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

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of