Capital Confirmation, which runs Confirmation.com, is credited with helping to unveil the massive $215 million fraud at Peregrine Financial Group (PFG) in July 2012. The web-based audit confirmation service was hired by the National Futures Association (NFA) last year and applied its technology to PFG. After forcing PFG to use the electronic confirmation service, rather than use the traditional paper-based auditing system, PFG’s fraud was discovered by the NFA.
Brian Fox, founder and chief marketing officer of Capital Confirmation, explains how this straightforward technology of providing a third party confirmation service, can help protect customer funds and restore customer faith in the audit system used in the futures industry.
Also see — Confirmations: Made in China
- Customer Protection Regulations on MarketsReformWiki (link)
- NFA Proposed Rule on Protection of Customer Funds, August 2012 (link)
- Study: Analysis of NFA Audits of Peregrine Financial Group, January 2013 (link)
- Brian Fox on MarketsWiki (link)
- CFTC Final Rule: Reporting, Recordkeeping, and Daily Trading Records Requirements for Swap Dealers and Major Swap Participants (link)
- Confirmation.com (link)
- PFGBest’s Wasendorf Arrested – The Audit Confirmation that Caught Him (link to Forbes article)