CME plans payout to former Peregrine customers

Reuters reports that the CME Group will pay two million dollars to former clients of failed futures brokerage Peregrine Financial Group.

The report says the payments, to start next month, will go to nearly 200 farmers, ranchers and cooperatives who traded on CME’s exchanges.

The payouts are CME’s first from a fund it established in response to the collapse of MF Global last October.  The fund pays up to 25-thousand dollars to individuals and 100-thousand dollars to ag coops.

According to Reuters, most of Peregrine’s futures customers had less than 50-thousand dollars in their accounts.

Peregrine founder and CEO Russell Wasendorf Sr. has pled guilty to stealing more than 100-million dollars from his customers and is currently awaiting sentencing in a jail in Iowa.  So far, Peregrine’s bankruptcy trustee has released about 123 million dollars from the estate back to former customers, or about 30 to 40 percent of what they were supposed to have in their accounts.

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