Collapsed Futures Firm PFG's Headquarters Nets Just $3.3M

May 30 2013 | 10:48am ET

Without another major futures broker in town, Peregrine Financial Group's Cedar Falls, Iowa, home proved a tough sell.

But sell it finally has, nearly a year after PFG collapsed. But the sale won't do much to help make the firm's customers whole: They lost up to $190 million due to PFG founder Russell Wasendorf's fraud, but the building, which cost $20 million to build, sold for just $3.3 million.

PFG's former headquarters, built in 2008, was designed to support its futures-trading business. Now, the new owners tell The Wall Street Journal that they simply hope "to find a tenant or tenants to bring some jobs back to the community and to the building."

Wasendorf pleaded guilty last year to mail fraud, embezzlement and making false statements to investigators. He was sentenced to 50 years in prison in January.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Is Steven Cohen Going to Buy the Brooklyn Nets?

Jan 19 2015 | 6:49am ET

Rumors that Steve Cohen was interested in the Brooklyn Nets emerged after Scott...

Guest Contributor

Investors Benefit From Evolution Of Fund Of Hedge Funds Model

Jan 22 2015 | 12:27pm ET

The evolution of the fund of hedge funds model over the last few years represents...

 

Editor's Note