Bloomberg News

Wasendorf Fraud at Peregrine Lasted 20 Years, U.S. Says

July 13, 2012

Peregrine Financial Group Inc. Chief Executive Officer Russell Wasendorf said in a signed statement linked to his suicide attempt that he perpetrated a fraud at his Cedar Falls, Iowa-based company that stretched back two decades, according to a federal complaint.

Wasendorf was charged by U.S. prosecutors with making false statements to federal regulators and is to appear in court later today in Cedar Rapids.

Peregrine filed for bankruptcy a day after the National Futures Association said it identified a shortfall of about $200 million in customer funds on deposit.

Its bankruptcy petition lists more than $500 million in assets and more than $100 million in liabilities. The broker estimates it has more than 10,000 creditors, according to the filing.

The bankruptcy case is Peregrine Financial Group Inc., 12- 27488, U.S. Bankruptcy Court, Northern District of Illinois (Chicago). The regulatory case is U.S. Commodity Futures Trading Commission v. Peregrine Financial Group Inc., 12-cv-5383, U.S. District Court, Northern District of Illinois (Chicago).

To contact the reporter on this story: Andrew Harris in Chicago at aharris16@bloomberg.net

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net


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