Peregrine Files For Ch. 7 As Fraud Scandal Unfolds

Law360, New York (July 11, 2012, 11:56 AM EDT) -- Reeling Chicago futures broker Peregrine Financial Group Inc. filed for bankruptcy protection in Illinois late Tuesday in the wake of a U.S. Commodity Futures Trading Commission fraud suit alleging the firm misappropriated more than $200 million in customer funds.

The firm, also known as PFGBest, listed assets of between $500 million and $1 billion and liabilities of between $100 million and $500 million in its Chapter 7 petition. The move was widely expected after the CFTC’s suit and an emergency action Monday by the National Futures...
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