PFGBest bankruptcy documents show more liabilities than assets - KTTC Rochester, Austin, Mason City News, Weather and Sports

PFGBest bankruptcy documents show more liabilities than assets

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  • PFGBest bankruptcy documents show more liabilities than assetsMore>>

  • Russ Wasendorf Sr. and PFG

    Russ Wasendorf Sr. and PFG

    The CEO of PFG stole more than $215 million from more than 13,000 victims and was sentenced to 50 years in federal prison. All related stories can be found here.More >>
    The CEO of PFG stole more than $215 million from more than 13,000 victims and was sentenced to 50 years in federal prison. All related stories can be found here.More >>
WATERLOO (KWWL) -

New documents show the assets of PFGBest are far less than the $500 million to $1 billion originally reported. According to bankruptcy documents PFGBest has around $525 million in liabilities and only $270 million in assets. That leaves about a $255 million shortfall.

Hundreds of pages of bankruptcy documents were filed in court, outlining many details of Peregrine Financial Group's finances. The documents include Russ Wasendorf Senior's monthly salary of $18,750 in November 2011 to the hundreds of website domain names they own to more than 1,500 SpongeBob silver coin sets, 76 of which are missing.

We looked over the bankruptcy documents with Waterloo Bankruptcy Attorney Kevin Ahrenholz. Ahrenholz says the documents are not shocking, they just confirm what many people already knew.

"There's over a $200 million shortfall. I guess everybody's kind of wondering how could that happen over the course of 20 years," said Ahrenholz.

Ahrenholz says the court will divide up the assets among the company's creditors. Those who will have first priority are secured creditors such as bank lenders. Those who come in next are the secured lenders, which includes taxing entities like the IRS. The last group to get their money back is the unsecured non-priority creditors, which includes those who provided goods and services for the company.

"That's the largest... I think we saw $519 million of unsecured non priority creditors have been listed or scheduled and those will be the one that don't receive the compensation that they can do," said Ahrenholz.

Ahrenholz also says the trustee in charge of dividing the assets has a large task in front of him.

"There's a lot going on. It's a very complicated case and I think people just need to be patient with the process and just hope for the best that the biggest dividend can be distributed to the unsecured creditors as possible," said Ahrenholz.

Ahrenholz says the unsecured non-priority creditors may get just a portion of their money back. He says that these creditors could get between 50 to 20 cents on the dollar.

PFGBest customers who were hoping to get some of their money back may have to wait.

According to Reuters, regulators have asked the court to delay returning any customer funds till they can check out PFGBest bookkeeping entries they called "fictitious."

Trustees wanted to return $123 million in customer cash, but according to an article in the Chicago Tribune, the Commodities Futures Trading Commission asked for a delay.

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