https://francinemckenna.com/wp-content/francine-mckenna.png 0 0 Francine https://francinemckenna.com/wp-content/francine-mckenna.png Francine2014-02-24 09:51:212014-03-27 12:29:52Point-by-Point Case Comparison Of MF Global, Sentinel and PFG Best
Point-by-Point Case Comparison Of MF Global, Sentinel and PFG Best
|Broker-dealer and FCM||Y-FCM of FCMs||Y||Y|
|Misused customer segregated funds for proprietary purposes||Y||Y||Y|
|Main banker||BONY – no CFTC sanction||JPM – no CFTC sanction (JPM also audited by MF Global auditor PwC.)||US Bank – CFTC filed suit.|
|Executives charged, convicted by SEC or DOJ||Y – Trader plead guilty, cooperating, CEO going to trial. Five years until indictment.
Y-CEO Bloom On Trial seven years later. CONVICTED
|N – CFTC suit against execs||Y – CEO Wasendorf plead guilty, in jail.|
|False customer account statements||Y||? – Given that money was gone, some customer statements may have been false. Reports to regulators were falsified.||Y|
|Lack of segregation of duties||Y||Y – CEO and Chairman was also head proprietary trader||Y – Wasendorf controlled bank accounts and falsified bank statements.|
|Bank confirmation fraud||?||? – Edith O’Brien refused to sign request from JPM confirming transfers to proprietary accounts did not come from customers.||Y – Auditor did not confirm balances directly with bank. CEO redirected requests ot him and signed false confirmations.|
|Auditor sanctioned by CFTC (All three auditors were PCAOB registered and PwC and RSM McGladrey regularly inspected although not known if these engagements ever inspected.)||CFTC sanctioned AMG and McGladrey and Pullen LLP. Audit partner banned (His second offense.)||PwC – no||Veraja-Snelling – Yes|
|Audit partner||G. Victor Johnson||Linda McGowan – Also missed the Madoff fraud as PwC’s emissary on behalf of feeder fund audit client Fairfield Greenwich to check out back office. She was partner of Knight Capital audit 1995-2000.||Jeannie Veraja-Snelling sole practitioner, sanctioned by CFTC|
|Risky securities lent under repo agreement to fund proprietary trading?||Y – CDOs||Y – Sovereign debt||N – Wasendorf embezzled customer funds and hid with false customer statements. Used proceeds to enrich himself and prop up company.|
What is the status of the case against U.S. Bank regarding PFGBest?
Can we plan on another distribution from the trustee?