It isn’t just one! What about MF Global? What about the on going Libor scandle? What about this from Ann Barnhardt?
So you think that PFGBest is the first time that the NFA has inexplicably “missed” hundreds of millions of dollars from a non-clearing FCM that they had under their auditing auspices?
Oh, you would be very, very wrong. Let me tell you the tale of Sentinel Management Group, a non-clearing FCM that operated as a hedge fund for other FCMs, that was a Ponzi scheme which when it finally collapsed in 2007, was “missing” $500 million.
The NFA’s own report on Sentinel, for which the NFA was the auditing body, found:
“Sentinel failed to maintain adequate books and records, including records to demonstrate the location” of some accounts.
Huh. How is that possible, given that the NFA auditors had signed off on every audit ever performed of Sentinel, since the NFA was itself the auditing body?
Apparently, just as with PFGBest, the NFA was grossly, grossly negligent in its due diligence - almost certainly intentionally - and then mid-level robosigners who were neither competent nor possessing any real knowledge of Sentinel’s books were told to sign off on the Sentinel audits.
More at:
You’ve clearly got a bee in your bonnet.
Why don’t you pour yourself out a tall, cold one; sit down in your favorite chair, take a few deep breaths, and relax.