After the MF Global fraud and debacle, a new verb was introduced into the Lexicon of American finance. To have your segregated funds stolen and used fraudulently by a broker or investment bank is now considered to be Corzined.
In a not so shocking event which came to light on Jul 8, futures investors who held accounts with PFGBest awoke to discover than the firm had not only spent all their money, but was completely insolvent as investors discovered yet another corrupt firm gambled away their savings.
PFGBest, which used to be the old Alaron Trading, has stolen at least $220 million of customer funds, which is fully HALF the entire customer asset base. The firm's owner attempted suicide this morning in the parking lot outside of the corporate HQ in Iowa.
While claiming to have over $200 million in bank accounts, it turned out that PFGBest only had $10 million at most. And they had been short NINETY-FIVE PERCENT of their seg funds for at least five months, and it may be closer to two years. The reportage on the timelines is very fuzzy. - Ann Barnhardt
The former futures broker predicted rightly that MF Global was not the only one to steal segregated funds to gamble on their own risky investments. And as more and more investors in the corrupt U.S. markets discover the ponzi scheme of being Corzined, the sooner Americans will determine that the adage of if you don't hold, you don't own it is the standard for assets today.