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FBN’s Sandra Smith on the latest details in what may have led to PFBest’s collapse missing client funds.
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Sent shockwaves throughout the brokerage and financial communities today yet another imploding brokerage firm being investigated.
For allegations of missing client -- a big time.
This time it is -- T -- in the missing client funds are valued at up to 220.
Million dollars our very own -- Smith joins us -- -- All over this.
Story since have broken it just keeps unfolding in features industry -- play in lockdown today a lot of the brokerage firms I talked to say analysts are fielding phone calls from nervous investors.
Saying what -- I do with my money they don't trust things right now.
It just doesn't look at and how -- this happened at after MF global is the scariest part.
-- here's the latest details that we have the FBI has opened an investigation today into PFJ.
The CFTC which is one of the regulators of the futures industry is suing.
200 million dollars that you just mentioned.
-- they say that there's a shortfall that's why they're suing.
The national futures association the and FA which is the second regulator of the futures industry.
They are saying that yet she a best falsified.
Records meaning.
They said they had -- dollar of funds in this case 400 million dollars in those segregating client funds that was the issue with MF global.
-- -- -- 225.
Million of those funds were housed at US bank.
We get word yesterday morning fifteen chairman and sole owner of the firm Russell Watson -- of attempted suicide at the company's headquarters in Iowa.
-- an FA as its -- is.
Track down the funds that where are they they -- to US bank found I'd million dollars analysts and that's the problem.
Where is the money where we're at the regulators.
Mrs.
story that's really still developing and the founder obviously in no position to answer these questions right now I just got the phone with the University of Iowa at this hospital where he was airlifted from he was sent to an emergency room after they found him in his car in one of the -- -- At the compound in Iowa I he's been airlifted and brought to another hospital -- and actually know.
Opposition discuss -- those funds are now at this point we don't know if he ever will be.
The speculation hearing on the street analysts there are some speculating that there's a Ponzi scheme involved here.
There's others that are spot talking about Watson -- -- spending habits are -- spending lavishly.
-- not only on things like the compound that thing that built for millions of dollars in Iowa but also the are at the compound he was -- restaurant -- is buying.
Construction companies in Romania he was spending lavishly that's one thing that they're zeroing in on earnings and Nacional hundreds of millions dollars in client money missing in everybody's asking where was the regulators -- Smith thank you.
