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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note