Judge Approves $20K Raise for Lawyer for Bankrupt, Scandal-Ridden Peregrine Financial

With a Cedar Falls-based brokerage firm in bankruptcy and its CEO in prison awaiting trial on charges of lying to federal authorities about a missing $200 million from company accounts, an attorney representing the company is getting a $20,000 raise.

Judge Carol Doyle granted the raise Wednesday in U.S. Bankruptcy Court in Illinois, an attorney representing creditors told the Cedar Falls-Waterloo Courier.

Peregrine Financial Group, also known as PFG and PFGBEST, is represented by Rebecca Wing. The Associated Press reported the raise would give her a $400,000 salary.

PFG went bankrupt after its founder and CEO . He reportedly tried to commit suicide, and in his suicide note allegedly admitted to years of fraud. Over $200 million was allegedly missing from a company bank account, and  in federal court.

Ira Bodenstein, the court-appointed Chapter 7 trustee for PFG, sought the raise. He said Wing had expertise that would be invaluable as the company sought to repay investors.

Not everyone was happy with the raise. Thousands of PFG's customers lost money in the case. The Commodity Customer Coalition and Vitaloon Inc., a PFG customer had filed objections to the pay raise.