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| Russell Wasendorf Sr founded PFG in 1990 |
A US
regulator has frozen the accounts of US futures brokerage Peregrine Financial
Group (PFG) following the attempted suicide of its chairman.
The
National Futures Association said it was worried PFG did not have enough money
to meet obligations to clients.
Chairman
Russell Wasendorf Sr was found in his car near its Iowa headquarters.
In a
statement to clients, PFG said he had attempted suicide, which had prompted
investigation of "some accounting irregularities".
The
National Futures Association (NFA) said it had received information suggesting
that Mr Wasendorf may have falsified bank records and that it only had about
$5m (£3.2m) of the $225m it had claimed to have in a deposit account.
Local news
reports said that Mr Wasendorf had been taken to the University of Iowa
Hospitals where he was in a critical condition.
The
problems at PFG are likely to increase calls for tighter regulation of futures
brokers. In October, the much bigger brokerage MF Global filed for bankruptcy.
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MF Global redux: CFTC says Iowa broker misused over $200 million
U.S. broker missing $220 million in client funds; founder attempts suicide
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