SpongeBob coins won’t cost NZ Mint after US broker collapses
The collapse of Iowa-based brokerage PFGBest won't leave NZ Mint out of pocket after it was paid in full for its novelty SpongeBob Squarepants coins.
BUSINESSDESK: The collapse of Iowa-based brokerage PFGBest won't leave NZ Mint out of pocket after the local precious metal minter was paid in full for its novelty SpongeBob Squarepants coins.
NZ Mint was last year commissioned by PFGBest's PFG Precious Metals unit to manufacture and produce a limited edition range of coins based on the eccentric underwater characters in the Nickelodeon cartoon.
This week, PFGBest collapsed after its regulated Peregrine Financial Group unit and owner allegedly defrauded customers and lied to regulators to hide a shortfall of more than $US200 million.
PFGBest was responsible for the sale and distribution of the tender, with a set of four coins selling for $US259 on the spongebobcoins.com website. NZ Mint has distanced itself from the coin range and is no longer promoting it.
"All monies due for the manufacture and production of the product was paid in full and NZ Mint will sustain no loss through the unfortunate liquidation of PFGBest," vice-president of US operations Chris Kirkness said.
That leaves NZ Mint in a better position than Peregrine's clients, who may face a shortfall, according to media reports in the US.
Peregrine has filed for liquidation and has between $US500 million and $US1 billion of assets and $US100 million to $US500 million in liabilities.
The US National Futures Association jumped on PFGBest on Monday and froze the broker's accounts after the industry body received information chairman Russell Wasendorf Snr may have falsified bank records.
Since then, the regulator has launched a suit against the broker, and PFGBest's Wasendorf is in a coma after a suicide attempt, according to media reports.
PFGBest's collapse comes after broker MF Global's demise, with some $US1.6 billion of client money still unaccounted for.
Paul McBeth
Thu, 12 Jul 2012
Thu, 12 Jul 2012
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SpongeBob coins won’t cost NZ Mint after US broker collapses
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