded that this could go on for nearly two decades and yet nobody checked to see where these bank statements were going, who they were going to, if they were real or not," Sen. Tom Harkin (D., Iowa) said of the Peregrine case in a Senate Agriculture Committee hearing Tuesday.


$18 Mil for a nice new Corporate Headquarters! Sweeeeeeet.

Senator Harkin: NOBODY is minding the Store; you get that, right?

Dear SEC & Sen Harkin: how many more of these fraudsters are out there running amok? hundreds? thousands??


I Have Zero Confidence in the SEC

93%28 votes
6%2 votes

| 30 votes | Vote | Results

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Comment Preferences

  •  Tip Jar (12+ / 0-)

    "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

    by Superpole on Wed Jul 18, 2012 at 05:47:29 PM PDT

  •  They were probably defunded... (4+ / 0-)
    Recommended by:
    phonegery, MKSinSA, ca democrat, DaleA

    like the IRS - now they only (can) go after small fry.

    "The world is my country, all mankind are my brethren, and to do good is my religion." ~ Thomas Paine

    by third Party please on Wed Jul 18, 2012 at 06:01:17 PM PDT

  •  Sad and frustrating, isn't it? (8+ / 0-)

    It's good to see this kind of language:

    “I'm losing faith in self-regulation unless there is adequate, tight oversight by the agencies we fund,” Senator Tom Harkin said
    According to the Commodity Futures Trading Commission chairman, self-regulatory organizations will remain the first line of defense for investors in the commodity markets. Harkin said that’s not good enough.
    Harkin suggested this episode calls into question the idea that the commodity trading industry can be “self-regulated.”
    But, I mean, and really, Senator,
    "I'm astounded that this could go on for nearly two decades .." Sen. Tom Harkin (D., Iowa) said
    "I find it hard to believe — hard to believe ...” Harkin said.
    you need to read the newspapers more.
  •  I have confidence in the SEC (3+ / 0-)
    Recommended by:
    Superpole, phonegery, cosette

    to win National Championships...LOL

    Gotcha! :)

    Never underestimate stupid. Stupid is how reTHUGlicans win!

    by Mannie on Wed Jul 18, 2012 at 06:10:37 PM PDT

  •  maybe SEC board members (3+ / 0-)
    Recommended by:
    cosette, DaleA, blueoasis

    3 new seats selected by the AG's in CA, NY, MASS?

    Tired of hearing crazy voices? turn off FOX News. Single Payer: healthcare for all of God's living creatures in America.

    by ca democrat on Wed Jul 18, 2012 at 06:39:12 PM PDT

  •  Why attack the SEC? The CFTC is the primary (3+ / 0-)
    Recommended by:
    FG, DaleA, trillian

    regulator for Peregrine Financial.

    Not that I think the SEC has been an effective regulator for a lot of the companies that it's responsible for ... but it strikes me as unfair to blame it for not policing PFGBest & Peregrine Financial.

    Peregrine is (was) a futures brokerage, so it came under the jurisdiction of the Commodity Futures Trading Commission -- which seems to have done yet another piss-poor job of overseeing a brokerage firm.

    Oh, and the "self-regulatory" industry group, the National Futures Association also was supposed to "safeguard market integrity, protect investors and help our Members meet their regulatory responsibilities".  Yeah, right.

    "Specialization is for insects." -- Heinlein

    by BachFan on Wed Jul 18, 2012 at 06:50:37 PM PDT

    •  ALL of the Regulatory Agencies (0+ / 0-)

      are failing.

      what exactly do these "regulators" do to earn their considerable pay?

      the problem is since the repeal of Glass-Steagall in 1999 (thanks, Clinton and the rest of the dems who supported this very bad move) we've been subjected to what amounts to financial anarchy. are you OK with financial anarchy?

      are these "agencies" like baseball players? to be considered successful at hitting, you only have to hit the ball 1 out of 3 at bats.

      "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

      by Superpole on Thu Jul 19, 2012 at 06:31:43 AM PDT

      [ Parent ]

  •  Diary the other day about someone's mouse problem. (1+ / 0-)
    Recommended by:

    Discussion about how some cats have zero interest in chasing and catching mice even if you wave a live one in front of their face.

    SEC, CFTC, NFA, whatever; all the positions are obviously filled by these cats, moonlighting in some parallel life out of their allotted nine.

    The Dutch kids' chorus Kinderen voor Kinderen wishes all the world's children freedom from hunger, ignorance, and war.

    by lotlizard on Thu Jul 19, 2012 at 03:28:43 AM PDT

    •  Right, there's just little (1+ / 0-)
      Recommended by:

      to NO accountability, no sense of urgency regarding stopping the scammers/fraudsters.

      it appears DC is rotten to the core.. congress sits on their big phat asses and does nothing

      "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

      by Superpole on Thu Jul 19, 2012 at 06:35:01 AM PDT

      [ Parent ]

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