Bloomberg News

Byman to Lead Jenner & Block’s NFA Review of Peregrine

July 17, 2012

July 17 (Bloomberg) --Robert Byman, the Jenner & Block LLP partner who worked with Lehman Brothers Holdings Inc.’s bankruptcy examiner Anton Valukas, is conducting the National Futures Association’s internal review of its auditing procedures and its oversight of Peregrine Financial Group Inc.

“I’ll be heading up our team but it’s an internal matter and I can’t comment further,” Byman said by phone today.

The National Futures Association on July 9 announced at least $200 million in client funds were unaccounted for at Cedar Falls, Iowa-based Peregrine.

Russell Wasendorf Sr., the firm’s chairman and chief executive officer, attempted suicide that day and was later arrested. Wasendorf had written a signed statement that he committed fraud for two decades, according to a criminal complaint filed in federal court in Cedar Rapids, Iowa.

The U.S. Commodity Futures Trading Commission sued Peregrine in federal court in Chicago on July 10, accusing Wasendorf and his firm of misappropriating client funds.

Peregrine filed for Chapter 7 court protection in U.S. Bankruptcy Court in Chicago on July 10.

Larry Dyekman, a spokesman for the NFA, declined to comment on the review of Peregrine. In a statement yesterday, the association said it would implement any necessary changes that would improve fraud detection.

The regulatory case is U.S. Commodity Futures Trading Commission v. Peregrine Financial Group Inc., 12-cv-05383, U.S. District Court, Northern District of Illinois (Chicago).

The criminal case is U.S. v. Wasendorf, 12-mj-131, U.S. District Court, Northern District of Iowa (Cedar Rapids). The bankruptcy case is In re Peregrine Financial Group Inc., 12-27488, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).

To contact the reporter on this story: Elizabeth Amon in Brooklyn, New York, at eamon2@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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