Friday, 24 October 2014
Last updated 18 hours ago
Aug 28 2013 | 12:05pm ET
When running a multi-decade fraud, it helps to have an auditor who looks the other way. Bernard Madoff had one, and so, it seems, did Peregrine Financial Group’s Russell Wasendorf.
The Commodity Futures Trading Commission has permanently barred Peregrine’s accountant, Jeannie Veraja-Snelling, saying her failure to properly audit the collapsed futures brokerage allowed Wasendorf to steal some $215 million from clients. In her final audit of the firm for 2011, Veraja-Snelling reported some $522 million in customer funds on deposit. When Peregrine fell apart seven months later, $190 million of it was missing.
“As the Peregrine debacle shows, the importance of the independent accountant’s gatekeeper function cannot be overstated,” CFTC enforcement chief David Meister said.
Veraja-Snelling audited Peregrine for a decade, and despite proclaiming that she did so “in accordance with U.S. generally accepted accounting standards,” failed to live up to any standards, the CFTC alleged.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...