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CFTC sues PFG for 'violating' customer funds

WASHINGTON (MarketWatch) - The nation's commodity's regulator on Tuesday said it filed a lawsuit against Iowa-based investment firm Peregrine Financial Group Inc. alleging that the firm committed fraud by misappropriating customer funds. According to the Commodity Futures Trading Commission, in July 2012, the firm allegedly falsely said it held more than $220 million of customer funds when in fact it held approximately $5.1 million. The CFTC complaint in the United States District Court for the Northern District of Illinois follows a similar situation with New York-based MF Global, which filed for bankruptcy on Oct. 31 after disclosing exposure to derivatives and other investments related to billions of dollars in European sovereign debt and leading to $1.6 billion in missing customer funds. According to the suit, PFG CEO Russell Wasendorf attempted to commit suicide Monday.