Don’t get us wrong- we’re glad people are covering the PFGBest scandal. We’re hoping it brings about change. But when a client forwarded us an article posted on Seeking Alpha by a self-described “forex CTA”… our jaws dropped. We deal with poorly informed articles on managed futures all the time, but this was a mind boggling level of what the @%#@%&$%^. Please, stop passing it around, and let’s set the facts straight.

They contend:

It is still too early to tell how PFG will play out, but based on available information, PFG only had $5 million on deposit with obligations well over $200 million in missing funds — not counting possible lawsuits and other obligations they may have had. For a company that size, $5 million will not cover the legal fees. But assuming there are no expenses unraveling PFG, 5/200 = 2.5%, suggesting clients will get a maximum of 2.5% of their invested funds — a near-complete loss.

We’re not accountants, but this math is just wrong. The firms total reported customer assets were around $400mm. The missing funds are around $220mm. There is currently $5mm at U.S. Bank. That leaves a total of an additional $175mm. Jeffries stated in a press release that they are currently holding $125mm. We believe the other $50 million is at JP Morgan. Which means that over 40% of the funds appear to be there, not 2.5%.

We understand that everyone is angry and confused and searching for answers. Pieces like this don’t help. We won’t make you any promises about how much money you’re going to get back, but these numbers? Forget it.