Thursday, 2 October 2014
Last updated 22 min 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.
Oct 2 2014 | 9:16am ET
Gregory Barrett is a principal at Dyal Capital Partners, which takes minority equity stakes in established hedge fund managers—those with assets under management of $1.5 billion to $6 billion. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...