Founded in 1980, Peregrine Financial Group, Inc. (“PFG”) was founded in 1992 as a Futures Commission Merchant in the U.S. and officially registered with the National Futures Association, specializing in commodities and currency futures brokerage services. In 2008 was renamed as PFG PFGBest, it was supposed to have customers in more than 80 countries and more than $ 600 million in assets by 2012. On 10 July 2012 PFG for Chapter 7 protection after its founder and chairm filed … Read more »

Founded in 1980, Peregrine Financial Group, Inc. (“PFG”) was founded in 1992 as a Futures Commission Merchant in the U.S. and officially registered with the National Futures Association, specializing in commodities and currency futures brokerage services. In 2008 was renamed as PFG PFGBest, it was supposed to have customers in more than 80 countries and more than $ 600 million in assets by 2012. On 10 July 2012 filed for Chapter 7 protection PFG after its founder and chairman, Russell Wasendorf, Sr. attempted suicide. In his suicide note, he described his fraudulent act embezzled as much as U.S. $ 220 million of PFG bank accounts in the last 20 years. He admitted that his ego too big to fail and admit he was cheated. A completely independent firm Peregrine Investment Holdings Limited (“PIHL”) was founded in 1988 by former Citibankers Philip Tose and Francis Leung, backed by many Hong Kong business elites. It was “Asia’s only indigenous investment bank,” and took a prominent role in the local stock exchanges. PIHL underwrote a U.S. $ 265 million bond issue of Steady Safe, an Indonesian transportation companies, which together until the end of 1997. In January 1998, PIHL was forced into liquidation after they lost all liquidity and could get white knight or emergency by the Hong Kong Monetary Authority. A report commissioned by the Government of Hong Kong cited poor risk management and internal control deficient as the causes of the downfall of the PIHL. .
«Hide

from
Amy Lau
Agnes K.Y. Tai
Source: University of Hong Kong
29 pages.
Release Date: 26 June 2013. Prod #: HK1005-PDF-ENG
The Tale of Two peregrine HBR case solution

[related_post themes="flat"]