Peregrine Financial Group Essay Example

is to protect the public and market users from fraud, manipulation, abusive practices, and systemic risk related to derivatives subject to the Commodity Exchange Act, failed in their responsibility in this case.

The control agency, responsible for oversight, failed to prevent long-term fraudulent activities by Wasendorf who exploited weaknesses in the system. Despite clear motivation to continue the fraud, the CEO managed to misstate financial statements for almost two decades, resulting in stolen funds from clients. NFA auditors overlooked a critical event during their audit of FTG books as they received erroneous balance confirmation information from PFG's US bank. Despite the fraud being highlighted, auditors did not follow up, and this has again raised questions about the effectiveness of control agencies. Although lessons are learned after major fraud scandals occur and controls and laws increase, fraudulent activities continue. While the CEO has been sentenced to 50 years in prison and fined heavily, third-party harm remains unresolved, and $200 million is still missing.Although similar lessons have been learned from previous large-scale fraud cases, this type of fraudulent activity continues to persist. Criticisms have been directed towards the inadequate controls in place and the non-proactive role of control agencies.

It is evident that a change is necessary. Although there are more controls and laws in place, fraud continues to occur even though there is a common practice of publishing lesson learnt papers after large fraud scandals. This particular case is one of many instances of White Collar crime, the majority of which do not receive media coverage.

It is the responsibility of society to track and prosecute all forms of fraud in order to guarantee appropriate punishment for white-collar criminals.