The frontline regulator for failed futures brokerage Peregrine Financial Group says the firm’s founder “fooled” regulators with his massive fraud, even though the auditors who examined the firm followed all of the proper steps and procedures.

In prepared testimony for a U.S. House Agriculture Committee hearing later on Wednesday, National Futures Association President Daniel Roth stresses the lengths Peregrine Financial Group’s founder, Russell Wasendorf Sr., went to in hiding his scheme for roughly two decades.

“The simple fact is that Wasendorf’s forgeries fooled us, and fooled us for longer than any of us would like,” Roth said.

Source: Huffington Post

(Source: yellowaids)