WASHINGTON — The Commodity Futures Trading Commission reviewed operations at Peregrine Financial Group at least twice since 2006 without detecting the fraud that led to the collapse of the futures broker and a $200 million shortfall in client funds.
The agency conducted examinations at Peregrine in 2007 and 2008, according to a list of CFTC reviews obtained through a public records request. The list, which includes reviews between 2006 and Nov. 9, 2011, does not detail what records or procedures examiners evaluated.
A third review was listed in 2011. A CFTC official said the 2011 exam was scheduled to oversee compliance with foreign exchange regulations but did not take place because of limited resources. The official spoke on condition of anonymity because the agency was still reviewing the matter.
Peregrine is under investigation after chief executive Russell Wasendorf Sr. attempted suicide. Wasendorf had written a signed statement that he committed fraud for two decades at his Iowa-based company, according to a criminal complaint.