Peregrine Trustee Seeks to Subpoena Banks on Transfers

The trustee liquidating Peregrine Financial Group Inc. asked a judge for authority to subpoena the defunct futures brokerage’s banks including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) for information about transfers from segregated accounts and proprietary accounts.

Citing a lawsuit by the U.S. Commodity Futures Trading Commission against the company and founder Russell Wasendorf Sr. over misappropriation of customer funds, the trustee said he needs records from “various financial institutions” to identify “abnormalities” in the company’s records.

Ten financial institutions maintained account applications, authorization forms, agreements, statements, wire transfers, canceled checks, deposit slips and correspondence, he said.

“Official financial institution records will also enable the trustee to examine transfers from the debtor’s proprietary accounts and segregated accounts,” Ira Bodenstein, the trustee, said in a filing today in federal court in Chicago.

The other financial institutions that will be asked for information are U.S. Bank, Bank of New York Mellon Corp., First Premier Bank, Commerzbank AG, Royal Bank of Scotland Plc, Jefferies Bache LLC, Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS), he said.

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