Review Of Nfa 's Audits Of Pfg From The Period Of 1995 Through 2012

803 Words Dec 9th, 2015 4 Pages
he BRG Investigative Team conducted a review of NFA’s audits of PFG from the period of 1995 through 2012. During the course of its investigation, the BRG Investigative Team reviewed over 190,000 NFA documents containing over 3 million pages, including over 166,000 emails and related attachments sent and received by current and former NFA employees. The BRG Investigative Team also conducted interviews of 32 individuals with knowledge of the facts or circumstances surrounding NFA’s audits of PFG, including 25 current or former NFA employees, 5 former PFG officials (including former PFG CEO Wasendorf), the Receiver appointed by the United States District Court for the Northern District of Illinois, and the founder of Confirmation.com, the electronic confirmation service that NFA auditors used in 2012 which resulted in the discovery of the fraud.
The investigation found that NFA conducted a total of 27 audits of PFG during the period between 1995 and 2012. These included 17 unannounced annual audits conducted every 9 to 15 months, 7 audits of PFG’s branch offices, an additional audit during 2010 and two additional audits in 2011. In 7 of the 17 annual audits, NFA auditors sent a bank confirmation to U.S. Bank. The audits did not find any material issues with the confirmations until 2012, when they began using an electronic confirmation process and the fraud was uncovered.
The investigation further found that these audits were, for the most part, routine audits designed to review…

Related Documents