July 10, 2012 (Reuters) -- Farmers Tuesday fumed at the prospect of financial losses, or at a minimum a lengthy wait for the return of frozen funds, due to alleged mismanagement at brokerage PFGBest, and some said they had been burned for the last time.
The U.S. futures industry reeled as regulators accused Iowa-based PFGBest of misappropriating more than $200 million in customer funds for more than two years, a new blow to trader trust just months after MF Global's collapse.
Centered in the heart of farm belt, the firm handled agricultural futures accounts for a number of clients who grow corn, soybeans and cotton.
"For the farmers who are directly affected it can be a very severe financial blow," said Dave Miller, director of research for the Iowa Farm Bureau.
PFGBest revealed to clients Monday that their money had been frozen and that they would be allowed to liquidate open trading positions but not withdraw funds or make new trades until further notice.
