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Independent Commodity Trader Kevin Davey on his account being frozen in the fallout from PFGBest missing $220 million in customer funds.
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Until for -- he was a trader there.
He pulled out of that operation a couple of months ago right -- had a couple months ago -- -- he said I had he had had enough he saw all kinds of problems there of that.
Clearly the regulators were not able to really pinpoint.
What about people who have money stuck there are now independent commodity trader Kevin Davies -- PF -- best client.
His account is frozen he's joining us live from Cleveland Kevin.
You've got an email yesterday talk about what you heard and then what you thought and then have to do.
-- -- Well I received an email about 4 PM yesterday.
And it said there was some kind of emergency involving the CEO.
There was a suicide attempt and some accounting problems and oh by the way.
Your accounts been frozen -- you can't get any of your money.
That was all I heard from them until this morning -- then I.
Talked to some trader friends I know.
One overseas and England.
And we kind of talked about it and shared whatever information we had and then the -- F -- Report came out where it said basically -- 220.
Million dollars was missing.
In the scary thing about that was.
That it said.
It might be going back to February of 2010.
So this might have been going on for a couple years.
How much money do you have stuck in the PFG best funds there.
Luckily for me it's not.
Enough that.
We are still build a live feed my family without -- what I did after the MF.
Global incident was I opened various accounts at different brokerages.
-- to kind of spread my risk around because what I didn't want was exactly what happened yesterday -- for your account would be frozen so.
So and relatively okay compared to some other people I know.
This goes to the heart of the real fear and the lack of confidence in the market doesn't it Kevin -- -- you guys are all mom and pop traders and organizations.
Putting your money and what in essence is sort of a bank for futures traders right I mean explained why -- had your money they're in the first place.
Right.
You know what I use it to trade so -- need money to put up margin to trade.
-- commodity futures financial futures energy futures.
And without that money I can that trade in cannot make any money.
You -- the tough part about all this is.
If I lose money trading in my own view that's my fault -- -- that's my -- and I accept that but when it's somebody taking my money.
That's whatever I really get a.
-- about eight there were all kinds of red flags are starting from several years ago but most recently a couple of issues they got busted for 700000 dollar lawsuit there.
-- -- apparently turned a blind eye to a customer that had money with them who was I involved in a Ponzi scheme and is now spending 25 years in prison a kind of Trevor cook.
And then all kinds of other issues so as they may have falsified records.
It's important to note the back in 2008 the founder maybe we should put his picture up once again Russell Watson -- war.
Had written an op Ed in the Wall Street Journal come -- about regulators requiring them.
To have capital higher capital levels so that this kind of thing didn't happen.
So you know if it's true and again all allegations but we don't know because he's just attempted suicide.
But at what do you say about the regulators do you blame -- -- or when somebody's out to do some evil.
They'll find a way to do it.
Well that's true and meet somebody wants to be something that will always find a way but the flip side to that is.
The whole futures industry it always been.
Set upon with this customer segregated accounts and that's how they said your money was safe.
And then back in October of last year MF global.
Customer money disappeared now the same thing with PF chief I can understand it happening once but.
The second time ministers really inexcusable.
-- -- good luck -- and keep us posted.
Thank you captain Davey is -- come on.
