The NFA fined Peregrine Financial Group Inc. for $700,000 on claims that it neglected to oversee its brokers and failed to implement anti-money laundering policies. According to the complaint, the Futures Commission Merchant (“FCM”) and forex dealer maximized commissions without regard for customers’ best interests. Allegedly, three of the group’s top executives, President Russell Wasendorf Jr., Director of Compliance Susan O’Meara, and Director of Managed Foreign Exchange Nolan J. Schiff, left four of its guaranteed introducing brokers (“GIBs”) unsupervised. GIBs refer clients to open accounts at the futures firm. The compliant alleged that all four GIBs made deceptive sales solicitations. Wasendorf, O’Meara, and Schiff neither admitted nor denied the allegations in making their settlement.
In addition to the $700,000 settlement, the NFA ordered Peregrine to retain a consultant to review its existing procedures for supervising brokers and customer accounts and designate an AML officer. It is also prohibited from entering agreements with brokers for the next two years.
Peregrine has headquarters in Chicago and Cedar Falls, Iowa. The futures and forex broker also has branch offices in California, Florida, Illinois, Michigan, and New York.