CME Group plans $2 million payout to former Peregrine clients

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CME Group Inc plans next month to begin paying $2 million to former clients of Peregrine Financial Group, the failed futures brokerage looted for years by its now-jailed founder.

The payments will go to nearly 200 farmers, ranchers and cooperatives who traded on CME's exchanges, a CME spokeswoman told Reuters on Thursday.

The payouts are CME's first from a fund it established in response to the collapse of MF Global last October, which left a $1.6 billion shortfall in customer funds and shook confidence in an industry where the safety of customer money had long been an article of faith.

CME designed the $100 million fund as a backstop in case the unthinkable should again happen. It launched the fund in April, offering protection to farmers and ranchers who use CME's markets to hedge grains and livestock.

Three months later, Peregrine filed for bankruptcy. Founder and CEO Russell Wasendorf Sr. has pled guilty to stealing more than $100 million from his customers and is currently awaiting sentencing in a jail in Iowa.

So far Peregrine's bankruptcy trustee has released about $123 million from the estate back to former customers, or about 30 to 40 percent of what they were supposed to have in their accounts.

CME's fund pays up to $25,000 to individuals and $100,000 to agricultural coops.

Most of Peregrine Financial's futures customers had less than $50,000 in their accounts.

If combined payouts from CME's fund and the funds returned by the bankruptcy trustee exceed the total in any given customer's account, CME's fund will be repaid the difference from the estate, according to an agreement between the bankruptcy trustee and CME filed in court this week.


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kansas  |  October, 26, 2012 at 11:01 AM

CME is paying millions to defrauded customers and the head of Peregrine is in to jail, in a matter of months. The MF Global case of defrauding customers, meanwhile, is over a year old and they're allegedly still sorting out the finances and No One has even been charged with a crime. It's Obviously very, very good to be a Democrat and Massive Fundraiser for Obama, like John Corzine and his fellow criminal conspirators. Where is the story comparing and contrasting these two cases of mis-appropriation and fraud? As we are just days away from an election that may end or continue this case of Crony Capitalism, Political Corruption and Cover-up; you would think someone in some media outlet would be looking for front-page investigative fame and doing some pulitzer prize hunting - if nothing more.

IOWA  |  October, 26, 2012 at 02:04 PM

Given the circum.stances. With the. CME covering Wassendorfs stealing from his clients. This should make The MF Global case stronger. What have the Republicans DONE? There usual sralling and nothing happens. time is money. But the rrpublicans are not looki.g out for the countries intdrests at stake this whole year,as part of yheir game to yry to make the economy weak. Looks luke they have only proven themselves to be another Russell Wassendorf. Steal until caught, or guilt pushes one to suicide. Amen for obama. John.McCain had 23 years of Romneys tax returns. A.d he chose Sarah Palin. That should tell you more than se want to lnow about Mitt Romney. And now we have.Donald Trump playing games with offering.5 million for obama.s college records. Why doesn't he offer Romney the same for his tax returns for last 20 years. And the stTus of his investments portfolio. Because he already knows

kansas  |  October, 27, 2012 at 10:45 AM

Trolling for Obama? Your point is a ridiculous and pointless litany of non-sequitors and nonsense. The Republicans you seem to mindlessly despise have no ability to influence or control the Obama/Holder DOJ that is responsible for the prosecutions that SHOULD be pursued against MF & Corzine. The race baiting Holder and his purely political DOJ have done nothing but provide cover for Democrat favored criminals since they came into office, and that's a well-known fact. Your entire slobbering paen to Obama is nothing more than a logic-free, "don't look here, look over there", shiny object distraction with little or no connection to reality. If you want to defend your Dear Leader, try making a legitimate argument using facts instead of web meme fluff. This drivel makes you appear to be some kind of cult of personality nut-bag.

Rockford Illinois  |  November, 19, 2012 at 11:02 AM

Typical Dem. Can't even spell let alone put together a rational thought.

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