The U.S. Commodity Futures Trading Commission (CFTC) said that the Peregrine Financial Group Inc. trustee should delay distribution of $123 million to customers of the defunct futures brokerage until after testing customer accounts, Bloomberg News reported yesterday. The tests are essential because Peregrine collapsed amid a fraud and theft of money by its founder, Russell Wasendorf Sr., the CFTC said yesterday in a court filing. The regulator asked the judge not to approve the payout until all the accounts of intended recipients are validated. Peregrine filed for chapter 7 liquidation on July 10, hours after the CFTC sued accusing the firm and Wasendorf of misappropriating more than $200 million in customer funds.
