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CME GROUP TO PAY $2 MILLION TO FAILED BROKER'S VICTIMS
Oct. 29, 2012
BrownfieldAgNews reports:
Reuters reports that the CME Group will pay $2 million to former clients of failed futures brokerage Peregrine Financial Group.
The report says the payments, to start next month, will go to nearly 200 farmers, ranchers and cooperatives who traded on CME's exchanges.
The payouts are CME's first from a fund it established in response to the collapse of MF Global last October. The fund pays up to $25,000 to individuals and $100,000 to ag coops.
According to Reuters, most of Peregrine's futures customers had less than $50,000 in their accounts.
Peregrine founder and CEO Russell Wasendorf Sr. has pled guilty to stealing more than $100 million from his customers and is currently awaiting sentencing in a jail in Iowa.
So far, Peregrine's bankruptcy trustee has released about $123 million from the estate back to former customers, or about 30 to 40% of what they were supposed to have in their accounts.
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