Confirmation Uncovers $200 Million Peregrine Financial Group Fraud


NASHVILLE, TN – July 23, 2012 – Within 24 hours of a regulatory mandate to use electronic audit-confirmation service Confirmation, PFGBest, a commodity brokerage unit of Peregrine Financial Group, Inc., was exposed as a multi-year $215 million fraud.

"PFGBest is a sadly common example of how easily bank and account information can be falsified to evade detection of accounting frauds," said Brian Fox, founder and president of Confirmation. "CEO Russell Wasendorf resisted using our service for months, presumably because he knew that as soon as electronic confirmation went into effect, he would be exposed. 自從我們在2000年推出這種服務之後,這種模式我們已經看到幾次了;拒絕我們的系統就是舞弊的警訊。」


Press reports indicate that the NFA is moving to mandate use of Confirmation by all of their regulated brokerages.

"This is a textbook case of how easy it is to use false mailing addresses and fax machines to conceal massive theft and fraud," Fox added, referring to the way Wasendorf faxed forged confirmation documents and provided auditors with what they presumed was a bank's address but has now been reported as being controlled by Wasendorf to avoid detection.「未來全面使用我們的系統可防止這種規模的舞弊案件。」

Auditors and financial institutions in more than 160 countries use Confirmation to help avoid the growing global propensity for fraud and the magnitude of those frauds. 藉由驗證每位用戶的真實身份,該公司雲端解決方案除了能改善審計質素之外,更能增加投資人對於財務報表的信心。

"This event, while tragic for its victims, is a tremendous validation of our service and an indictment on the outdated paper confirmation process," said Chris Schellhorn, CEO of Confirmation.「許多公司及金融機構已經打電話給我們以要求加入我們的系統,讓他們的投資人及客戶能對其帳戶的安全性及透明性感到安心。」

Schellhorn and Fox added that they have seen a significant surge in business inquiries, which happened concurrently with a planned expansion of the service to overseas markets including Turkey, Australia, and South Africa.

About Confirmation

Confirmation is the digital platform and global network trusted by audit firms, banks, law firms, and credit managers to quickly and securely verify financial data. As the inventor of electronic confirmations in 2000, we reshaped and modernized the audit confirmation process. Today, Confirmation helps nearly a million clients across 160 countries confirm more than $1 trillion in financial data every year. Learn more at